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Energy 100 (2016) 332e348

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Energy
journal homepage: www.elsevier.com/locate/energy

Recognition and prioritization of challenges in growth of solar energy


using analytical hierarchy process: Indian outlook
Sonal Punia Sindhu a, 1, **, Vijay Nehra a, 2, Sunil Luthra b, *
a
b

Department of Electronics and Communication Engineering, Bhagat Phool Singh Mahila Vishwavidyalaya, Khanpur Kalan, 131035 Sonepat, Haryana, India
Department of Mechanical Engineering, Government Polytechnic, Jhajjar 124103, Haryana, India

a r t i c l e i n f o

a b s t r a c t

Article history:
Received 11 August 2015
Received in revised form
19 December 2015
Accepted 21 January 2016
Available online 23 February 2016

The growth of solar energy in India has not reached to satisfactory level due to several challenges faced in
its developmental path. To address these challenges, rstly it is imperative to recognize the barriers of
solar energy implementation. Therefore, the present investigation aims to identify and prioritize the
barriers existing in the developmental path of solar power in Indian perspective using AHP (analytical
hierarchy process). Among the identied barriers, Political and Regulatory Barriers is found to be the
most inuential challenge. Further, sensitivity analysis is performed in order to examine the rank stability of challenges faced by solar industry. Recommendations for the eradication of the barriers are also
suggested. The present study has implication for policy planners, practitioners, researchers and academicians associated with solar industry for investigating solar perspective in India. Moreover, it can be
helpful in structuring strategies for the smooth adoption of solar energy in India.
2016 Elsevier Ltd. All rights reserved.

Keywords:
RES (renewable energy sources)
Solar energy
Barriers
AHP (analytical hierarchy process)
Sensitivity analysis
India

1. Introduction
Energy is the integral component for improving quality of life,
economic development and wealth generation of a country. Presently, the challenges faced by the globe include- inaccessibility to
clean and sustainable energy sources, rural electrication and ever
increasing energy demands. 675 million people in Asia alone are
unable to have access to electricity and 1.9 billion people entirely
depend on biomass energy for cooking purposes [1]. India is the 7th
largest country in the world with 6000 villages that occupy 72.2% of
its human resources [2]. The important component for the poverty
alleviation and growth of rural sector is electrifying this sector.
India occupies 6th rank in the world in consumption of energy.
World bank 2010 report stated that the annual growth of electricity
demand of India including rural as well as urban areas is 7.4 percent
[3]. In the present century, the challenging task across the globe is

* Corresponding author. Tel.: 91 9466594853.


** Corresponding author.
E-mail addresses: sonalpunia8687@gmail.com (S. Punia Sindhu), nehra_vijay@
yahoo.co.in (V. Nehra), sunilluthra1977@gmail.com (S. Luthra).
1
Tel.: 91 9050804516.
2
Tel.: 91 9255229582.
http://dx.doi.org/10.1016/j.energy.2016.01.091
0360-5442/ 2016 Elsevier Ltd. All rights reserved.

the supply of clean and sustainable energy [4]. UN (United Nations)


has declared the year 2012 as a year of Sustainable Energy and the
decade from 2014 to 2024 for the same. Keeping in view the above
facts, the energy access is gaining importance among academicians
and practitioners [5]. According to IEA (International Energy
Agency), the development of RET (Renewable Energy Technologies)
can play a pivotal role in mitigation of climate change, increment of
energy security by reducing dependence on imports of fossil fuels
and reduction of green house gases emissions [3,6]. Solar energy is
considered to be more promising than any other RET due its
innumerous benets [6]. Few of them are stated here:
 Solar energy is clean, abundant, and economical energy source
[7].
 The major source of all the energies is Sun. Heat and sunlight is
primary forms of solar energy. Environment absorbs solar energy and transforms it in many ways and lead to the formation
of other renewable and secondary energies such as biomass and
wind energy [8].
 Solar energy plays a vital role to solve present issues such as
greenhouse gas emissions and global warming [9]. It is considered as a Green Energy Source [10].
 Solar energy is helpful in generating employment opportunities,
diversifying the supply of fuel and in economic growth [11].

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

Before using solar energy, it is rst collected and converted into


some useful forms [7]. In general, it is segmented into two forms:
SPV (Solar Photovoltaic) Technologies: It directly converts the
solar energy into electrical energy without use of any heat engine
[12].
Solar Thermal Technologies: In this solar collectors absorb
irradiation as heat and transfer it to its working uid (air, water or
oil) [13,14]. It further can be used directly for heating, cooking and
drying purposes.
 Since from the past solar energy has been utilized for many
purposes viz. to dry animal skins and clothes, preserve meat, dry
crops and evaporate sea water for extracting salt.
 Now-a-days its use is extended to lighting, cooking, solar water
heaters and architecture houses; medium scale equipments
include water heating in hotels and irrigation after a great
research [15].
 Solar energy is utilized in refrigerating vaccines, purifying and
pumping water and providing electricity in remote and rural
sectors at community levels [16].
 Industrial scale uses include- pre-heating boiler water [17],
generating power [12], detoxication [18], municipal water
heating [19], telecommunications as well as transportation
[12,20].
 SPV has proved to be more labor oriented than other RET so it is
considered that it will create approximately four folds more
employment opportunities as compared to wind farms or
biomass power plants [21].
 An ordinary middle class family can save Rs 1100e1500/- on
monthly electricity bill by installing 2 KW rooftop SPV power
equipment costing one Lakh. Indeed, this investment can be
recovered in four to ve years [22].
As per MNRE (Ministry of New and Renewable Energy), India
receives 5000 trillion kWh of solar energy annually [9]. The Data
of IMD (Indian Meteorological Department) indicates that India
has approximately 250e300 sunny days annually. It is evident
from MNRE data that Rajasthan and Gujarat are the states which
receive highest global radiation [11]. Sensing vast untapped potential of solar energy, it is evident that it can act as catalyst to
achieve green energy solution, accessibility to clean and sustainable energy, rural electrication and energy security issues to
achieve the mission of Make in India and digital life. There is just
the need to recognize and exploit it for useful applications.
Despite of its several promotional efforts in India for a long time
by government sponsored R&D (Research & Development) and
production facilities, it has not been able to reach to the largescale and grass root levels. Hence its contribution in country's
total electricity generation capacity was negligible up to 2009.
Therefore, in an effort to increase its penetration in market, the
GoI (Government of India) introduced JNNSM (Jawaharlal Nehru
National Solar Mission) under the NAPCC (National Action Plan on
Climate Change) in November 2009 [23]. With this green energy
initiative, India has taken a strong step towards the implementation of solar energy. Reviewing the sufcient past studies on
solar energy, certain research gaps are observed. These gaps
necessitate the need of present research. The forthcoming section
discusses the need and motivation for carrying out present study.
1.1. Motivation for present investigation
Since the last two decades, global climate changes and security
of energy supplies have received much attention worldwide [24].
Many scientic studies have revealed that the present level of CO2
in the environment is 31% more than level before 200 years [8].

333

WHO (World Health Organization) statistics reveal the death of


1,60,000 people annually due to climate disturbances and it may
get two folds by 2020 [17]. Moreover climate changes cause several
natural calamities also such as ood and drought etc. Realizing the
alarming situation, the international community is focusing towards the reduction of greenhouse gases emissions and handling
the climate change [24]. In reality, the adoption of alternative energy sources is the key solutions to these issues. However a lot of
barriers are prevalent which prevent the investment and diffusion
of RES (Renewable Energy Sources) [24,25]. Form the literature
survey; it has been observed that many scholars and practitioners
have reported the barriers of RES including solar energy. Some of
the studies relevant to present investigation are summarized
below:
Painuly et al. (2001) presented a framework for the identication of barriers in RET and suggested some measures for overcoming these barriers. In this study, market imperfections and
its distortions, economical and nancial, institutions and technology related, social cultural and behavioral barriers in the
penetration of RET is presented [26].
Martinet et al. (2004) has identied the various barriers of RES
such as cost and pricing; legal and regulatory; and market
performance etc. This study concluded that the existence of
barriers put the RES economically, institutionally and regulatory
disadvantage in comparison to other energy sources and presented some promotional policies also which might support its
diffusion in near future [25].
Reddy et al. (2004) conducted survey in Maharashtra state of
India among households, industrial and commercial personnel;
and policy experts for identifying barriers in diffusion of RET.
Authors have identied economical, technological, market and
institutional barriers on dissemination of RET in India and
ranked these barriers on the basis of perceptions of various
stakeholders [27].
Margolis et al. (2006) discussed some non-technical barriers in
relation to solar energy usage such as awareness issues, government policies issues, inadequate nancing options and
workforce etc. Authors have recognized barriers of various SET
(solar energy technologies) such as SPV, solar thermal, PV
(building focus and utility focus), building integrated PV, solar
domestic hot water systems and some other RET also [28].
Timilsina et al. (2011) observed economical, technical and
institutional barriers in the development of SET and further
presented key policy instruments that support the penetration
of solar energy [29].
The research studies conducted by Kapoor et al. (2014) has listed
several potential issues of solar energy sector in India like
technical, policy and regulatory, socio-economic and institutional. It also discusses the government initiatives taken for the
adoption of SET [30].
It is obvious from literature survey that studies regarding the
barriers of SET are available but studies which deals with analysis of
barriers to nd the priority or rank or intensity of the barriers are
missing. A few of the studies which emphasize the analysis of
barriers is as follows.
Ansari et al. (2013) has attempted to categorize the barriers of
solar energy in India on the basis of dependence and driving
powers by using ISM (Interpretive Structural Modeling) technique and used MICMAC analysis for its validation [31].
Luthra et al. (2015) ranked the barriers of renewable or sustainable energy adoption in India. It further uses sensitivity
analysis for the model verication [32].

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S. Punia Sindhu et al. / Energy 100 (2016) 332e348

In light of the above discussion, it is evident that there is


stringent need of studies which can investigate the intensity of
barriers which might help in policy framing for their removal.
Understanding the need of hours, authors have set certain goals
of the present study which are discussed in forthcoming
subsection.

details of the adopted research methodology. Data Collection and


analysis of data to obtain the results (priorities and rankings of the
barriers) has been presented in Section 6. Findings and discussions
along with recommendations for removal of barriers and research
implications have been given in Section 7. Finally, Section 8 concludes the present investigation along with the future scope of
research.

1.2. Objectives of the study


2. A brief review of solar energy: Indian outlook
The population of India is assessed to reach up to 2289 million
by the year 2051. So large population and developmental activities
are estimated to raise the energy demands of India by many folds
over the coming years [33]. Solar energy has the huge potential
which can act as catalyst in fullling most of the energy needs of
the country and can solve its environmental problems as well.
Despite of numerous benets and potential, a lot of barriers exist in
the implementation path of the same. Therefore, it imperative to
address these challenges and is the need of hours [24]. Keeping in
view the same, the objectives of the present investigation are as
follows:
 For future growth of RES, it may prove useful to search for potential barriers to a RES project [24] so rst of all focus is kept
towards gaining insight into the identication of barriers of
solar energy.
 Finding the intensity of barriers for their removal may prove
advantageous [31] so objective is to prioritize the barriers using
AHP (analytical hierarchy process) technique and obtain ranking
of the identied barriers.
 Measures are very important as they may help in lifting the
barriers and improving the outlook of RES projects [24]. Some
suggestive measures from the extensive literature review and
experts inputs are presented on solar energy that might help in
mitigation of intensity of barriers.
Now-a-days MCDM (multi-criteria decision making) is attracting the attention of decision makers for renewable energy planning, management and resource allocation because it leads solution
to complex problems. These methods help in improving the decision quality by making them more explicit, rational and efcient. It
has been observed from the literature that AHP has gained wide
popularity and most widely-used approach among all the MCDM
techniques [34]. Several desirable attributes favor the adoption of
AHP as a research tool for the present investigation [35] such as:
AHP is appropriate in the decision situations that involve subjective judgment.
It can process quantitative as well as qualitative data [36].
It involves the provision of consistency of preferences given to
the weights.
Ample academic literature is available regarding AHP
applications.
Commercially AHP software is available having technical as well
as educational support.
AHP is the best technique for the situations that requires
group decisions.
Keeping in view the needs of present study and benets of AHP
technique, this approach is selected to conduct present study.
The structure of the paper is as follows: After a short introduction, the brief review of solar energy is presented in Section 2.
The identication of key barriers related to adoption and implementation of solar energy based on extensive literature review is
presented in Section 3. Section 4 discusses and explains the
research framework for present investigation. Section 5 gives

The contribution of CES (conventional energy sources) in the


global energy consumption consists of almost 80% and that of RES is
only about 1.5% of world energy demand in 2006. It is obvious from
the same that the share of RES is considerably smaller as compared
to CES. This may owe to the slow growth of these resources across
the globe. The major initiatives and ongoing activities for growth of
RES with special emphasis on solar energy are as follows:
2.1. Review of growth of RES with special emphasis on solar energy
The trajectory of growth of RES in India particularly solar energy
can be summarized as follows:
GoI set up DST (Department of Science and Technology) in 1981
for promoting RES.
Subsequently in 1982, GoI set the DNES (Department of Nonconventional Energy Sources) which was converted to MNES
(Ministry of Non-conventional Energy Sources) in 1992 and
renamed as MNRE (Ministry of New and Renewable Energy) in
October 2006.
GoI established IREDA (Indian Renewable Energy Development
Agency) for nancing renewable energy projects [37].
The MNRE is working in synchronization of IREDA for promoting
the solar power and increasing the share of RES in the market of
India [38].
On 30th June, 2008 under NAPCC, GoI proposed to start 8 missions, amongst which one was the JNNSM [39,40].
GoI set up SEC (Solar Energy Centre) for developing solar
energy systems and its devices at Gurgaon city in Haryana
state of India [38].
After the brief outlook of various initiatives and steps taken by
GoI for the promotion of solar energy, the succeeding subsection
presents the status of solar energy in India.
2.2. Review of current scenario of solar energy in India
Several key points highlight status and vision of India for
development of solar energy as stated below:
The GoI offers nancial support for various solar systems such as
solar air heating/drying as well as for solar concentrating systems [38].
The vision of GoI is to reduce the harmful gases emission intensity by 20e25% by the use of its abundant solar resources and
provide 500 GW of clean energy with thorium based nuclear
energy by the year of 2050 [41].
NAPCC had also set a objective of 5% of power purchase from
renewable sources, which will be raised by 1% annually to get to
15% by the year, 2020 [41].
Different states of India are involved in solar power generation
such as Gujarat generates 600 MW of solar power and gets 1st
rank followed by Rajasthan with over 500 MW. Madhya Pradesh
and Andhra Pradesh are too catching up now with their huge
solar power plants [22].

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

Presently, NDA (National Democratic Alliance) government has


rightly put forward various major green initiatives for Indian sustainable energy development during the last year [22].
The target set by UPA (Union Progressive Alliance) government
to install 20,000 MW of solar power in the country has been
reset by the NDA government to achieve ve times more as one
Lakh MW by 2022.
Presently, GoI is putting efforts for building a consortium of 50
countries with abundant solar radiation to pool R&D and technological advancements for improving its accessibility to the
poor, rural and remote areas.
293 companies participated in the global renewable energy
investor's meet held at one of the states of India i.e. New Delhi
that included NTPC (National Thermal Power Generation),
Suzlon Power, and Reliance Power etc. and has promised for
setting up plants to generate 26,600 MW of renewable energy
in next 5 years.
India's largest lender i.e. SBI (State Bank of India) has committed
Rs 75, 0000 million rupees for the generation of 15,000 MW of
clean energy over a period of next 5 years.
Tamil Nadu state of India has constructed three Lakh rural
houses with rooftop solar power. The replications of these are
expected by the NDA government embarking housing for all
by 2022.
Observing these efforts, it can be predicted that the contribution
of RES can be expected to escalate in future and increase up to 1.8%
by 2030 [17]. IEA analysis on comparative study of world energy
consumption shows that by the year of 2050, solar array installations will be able to supply around 45% of world energy demands [17].
Although efforts have been made for the establishment of RES
yet this industry needs more thrust. For availing the potential
benets of solar energy, current pace is not satisfactory and needs
to be speed up. In this direction, recognition of the existing obstacles in the wide spread adoption of SET is the fundamental step.
The succeeding section identies the barriers existing in the
developmental path of solar energy.

3. Identication of barrier in adoption of solar energy in


India
India has huge potential of solar energy that has capability of
fullling its entire energy demands. But it is evident that the
contribution of solar energy in energy supply mix is not considerable [29]. The small contribution of solar energy in meeting country's energy needs is questionable. Therefore, it is imperative to
identify the key barriers that prevent the implementation of solar
energy on a large scale.
The barriers of SET are contextual and dynamically evolving over
time so it is very difcult to identify them accurately [42]. Keeping
this in view, help of several databases such as newspaper articles,
websites particularly Google Scholar search tool bar, academics
research papers, magazines and several reputed journals such as
Science Direct, Inder Science and Emerald etc. has been taken.
Important and prominent thirty six key challenges in penetration
and diffusion of solar energy were recognized through literature
survey and interaction with the experts. Further, these barriers
were categorized into seven main barriers (Institutional barriers;
Technical barriers; Social, cultural and behavioral barriers; Political
and regulatory barriers; Market barriers; Finance barriers and High
cost of capitals) through experts' judgments. The identied subbarriers under each category are discussed as follows:

335

3.1. IB (institutional barriers)


These are the barriers which are caused by the political institutions that may be due to state governments and local authorities [43].
3.1.1. Legislative failures (IB1)
Government ofcials, commercial and industrial personnel
responsible for taking major energy decisions as well as banking
and other nancing ofcials favors the already established technologies [28] and prefer for known fossil fuels over newer renewable energy sources [44].
3.1.2. Lack of coordination between agencies (IB2)
Major institutional barrier is the presence of large number of
various ministries and agencies involved in permitting procedures
and lack the coordination and cooperation between them which in
turns create delays in development of solar energy related projects
[45,46]. This gap in coordination and cooperation leads to distrust
in investment of renewable energies [46].
3.1.3. Lack of R&D culture (IB3)
The solution of many problems can be provided by putting efforts and focusing towards R&D. Reduction in initial costs of projects can be possible through investments in R&D [46]. Moreover
difculties lies in the exchange of research information across the
borders [30]. However, R&D work is also being done for improving
the efciency and reducing the manufacturing cost of SPV panels.
IEA framed a plan named as 2050 roadmap for improving the efciency and reducing the cost of solar technology. Target is set to
achieve efciency up to 25% in crystalline and 15% in thin lm
technology [10].
3.1.4. Lack of local infrastructure (IB4)
It include the land availability and acquisition problems, transmission and evacuation facilities [30]. For transmitting the generated power from generation place to the requirement place;
transmission facility, road facilities, water supply and other local
infrastructure is required. Land acquisition process depends on the
policies of the state such as Gujarat gives free hand to developers to
choose land as per their requirement while Rajasthan adopted a
xed procedure of rst identifying government waste land and
then allotting it to various developers for solar power project. The
lead time for the acquirement of land in various states ranges from
six to twelve months and in some cases it may take a year by the
developers [47].
3.1.5. Uncertain government policies (IB5)
Government policies play a crucial role in stimulating and sustaining green technologies [48]. Various government policies lack
clarity in specied policy guidelines, installation plan policy, and
proper framework for the promotion of the solar technology [26].
No policies exist for dealing with water and land allocation issues.
Moreover, lack of enforcement of the framed policies also exists
[30]. Several government policies distort prices such as high electricity prices are charged from industries, which stimulates selfgeneration of power using inefcient diesel-powered generators
[49]. Policy planners are considered to be partially unaware of the
characteristics and prospects of solar energy because of absence of
specialists among them [45].
3.1.6. Lack of specialized courses on RET engineering (IB6)
It may be termed as education system failure barrier as of till
now there are no specialized courses on solar power technologies
and exist only in the proposals and declarations. In JNNSM phase-II,

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S. Punia Sindhu et al. / Energy 100 (2016) 332e348

target has been set to introduce courses on solar energy in various


institutes such as 100 institutes at graduation and diploma levels as
well as 1000 Institutes at ITI (Industrial Training Institutes) levels
[39]. Indeed, it will help to produce expertise in solar power
technology.
3.2. TB (technical barriers)
Various technical issues and uncertainties are associated with
technological aspect of RET. The existence of technical issues makes
SET a weaker link as competition lies with established energy
sources [30].
3.2.1. Lack of proper standards (TB1)
Absence of national standards, specications and effective
quality control units in the market that can regulate the products of
solar energy act as a major technical barrier. Moreover, the products
lack trademark and analysis certicates from manufacturers. In fact,
most of the products in the market do not contain any brand name
and several poor quality solar components and systems exist in the
market [50]. Mandatory laws regarding meeting a minimum level
of standards and efciency should be enforced for all the appliances
[49].
3.2.2. Lack of entrepreneur and innovations (TB2)
Lack of public participation, involvement and initiation is one of
the biggest barriers [44]. Power utilities do not show interest to use
innovative approaches [30]. Moreover at the designing level of the
projects the involvement of the communities is negligible [44].
Public opinion can be taken into the account so that their needs can
be understood and analyzed effectively.
3.2.3. Lack of skilled personnel and training institutes (TB3)
The absence of appropriate training institutes and expert
personnel leads to the existence of substandard products of solar
systems. Moreover, services by installers and technicians lack
adequate expertise [44]. Presently, the existing trained manpower
of India is capable of installing only 2000 MW whereas China has
created enough expert manpower to install 20,000 MW of solar
power yearly [22].
3.2.4. Performance constraint and technology risk (TB4)
As the solar technology is still in developing stage so the high
risks are associated with it such as risk of obsolescence rate [30]. At
the same time, while implementing a technology in a country, its
exact performance cannot be predicted on the basis of its deployment in any other country having different conditions [46]. The
efciency of BOS (balance of system) components and solar modules is limited.
3.2.5. Storage issues (TB5)
The availability of solar energy is not continuous and it uctuates [50]. Infect to supply uninterrupted power, this energy is
needed to be combined either with storage devices or any other
energy source [51]. Suitable storage technology stores the solar
energy when it is available, and the stored energy can be re-used
when the sun is not available [50].
3.2.6. Design and ease of operation (TB6)
Personnel in Indian solar industry are not expert in the installation, operation and maintenance of solar energy equipments [44]
so whenever any failure is occurred it becomes difcult to repair it.

3.3. PRB (political and regulatory barriers)


These barriers include lack of political commitment and instability of government in the country.
3.3.1. Multi tired government approvals (PRB1)
Among many issues faced by the developers, one of the major
issues is getting clearance at a single window. Although many
states in India have started executing single window clearance
projects like Haryana, Punjab, Rajasthan, Himachal Pradesh and
Uttrakhand. But, still it has not been implemented so effectively
[46].
3.3.2. Lack of strong political will (PRB2)
Strong political will is required for taking strong measures for
deployment of solar power in any country [44]. Political commitment have helped many countries to become world leader in solar
industry such as China [31].
3.3.3. Political instability (PRB3)
The political will changes with the change of ruling government
over a country e.g. the present NDA government seems to support
the renewable energies with the mission of Swachh Bharat
Mission, Make in India, and Clean India, Green India. All these
slogans favor the usage of RET. UPA government had set a milestone
and gave a new developmental path to solar energy with the launch
of JNNSM [39].
3.3.4. Lack of experts at decision and policy making level (PRB4)
Lack of knowledge of project developers and managers working
at the decision making levels for understanding the energy related
needs of rural communities and society create a major impediment.
Many government ofcials, commercial and solar industry
personnel lack information regarding the availability, cost and
usefulness of solar power technology. So, experts should be
appointed at these levels so that they can understand how to adapt
solar power projects for meeting the needs of the society [44].
3.3.5. Non-functioning of agencies at the local level (PRB5)
Information regarding technology or appliances should be
conveyed from the adopters to non-adopters. It must be ensured by
the government that solar appliances, machinery and equipments
are required to be labeled for showing its energy usage, efciency
and that claim needs to be certied. In India it can be started by the
BEE (Bureau of Energy Efciency), but some labeling programs are
still not compulsory [49].
3.3.6. Regulatory issues (PRB6)
Central and state GoI has purposed strong policies to stimulate the diffusion of RET. Still, to motivate investors for solar
energy, it is strongly required that clear and consistent alignment must exist among central and state jurisdictions. Moreover, certainty over the timeframe for their investment must be
ensured [52].
3.4. MB (market barriers)
These are the barriers which are governed by the market [43].
Various scholars and practitioners argue that the lack of awareness,
interest, and ability to pay for the technology undermines the
growth of the market.
3.4.1. Lack of competition (MB1)
The competition faced by the products in the market lowers
down the cost of the products. But solar power products lack the

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

competition in the market. Resources can be used efciently if


market is competitive. It may lead to the centralization of market
power in few hands who may charge prices in excess of marginal
costs. These situations are commonly faced in several sectors such
as electricity supply industry [27].
3.4.2. Poor market infrastructure (MB2)
Generally, it is seen that established companies have monopoly
and market power to guard their positions. It is required to assess
the appropriateness of traditional business boundaries and
restructure the current market. In this way, liberalization of the
market could force market participants to nd new solutions [53].
The force of liberalization will introduce competition where it is
possible and economic regulation of private rms where it lack
existence [27].
3.4.3. Small market size (MB3)
Solar power projects employed and its associated companies are
not generally big. The developers of solar power projects have less
resource availability as compared to large generation companies
and their consumer accessibility for the direct communication is
lacking. Therefore, their participation in regulatory or legislative
proceedings, or in industrial forums for various big decision is
almost negligible [27].
3.4.4. Partnership issues (MB4)
Many SPV projects are partnerships based and these may not
prove successful in long run and break before the completion of the
entire project or before the recovery of initial investment so it
creates problem while operating and maintaining the system
[29,30].
3.4.5. Lack of solar radiation measuring centers (MB5)
For deploying solar power projects across the nation, it is
indispensable to obtain accurate and readily available data to acquire resources. Sufcient data regarding DNI (Direct Normal Irradiance) and GHI (Global Horizontal Irradiance) is not available that
hinders the implementation of the solar projects [30]. It is vital to
assess the solar irradiation, potential as well as weather conditions
of a particular place to establish a project [54]. In this direction,
setting up of solar power measuring centers is the fundamental
need. In fact, it is one of the major thrust areas under JNNSM phaseII [39].
3.4.6. Splitting of incentives (MB6)
This barrier can be best explained through landlords and tenants
example in the housing market. The landlord of a building may not
want to install a SWH (Solar Water Heater) for reducing electricity
usage because the resulting savings would be realized by the tenant. Similarly the tenant may not be wishing to install it because if
he moves out early then cost saving benet is left [27]. In this way,
solar power installation is hindered.
3.5. SCBB (social, cultural and behavioral barriers)
These are the barriers which are arisen by the individuals [43].
There are various renewable resources present in India but still
these cannot be harnessed for sustainable development due to lack
of technology and public awareness [55].
3.5.1. Lack of awareness (SCBB1)
It is a general belief that the implementation of RET is less
because of lack of information or knowledge to the customers and
low condence to obtain reliable information [27]. In India, public
capacity information dissemination is lacking. Consumers lack

337

access to any knowledge that is readily available and accessible. So,


information collection and processing activities consume their time
[27].
3.5.2. Resistance to new technology (SCBB2)
Most of the people lack awareness regarding the advantages of
using solar energy in daily life. Moreover, they don't know about
possible social and environmental impacts of using non-renewable
energy sources [45]. People are reluctant to adopt new technology
by perceiving it more complex and it may cause disturbance in their
daily routine or habits or comforts [56].
3.5.3. Perceptional problem (SCBB3)
Adoption of RET depends on the perceptions of the consumer
about the quality and benets of the items in comparison to the
traditional technologies. While purchasing a technology, the general habit of consumers of seeking advice from friends rather than
consulting experts also becomes a cause of economically irrational
decision [27].
3.5.4. Low affordability of weaker sections of the society (SCBB4)
The installation cost of the solar power projects is high due
to the high module cost of SPV systems so it is not affordable to
the low sections of the society. If the project designed in
meeting the local needs of the consumers get fails then it creates distrust among the people and further stops the adoption
of renewable energy for coming decades. Rural people and
weaker sections of the society cannot afford such unsuccessful
experiments [44].
3.6. FB (nance barriers)
Most of RETs need heavy investment which prohibits the consumers to adopt them [27]. Moreover nancing the solar projects
and equipments is a big issue.
3.6.1. Lack of access to credit/capital (FB1)
The availability of governmental subsidies for fossil fuels and
unavailability of such similar subsidies for renewable energy activities is a common barrier [57].
3.6.2. Lack of nancing institutions (FB2)
The banks or nancial institutions make haste in recovering the
funds and hence, long-term solar projects are contemplated as too
risky to be nanced. Furthermore, for the population belonging to
the low-income range, it is thus generally difcult to invest in solar
energy systems [50].
3.6.3. Budgetary constraints (FB3)
It is signicant to notice that lack of experiences and understandings of renewable energy among national nancial institutions and investors may lead to their low participation. Hence,
the budgetary constraints leads to the involvement of foreign investors for solar power projects that results in increase of cost of
capital and makes solar power project risky [45].
3.6.4. Lack of nancial literacy (FB4)
Many rural families do not have the sense of savings, credit,
debt, or even money such as solar energy often is much more
efcient than other energy sources in practice e.g. for providing
night lighting, a SPV compact uorescent light system is found to be
hundred times more efcient than kerosene, utilized in the rural
sectors of several developing countries. So, SPV systems not only
prevent the high costs but eliminate pollution problems of standard
fossil-fueled power plants also [44].

338

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

3.7. HCC (high cost of capital)


Cost reects the investors' high perception risk and a general
lack of nancing instruments as well as fragmented or underdeveloped nancial sectors. Renewable energies do not have fuel
costs, operation and maintenance cost but their initial investment
cost is too high as compared to fossil fuels systems [50].
3.7.1. High payback period (HCC1)
It is a well known fact that the initial cost of implementation
of solar energy is high but its operating cost is low. But many
consumers prefer keeping the initial cost low instead of minimizing the operating costs which run over a long period thereby
increasing the payback period. This type of rst or initial cost
bias is commonly observed in developing countries like India
where low income customers don't have access to cash or credit
[27].
3.7.2. Solar manufacturing challenges (HCC2)
India depends on imported wafers for manufacturing solar cells
and faces competition from world leaders in solar industry such as
China & Taiwan. Manufacturing facilities in India are based on
repeating the already existing technologies and gets limited to
small processing units [46].
3.7.3. Cost of balance of system components (HCC3)
The cost of BOS (Balance of System) components is now saturated and not declining [30]. Many experts have predicted that the
industry can succeed further if the costs for BOS components such
as inverter and mounting structures are reduced [21]. BOS cost
reduction can be possible by standardizing mounting and installation techniques and devices [21].
3.7.4. O&M (operation and maintenance) cost (HCC4)
The SPV technology dominates among all RETs because of
noise-free operation, non-toxic emissions, and comparatively
simple O&M [46]. Solar technologies are viewed as the energy
supply option for the remote and rural poor areas in the country.
The operation and maintenance cost of the solar devices is high
due to the lack of presence of technically skilled personnel.
Failure of devices may act as a discouraging factor for the potential users of the technology due to lack of technical support
[50].
In nutshell, in the present section, a brief discussion of all the
seven barriers with their sub-barriers is highlighted.
Having recognized the key barriers of the solar energy, next
section discusses the methodology of research and framework
adopted in the present study.
4. Framework of present investigation
On the basis of extensive survey of literature and expert's suggestions, the barriers existing in the developmental path of the
solar energy were identied. The recognized barriers were evaluated using AHP technique based on opinions received from experts.
The framework of the present investigation is depicted in Fig. 1.

Extensive literature review

Forming experts group

Search the barriers impeding the growth of solar energy in


Indian context

Form the decision hierarchy of the barriers of solar energy

Analyzing the barriers to achieve ranks of barriers using


AHP approach through expert inputs

Results, discussions and conclusions


Fig. 1. Framework for present investigation.

weight of each criterion and indicator [58]. The AHP technique is a


MCDM technique which was given by Thomas L. Saaty in 1980. The
applicability of AHP method is wide across the globe. Various researchers and scholars have utilized AHP method to solve various
problems related to different industries. Some of the important
studies utilizing AHP method particularly in reference to energy
industry are listed in Table 1.
The forthcoming subsection presents the various steps involved
in AHP technique.

5.1. AHP: explanation step-wise


On the basis of extensive survey of literature and expert's suggestions, the barriers existing in the developmental path of the
solar energy were identied. The recognized barriers were evaluated using AHP technique based on opinions received from experts.
AHP method comprises of various steps as stated below [32,62].
1. Dene problem
Dene the problem i.e. prioritization of the barriers of solar
energy in India in the present investigation.
2. Construct hierarchy
Problem under consideration is structured as a hierarchy and
broken down into levels. Thirty six barriers in diffusion of SET in
India have been recognized with the help of an intense literature
survey and classied them into seven dimensions on the basis of
their nature and experts' interaction. Fig. 2 shows the developed
decision hierarchy of challenges in diffusion of solar energy in
India.
3. Make pair-wise comparison and obtain the judgmental matrix

5. Methodology
When the complexity associated with decisions keep on
increasing, it becomes cumbersome for decision makers to nd an
alternative that maximizes all decision criteria. For determining the
relative importance of selection criteria, AHP is used because it is
based on pair-wise comparisons. The technique is also considered
to be the most accurate when requirement is to reect the relative

The comparisons of barriers and sub-barriers at pair level lead


to the formation of judgmental matrices. Further, solutions of
these matrices have been found by utilizing AHP methodology to
determine ranking and priorities of barriers. Global priority
weights are linked with barriers or dimensions and local priority
weights are linked with sub-barriers within the specic barrier or
dimension.

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

339

Table 1
Use of AHP technique in energy industry.
S. No

Use of AHP in applications

Researcher's

1.
2.
3.
4.
5.
6.
7.

Design of hybrid solar wind system


EIA (Environmental Impact Assessment)
Search suitability of particular RES
Ranking barriers in adoption of renewable/sustainable energy in India
Sustainable assessment in energy planning and management
Selection of solar thermal power plant investment project
Multi-criteria renewable energy planning

[59]
[36]
[60]
[32]
[61]
[62]
[58]

Prioritizing the Challenges in Implementation of Solar Energy in India

IB

TB

PRB

MB

SCBB

FB

HCC

1B1

TB1

PRB1

MB1

SCBB1

FB1

HCC1

IB2

TB2

PRB2

MB2

SCBB2

FB2

HCC2

TB3

PRB3

MB3

SCBB3

FB3

HCC3

IB4

TB4

PRB4

MB4

SCBB4

FB4

HCC4

IB5

TB5

PRB5

MB5

IB6

TB6

PRB6

MB6

IB3

Fig. 2. Decision hierarchy of challenges in implementation of solar energy in India.

Firstly, the maximum eigenvector or relative weights are


calculated. Thereafter, Consistency Index (CI) is computed for each
matrix of order N using Eq. (1). Based on CI and Random Index (RI),
the value of CR can be obtained using Eq. (2).

If the obtained value of CR is  predened CR value, it implies an


acceptable level of consistency in the judgmental matrix. But if
obtained CR is greater than predened value, it indicates inconsistency in the judgments and the evaluation process should be
repeated and handled with due care. An acceptable consistency
ratio helps ensuring reliability in decision taken.

CI (l maxN)/N

5.2. Sensitivity analysis

4. Obtain CR (Consistency Ratio)

(1)

where, l max is maximum Eigen value.


CR is computed using equation (2) as follows:
CR CI/RI

(2)

RI values vary and depend on the order of matrix. Table 2 illustrates the different values of RI for matrices having order (N) one
to ten, which was obtained on the approximation of RI by using a
sample size of 500 [63].
The CR value that is acceptable depends on the order of the
matrix e.g. the value of CR for a 3  3 matrix is 0.05, for a 4  4
matrix it is 0.08 and 0.1 for all the matrices having order 5 [63,64].

Sensitivity analysis helps in determining the degree of inuence


of a variable on the overall model output by manipulating the
model variable [65]. Sensitivity analysis is generally performed
when there are chances of existence of uncertainty for one or more
than one parameter [60]. It helps in determining the smallest
possible change in the present weights of the criteria, that can
change the current positions of the alternatives [32]. This approach
is used one-at-a-time i.e. single variable is changed at a time but
can be extended to multiple variables [65]. Various practitioners
and authors have employed software Expert Choice for performing sensitivity analysis [60].
The owchart of adopted methodology is shown in Fig. 3 [65].
6. Data collection and analysis

Table 2
The possible values of RI (Random Index) [63].
N

10

RI

0.58

0.90

1.12

1.24

1.32

1.41

1.45

1.49

On the basis of the ratings given by the experts during interaction session, judgmental matrices are prepared and nally priorities are obtained using the AHP methodology.

340

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

Literature
review

Analysis of barriers hindering the


growth of solar energy in India

Seek experts choice


Yes

Make pair-wise comparison and form judgmental matrix


Inconsistency
?

Obtain local and global weights of barriers and sub-barriers

Obtain consistency ratio (CR)


No
Perform sensitivity analysis
Obtain sensitivity graph
Fig. 3. Flowchart of used methodology.

6.1. Collection of data


For comparing the barriers and sub-barriers at the pair level, an
expert group of six professionals was formed (one senior level
manager associated with solar industry, one consultant dealing in
green energy solutions, one senior scientist from government
agency, two academicians and one personnel involved in policy
formation). The selection criteria for the experts includes individual
industrial, commercial and consultancy experience (a minimum
twelve years), competent in decision making and expertise in their
domain etc. After nalization of the expert panel, the next task was
making pair wise comparisons. For this, interactive workshop
having many sessions was conducted with the experts.

Table 3 depicts that Political and Regulatory Barriers shows


the most dominance with the reported value of 0.2840 as the
global priority. Rest of the barriers report the value of global priority as High Cost of Capital (0.1921), Institutional Barrier
(0.1654), Finance Barrier (0.1249), Marketing Barrier (0.0987),
Technical Barrier (0.0951) and Social, Cultural and Behavioral
Barrier (0.0398). Therefore, Political and Regulatory Barriers attains rst position in the hierarchy and Social Cultural and
Behavioral Barriers reaches to the last position in the hierarchy in
accordance to their global priority values obtained on applying AHP
approach.

AHP framework of ranking barriers in implementing solar energy in India can be structured as a hierarchy that consists of three
phases:

6.2.2. Phase 2: constructing hierarchy of sub-barriers under main


barriers
This phase consists of applying AHP technique for the subbarriers and obtains the ranking and local priorities of these subfactors. Seven dimensional barriers are sub-divided into certain
further categories. The hierarchy of sub-barriers under main barriers of solar energy in India has been detailed in Annexure-1.

6.2.1. Phase 1: constructing hierarchy of barriers of solar energy in


India
Seven barriers have been recognized as the main dimensional
barriers which are- IB (Institutional Barriers), TB (Technical Barriers), PRB (Political and Regulatory Barriers), MB (Marketing Barriers), SCBB (Social, Cultural and Behavioral Barriers), FB (Finance
Barriers) and HCC (High Cost of Capital) considered for arrangement of hierarchy. In this phase, the rating of the barriers has been
done as per the experts' suggestions and nally a hierarchy is
achieved which is depicted in Table 3 along with the maximum
Eigen values and C.I.

6.2.3. Phase 3: constructing overall hierarchy of barriers


Overall priority of barriers is obtained by the multiplication of
the global weights of dimensional barrier and local weights of the
sub-barriers under them. Once the global weights of the barriers
are obtained, these can be arranged in a hierarchy by giving each a
specic rank according to the obtained value. The global priority
weights of the barriers' along with their rankings are illustrated in
Table 4.
It can be deduced from the results obtained through AHP
approach that political instability sub-barrier is the most inuential barrier with overall priority value of 0.09037. Among the

6.2. Results of AHP analysis

Table 3
Ranking of dimensions of barriers in implementation of solar energy in India.
Barrier dimension category

IB

TB

PRB

MB

SCBB

FB

HCC

Global priority weighting

Rank

IB
TB
PRB
MB
SCBB
FB
HCC

1
0.333
1
1
0.333
1
1

3
1
3
2
0.333
1
1

1
0.333
1
0.333
0.2
0.333
0.333

1
0.5
3
1
0.333
3
4

3
3
5
3
1
3
4

1
1
3
0.333
0.333
1
3

1
1
3
0.25
0.25
0.333
1

0.1654
0.0951
0.2840
0.0987
0.0398
0.1249
0.1921

3rd
6th
1st
5th
7th
4th
2nd

Maximum Eigen value 7.68186, C.I 0.113644.

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

341

Table 4
Priority weights and rankings of barriers in implementation of solar energy in India.
Dimensions of barriers

Global weights of
dimension

Ranks of
dimensions

Sub-barriers

Local weight of
sub-barriers

Global weights of Overall rankings of


barriers
barriers

IB (Institutional barrier)

0.1654

3rd

Legislative failures (IB1)


Lack of coordination between agencies
(IB2)
Lack of R&D culture (IB3)
Lack of local infrastructure (IB4)
Uncertain government policies (IB5)
Lack of specialized courses on RET
engineering (IB6)
Lack of proper standards (TB1)
Lack of entrepreneurs and innovations
(TB2)
Lack of skilled personnel and training
institutes (TB3)
Performance constraint and technology
risk (TB4)
Storage issues (TB5)
Design and ease of operation (TB6)
Multi tired government approvals (PRB1)
Lack of strong political will (PRB2)
Political instability (PRB3)
Lack of experts at decision and policy
making levels (PRB4)
Non-functioning of agencies at local
levels (PRB5)
Regulatory issues (PRB6)
Lack of competition (MB1)
Poor market infrastructure (MB2)
Small market size (MB3)
Partnership issues (MB4)
Lack of solar radiation measuring centers
(MB5)
Splitting of incentives (MB6)
Lack of awareness (SCBB1)
Resistance to new technology (SCBB2)
Perceptional problem (SCBB3)
Low affordability of weaker sections of
the society (SCBB4)
Lack of access to credit/capital (FB1)
Lack of nancing institutions (FB2)
Budgetary constraints (FB3)
Lack of nancial literacy (FB4)
High payback period (HCC1)
Solar manufacturing challenges (HCC2)
Cost of BOS components (HCC3)
Operation & Maintenance (O&M) cost
(HCC4)

0.2802
0.1928

0.04635
0.03189

7th
13th

0.1009
0.0495
0.2518
0.1248

0.01669
0.00819
0.04165
0.02064

25th
34th
9th
19th

0.1107
0.0882

0.01053
0.00839

31st
33rd

0.1977

0.01880

22nd

0.1267

0.01205

29th

0.2820
0.1947
0.1230
0.1779
0.3182
0.1053

0.02682
0.01852
0.03493
0.05052
0.09037
0.02991

15th
23rd
11th
5th
1st
14th

0.0639

0.01815

24th

0.2117
0.1944
0.2207
0.2590
0.0944
0.1234

0.06012
0.01919
0.02178
0.02556
0.00932
0.01218

2nd
21st
18th
16th
32nd
28th

0.1081
0.3907
0.0962
0.1461
0.3640

0.01067
0.01555
0.00383
0.00582
0.01449

30th
26th
36th
35th
27th

0.1797
0.3471
0.3156
0.1576
0.2976
0.2454
0.1760
0.2810

0.02245
0.04335
0.03942
0.01968
0.05717
0.04714
0.03381
0.05398

17th
8th
10th
20th
3rd
6th
12th
4th

TB (Technical barriers)

PRB (Political and regulatory


barriers)

0.0951

0.2840

6th

1st

MB (Market barriers)

0.0987

5th

SCBB (Social, cultural and


behavioral barriers)

0.0398

7th

FB (Finance barriers)

0.1249

4th

HCC (High cost of capital)

0.1921

2nd

obtained ranking of the barriers regulatory barrier stands 2nd


with overall priority value of 0.1067; and perceptional problems
& resistance to new technology are least affecting barriers with
overall priority values of 0.00582,0.00383 respectively. In the
forthcoming subsection, the results obtained using AHP method is
validated through the use of sensitivity analysis.
6.3. Results of sensitivity analysis
Sensitivity analysis is required to be performed on the obtained
results because the factors' weights were given on the basis of
subjective judgments of the experts [32]. In Table 3 Ranking of
dimensions of barriers in implementation of solar energy in India,
PRB (Political and Regulatory Barriers) shows the maximum
priority or global dimensional weight and attains the rst rank.
Therefore, PRB is varied from 0.1 to 0.9 in step size of 0.1 and this
variation also changes the global priority of other dimensions as
depicted in Table 5.
Table 5 shows that High Cost of Capital barrier records
maximum change. Hence, other factors' weights and rankings

change according to the variations done in PRB. At 0.1, High Cost


of Capital factor shows the highest value and is holding the rst
rank and SCBB (Social Cultural and Behavioral Barrier) shows the
minimum value and holds the last rank. This order is maintained
only up to the 0.2 value of PRB factor including the normal value.
After that this order changes and PRB factor records the maximum
value so attains the rst rank and SCBB factor is recorded to have
the minimum value and thus reaches to last rank. This result of
sensitivity analysis thus validates and veries the results of AHP
method. It is evident from both the results that PRB factor lies at
rst rank and is most prominent.
It is well known fact that the overall priority values or global
priority values are obtained by the multiplication of the values of
local weights of sub-barrier and global dimensional weights. In
sensitivity analysis, variations in global priority of barriers have
been observed by varying the Political and Regulatory Barriers
from 0.1 to 0.9. Therefore, making changes in global dimensional
priorities changes the overall or global priority of barriers also. This
change is recorded and presented in Table 6. Normal value show the
original priority values of the barriers and these values t in

342

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

Table 5
Dimensions' priority values after varying the values of Political and Regulatory dimension.
Dimensions of barriers

IB
TB
PRB
MB
SCBB
FB
HCC

Global priority values after varying the values of political and regulatory barriers dimension
Normal

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0.1654
0.0951
0.2840
0.0987
0.0398
0.1249
0.1921

0.2079
0.1195
0.1000
0.1241
0.0500
0.1570
0.2415

0.1848
0.1063
0.2000
0.1103
0.0445
0.1396
0.2146

0.1617
0.0930
0.3000
0.0965
0.0389
0.1221
0.1878

0.1386
0.0797
0.4000
0.0827
0.0334
0.1047
0.1610

0.1155
0.0664
0.5000
0.0689
0.0278
0.0872
0.1342

0.0924
0.0531
0.6000
0.0551
0.0222
0.0698
0.1073

0.0693
0.0398
0.7000
0.0413
0.0167
0.0523
0.0805

0.0462
0.0266
0.8000
0.0276
0.0111
0.0349
0.0537

0.0231
0.0133
0.9000
0.0138
0.0056
0.0174
0.0268

Bold signies the normal weights calculated by AHP methodology.

between the 0.2 and 0.3 values of the PRB factor so it is kept in
between the two and it is shown in bold too.
Based on the results obtained by performing sensitivity analysis,
rankings of the barriers can be found out as illustrated in Table 7.
The graphical representation of values obtained in Table 7 is
depicted in Fig. 4. It depicts overall changes in ranks of the barriers
in the implementation of the solar energy in India.
The inuence of Political and Regulatory Barriers is found to
be dominating over other challenges of the growth of Indian solar
energy. It is deduced that for the elimination of the barriers, PRB
challenges must be addressed rstly.
In summary, several inferences can be drawn on the basis of the
results obtained in this section and these ndings of the results are
presented in the succeeding section.

7. Findings and discussions


Energy is the core engine of social-economic development and
growth of a country. RET provide green, safe and environmental
supportive alternative sources. These sources promise national
energy security at a time when every nation is facing the situation
of depletion of fossil fuels' reserves and hence, long-term sustainability of its economy is in danger [66]. Moreover, conventional and traditional energy sources are environmental polluting.
The countries lying in higher solar insolation bands are thought to
be fortunate because of having the opportunity to utilize it. But
fully utilization of the solar potential needs elimination of the
barriers in its developmental path [31]. The present study has
attempted to identify the potential challenges which hinder its

Table 6
Priority values of barriers after varying Political and Regulatory Barriers dimension.
Barrier S. N.

IB1
IB2
IB3
IB4
IB5
IB6
TB1
TB2
TB3
TB4
TB5
TB6
PRB1
PRB2
PRB3
PRB4
PRB5
PRB6
MB1
MB2
MB3
MB4
MB5
MB6
SCBB1
SCBB2
SCBB3
SCBB4
FB1
FB2
FB3
FB4
HCC1
HCC2
HCC3
HCC4

Barriers' priority values in sensitivity analysis by changing political and regulatory barriers dimension values from 0.1 to 0.9
0.1

0.2

Normal (0.284)

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0.05825
0.04008
0.02098
0.01029
0.05235
0.02595
0.01323
0.01054
0.02363
0.01514
0.03370
0.02327
0.01230
0.01779
0.03182
0.01053
0.00639
0.02117
0.02413
0.02739
0.03214
0.01172
0.01531
0.01342
0.01954
0.00481
0.00731
0.01820
0.02821
0.05449
0.04955
0.02474
0.07187
0.05926
0.04250
0.06786

0.05178
0.03563
0.01865
0.00915
0.04653
0.02306
0.01177
0.00938
0.02102
0.01347
0.02998
0.02070
0.02460
0.03558
0.06364
0.02106
0.01278
0.04234
0.02144
0.02434
0.02857
0.01041
0.01361
0.01192
0.01739
0.00428
0.00650
0.01620
0.02509
0.04846
0.04406
0.02200
0.06386
0.05266
0.03777
0.06030

0.04635
0.03189
0.01669
0.00819
0.04165
0.02064
0.01053
0.00839
0.01880
0.01205
0.02682
0.01852
0.03493
0.05052
0.09037
0.02991
0.01815
0.06012
0.01919
0.02178
0.02556
0.00932
0.01218
0.01067
0.01555
0.00383
0.00582
0.01449
0.02245
0.04335
0.03942
0.01968
0.05717
0.04714
0.03381
0.05398

0.04531
0.03118
0.01632
0.00800
0.04072
0.02018
0.01030
0.00820
0.01839
0.01178
0.02623
0.01811
0.03690
0.05337
0.09546
0.03159
0.01917
0.06351
0.01876
0.02130
0.02499
0.00911
0.01191
0.01043
0.01520
0.00374
0.00568
0.01416
0.02194
0.04238
0.03853
0.01924
0.05589
0.04609
0.03305
0.05277

0.03884
0.02672
0.01398
0.00686
0.03490
0.01730
0.00882
0.00703
0.01576
0.01010
0.02248
0.01552
0.04920
0.07116
0.12728
0.04212
0.02556
0.08468
0.01608
0.01825
0.02142
0.00781
0.01021
0.00894
0.01305
0.00321
0.00488
0.01216
0.01881
0.03634
0.03304
0.01650
0.04791
0.03951
0.02834
0.04524

0.03236
0.02227
0.01165
0.00572
0.02908
0.01441
0.00735
0.00586
0.01313
0.00841
0.01872
0.01293
0.06150
0.08895
0.15910
0.05265
0.03195
0.10585
0.01339
0.01521
0.01785
0.00650
0.00850
0.00745
0.01086
0.00267
0.00406
0.01012
0.01567
0.03027
0.02752
0.01374
0.03994
0.03293
0.02362
0.03771

0.02589
0.01781
0.00932
0.00457
0.02327
0.01153
0.00588
0.00468
0.01050
0.00673
0.01497
0.01034
0.07380
0.10674
0.19092
0.06318
0.03834
0.12702
0.01071
0.01216
0.01427
0.00520
0.00680
0.00596
0.00867
0.00214
0.00324
0.00808
0.01254
0.02423
0.02203
0.01100
0.03193
0.02633
0.01888
0.03015

0.01942
0.01336
0.00699
0.00343
0.01745
0.00865
0.00441
0.00351
0.00787
0.00504
0.01122
0.00775
0.08610
0.12453
0.22274
0.07371
0.04473
0.14819
0.00803
0.00911
0.01070
0.00390
0.00510
0.00446
0.00652
0.00161
0.00244
0.00608
0.00940
0.01815
0.01651
0.00824
0.02396
0.01975
0.01417
0.02262

0.01295
0.00891
0.00466
0.00229
0.01163
0.00577
0.00294
0.00235
0.00526
0.00337
0.00750
0.00518
0.09840
0.14232
0.25456
0.08424
0.05112
0.16936
0.00537
0.00609
0.00715
0.00261
0.00341
0.00298
0.00434
0.00107
0.00162
0.00404
0.00627
0.01211
0.01101
0.00550
0.01598
0.01318
0.00945
0.01509

0.00647
0.00445
0.00233
0.00114
0.00582
0.00288
0.00147
0.00117
0.00263
0.00169
0.00375
0.00259
0.11070
0.16011
0.28638
0.09477
0.05751
0.19053
0.00268
0.00305
0.00357
0.00130
0.00170
0.00149
0.00219
0.00054
0.00082
0.00204
0.00313
0.00604
0.00549
0.00274
0.00798
0.00658
0.00472
0.00753

Bold signies the normal weights calculated by AHP methodology.

S. Punia Sindhu et al. / Energy 100 (2016) 332e348


Table 7
Ranking of barriers after varying Political and Regulatory Barriers dimension.
Barrier S. N.

IB1
IB2
IB3
IB4
IB5
IB6
TB1
TB2
TB3
TB4
TB5
TB6
PRB1
PRB2
PRB3
PRB4
PRB5
PRB6
MB1
MB2
MB3
MB4
MB5
MB6
SCBB1
SCBB2
SCBB3
SCBB4
FB1
FB2
FB3
FB4
HCC1
HCC2
HCC3
HCC4

The local priority values of barriers by changing political and


regulatory dimension values from 0.1 to 0.9 in sensitivity
analysis
0.1

0.2

Normal (0.284)

0.3

0.4

0.5

0.6

0.7

0.8

0.9

4
9
21
33
6
15
28
31
18
26
10
19
29
24
12
32
35
20
17
14
11
30
25
27
22
36
34
23
13
5
7
16
1
3
8
2

5
11
24
34
7
18
31
33
22
28
13
23
16
12
2
21
29
9
20
17
14
32
27
30
25
36
35
26
15
6
8
19
1
4
10
3

7
13
25
34
9
19
31
33
22
29
15
23
11
5
1
14
24
2
21
18
16
32
28
30
26
36
35
27
17
8
10
20
3
6
12
4

7
14
25
34
9
19
31
33
23
29
15
24
11
4
1
13
21
2
22
18
16
32
28
30
26
36
35
27
17
8
10
20
3
6
12
5

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

9
14
25
34
11
20
31
33
23
29
16
24
4
3
1
7
15
2
22
19
17
32
28
30
26
36
35
27
18
10
12
21
5
8
13
6

growth in India. Total thirty-six barriers were observed listed in


literature and various studies given by eminent scholars, practitioners and authors. After identication, these challenges were
fragmented under seven categories by consulting the experts
associated with the solar industry.
AHP methodology was adopted for prioritizing these challenges
of solar energy. Political and Regulatory Barriers was recorded to

343

have the highest global priority dimensional value and secures rst
position in the hierarchy of barriers of solar energy. Social Cultural
and Behavioral Barriers gains the lowest global priority dimensional value and attains least (seventh) rank. The remaining
dimensional barriers lie between these two barriers with each
having individual global priority dimensional value and ranking. In
a step further the sub-barriers under these dimensional barriers
were also judged through the AHP methodology for knowing their
prominence and ranking.
Among the Institutional Barriers, legislative failures occupies
the rst position and lack of local infrastructure holds the last
position.
The study presented by Ansari et al. (2013) uses ISM-MICMAC
method for analysis of barriers and reported government issues
as independent barriers which give rise to other barriers [31].
Among the Technical Barriers, storage issues is found to be
most inuential by securing rst position and lack of entrepreneurs and innovations shows least inuence.
Reddy et al. (2004) conducted survey among industrial
personnel in Maharashtra state and found technical barriers as the
most prominent barrier in wide spread adoption of SWH in this
state.
Political instability attains rst rank and non-functioning of
agencies at the local level attains last rank among the political
and regulatory barriers.
Luthra et al. (2015) conducted investigation on barriers of
renewable energy adoption in India using AHP method and
observed political commitment as the highest ranked barrier [32].
Under the Market dimensional barrier small market size is
recorded to reach at the top of the hierarchy and partnership
issues reaches to bottom level.
Reddy et al. (2004) conducted survey based study and found
market barriers as 2nd most inuential barrier in wide spread
adoption of SWH in Maharashtra state [27].
Under Social Cultural and Behavioral dimensional barrier lack
of awareness is recorded to reach at the top of the hierarchy
and resistance to new technology reaches to bottom level.
Painuly et al. (2001) presented the wide list of barrier of solar
energy and considered social cultural and behavioral barrier as an
effective barrier [26].
In Finance dimensional Barrier lack of nancing institutions is
ranked rst and lack of nancing literacy is ranked least
(fourth).
Reddy et al. (2004) conducted survey based study and found
nancial barriers as most inuential barrier in wide spread adoption of SWH in Maharashtra state among residential sector [27].
High payback period attains rst rank and cost of balance of
system components attains the last rank under the High Cost of
Capital dimensional barrier.

Fig. 4. Sensitivity analysis of barriers in the implementation of the solar energy in


India.

The study presented by Kapoor et al. (2014) represented the


evolution of solar energy since independence of India and

344

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

discussed important barriers of solar energy and considered


payback period as an inuential barrier [30].
Political instability sub-barrier comes out to be most inuential with the overall priority value of 0.09037 and gets rst
position, regulatory barrier stands 2nd with overall priority value
of 0.1067; high payback period and O&M (operation and
maintenance) cost of high cost of capital barrier stands 3rd and 4th
respectively with their overall priority values as 0.05717 and
0.5398 and the top 5th barrier is lack of strong political will
with value of 0.5052.
Partnership issues with overall priority value as 0.00932,
lack of entrepreneurs and innovations with 0.0839, lack of
local infrastructure with value as 0.00819, perceptional problems and resistance to new technology of social cultural and
behavioral barriers are least affecting barriers with overall priority
values of 0.00582,0.00383 respectively.
For testing the validation of the results obtained through AHP
methodology, sensitivity analysis is an important tool. So in the
present study this tool was used and obtained results were found to
be precise. Political and Regulatory Barrier (highest ranked
dimensional barrier) was varied from 0.1 to 0.9 and the effect of this
variation was observed on other dimensional barrier. At 0.1 and 0.2,
High Cost of Capital barrier showed the highest value to get rst
rank and Social Cultural and Behavioral Barrier showed the
minimum value to get last rank. Afterwards 0.3, PRB recorded the
maximum value to get rst rank and SCBB was recorded to have the
minimum value to reach last rank.
In nutshell, the present investigation can prove advantageous to
the professionals working in policy planning and decision making
level for framing the stringent policies. In reality, this study can
help in understanding the barriers prevalent in solar industry and
their ranking so that the necessary measures towards mitigation
can be undertaken.
In the forthcoming section, recommendations for escalating the
trajectory of development of solar energy are presented in Indian
context.

3.

4.

5.

6.

7.1. Recommendations for removal of the barriers


7.
There are various impediments in the developmental path of
solar energy such as high cost of production, lack of consumer
awareness and poor infrastructural facilities. It is necessary to
overcome these barriers for faster growth and mass adoption of the
technology. These recommendations will help in enhancing the
growth of Indian solar energy sector as well as help in reducing the
usage of non-renewable sources of energy and carbon footprint. In
this direction, various measures are as follows:
1. Framing strong policies: The GoI (Government of India) must
formulate comprehensive policies or action plan for allround development of solar sector, encompassing all the
key aspects. The action plan should be prepared in consultation with the State Governments [46]. Realistic and quantied targets can act as a powerful tool to help policy makers
focus their efforts as well as improve policy delivery and
efciency. A more detailed analysis of China's approach towards its successful rural electrication program gives an
insight on combination of centralized, de-centralized and
off-grid electricity supply for providing electricity access to
500 million people in rural areas since 1990 [1].
2. Modifying nancing mechanism: Sufcient nancing institutions are required because lack of ease of access of
capital cost is reported as the biggest challenge for weaker
sections of the society having limited affording capabilities
[67]. Financing mechanism is needed to be modied to show

8.

9.

10.

some trust to the developing technologies and invest in solar


power installations. GoI must provide adequate funds for
R&D also because the manufacturing issues of the solar industry can be handled only through research activities [68].
Motivating local manufacturing: To cut down the initial capital costs of the solar projects, the requirement for GoI is to
upgrade the R&D and manufacturing capabilities [46]. The
present NDA government seems to be on the right track in
this direction. Honorable Indian Prime Minister, Mr. Narender Modi, has given a slogan of Make in India. Indian
government should emphasize local solar PV manufacturing
capabilities as it can derive lot of benets, such as local job
creation and the export of domestic manufactured solar
products to international markets [23].
Encouraging private participation and local investment: Local
governments, communities and entrepreneurs on a common
platform should put efforts in same direction and frequency
to plan and manage the energy systems. The process of
involvement of private sector and local stakeholders would
also help in improving management of the infrastructure and
energy delivery process.
Restructuring subsidies: Government subsidies for traditional
fuels products can be held responsible for the slow implementation speed of RET projects especially in developing
countries [66]. So, it is the need of hours of making both
sources economically competitive i.e. conventional and
renewable sources. In this direction, the subsidies of the
energy sources should be restructured and should be provided only in the renewable eld in order to boost this sector.
Forming system of continuous monitoring: It is true and
entirely necessary to frame the policies and standards but
their continuous monitoring for their adoption is very
important. With the passage of time, people modify these
policies to use them according to their benets and favors.
Certain agencies at the low level should be assigned works of
continuous monitoring and checking whether the policies
are being implemented in the right directions or not and the
reporting of agencies must be ensured.
Enforcing standards: It is evident from the history the main
reason behind the failure of world banks projects was the
lack of standards [69]. The lack of standards gives due
advantage to manufacturers for imposing their own standards. Enforcing standards to establish uniformity in standards is necessary for the growth of Indian solar industry also
[70].
Solar adopting strategies. It involves the identication of local
planning and motivational approaches within a broad energy
conscious community development technique that create
positive environment for introducing solar and other RET.
The challenges need attention are strategic issues, planning
tools, arrangements at organization level, legislation and
standards, incentive structures, public information and
exemplary municipal practices [71].
Creating awareness: Creating awareness among people about
the harmful effects of the traditional energy sources and
benets of newer and renewable sources can act as a strong
catalyst in the adoption of solar energy. People can be
motivated through print media, exhibition, eld demonstration, seminar, workshops, education and training. People
can be encouraged for installing solar lights on public
buildings, parks and streets etc [68].
Emphasis on R&D activities: R&D activities are the core engine
of a technology and product for its success e.g. batteries are
required with SET but use of these raises the cost of solar
power generation by 50%. The extensive research efforts and

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

345

Table 8
Implications of the present study.
S. No.

Supporting body

Useful factors

1.

Government organizations

2.

Personnel at decision making levels

3.

Developers

4.

Society

5.

Academicians

i. Understanding the challenges/barriers in penetration of solar energy in India.


ii. What are the sub-barriers affecting a particular barrier in solar energy diffusion in India?
iii. Which are the most and least prominent barriers in the diffusion of solar energy in India?
iv. Devising ways for eradication of barriers of Indian solar industry.
v. Preparation of series of steps or plans or strategies for solar power adoption in the country.
i. Formulation of policy and guidelines for solar technology adoption in India
ii. Preparation of strategy and framework to enforce the solar policies effectively for the betterment of society.
iii. Understanding the possible effects of a new policy designed for removal of a barrier.
i. To understand the potential benets and status of solar energy in India
ii. Development of action plan to set up solar power plants in India.
i. Understanding the need of solar energy in modern society
ii. Create awareness among Indian people and motivating them for solar power adoption
i. To conduct similar studies to nd barriers and ranking of other RES.
ii. Gives a possible view of thinking for analyzing the RET challenges for a country.

activities have led to the concept of Net Metering in solar


eld which eliminates the need of batteries. Net metering is a
bi-directional energy meter capable of registering both
import and export of electricity [22,72]. So with more R&D
activities, all technical challenges of this industry can be
easily sorted out and solar power can be made accessible to
each and every house in the country.
Undoubtedly, the adoption of these recommendations will
enable us to achieve the target of one Lakh MW solar power in
future. In summary, the present study is promising in number of
ways as discussed in next sub-section under Implications of
research.
7.2. Implications of the present study
The present study is highly benecial for government agency,
solar power projects' developers, personnel at decision making
levels, policy planners and solar industry in multiple ways as
depicted and discussed in Table 8.
Keeping in view the present study, several inferences can be
drawn as discussed in succeeding section.
8. Conclusions
In this investigation, rstly the barriers existing in the developmental path of solar energy is identied. Through extensive efforts,
total thirty six barriers are recognized which act as obstacle in the
development of solar energy. Based on expert's opinion these thirty
six barriers are categorized under seven main dimensions having
sub-barriers under them. The trajectory of development of solar
energy in Indian context is presented. AHP technique is used to
prioritize and rank the barriers to nd the inuence of each barrier.
Sensitivity analysis is used to validate the ndings of the AHP
method adopted. Based on its results, sensitivity analysis graph is
obtained considering overall ranking of the barriers. Several recommendations have been suggested that might help in diffusion of
solar energy in India. Indeed, this study might prove useful in
recognizing the challenges of solar industry and can prove to be a
milestone for the removal of the barriers. It will help in growth of
Indian solar industry to make its environment green, pollution free
and sustainable. The unique contribution of the present study enable
to achieve the several targets as summarized below:
1. It has been observed through the literature survey that studies
have been conducted for identication of barriers of solar energy but their analysis is lacking till yet. In this direction, present
study plays a pivotal role to address the same issue.

2. Through the use of AHP technique, barriers of solar energy have


been ranked in order to help the various agencies and bodies for
the removal of these barriers, this adds unique element in the
present investigation.
3. Present study might help Government of India in motivating
and encouraging its citizens to adopt green energies and is
perfectly synchronized with current efforts and slogans of present NDA government such as Make in India, Swachh Bharat
Mission and Clean Energy, Green Energy.
Certainly, the present study is an attempt for achieving the
mission of Make in India and is benecial for the government,
commercial organizations, society in decision making yet certain
limitations are reported in context of the present study.
1. The present investigation is based on the AHP method but
several controversies and shortcoming are listed in literature
regarding the technique e.g. on scale, on the estimation of priorities, on rank reversals and the number of comparisons [36].
2. The proposed structural model is based on the seven main
barriers having thirty six sub-barriers but other barriers may be
present and it does not represent the exhaustive list of barriers.
3. Proposed results are based on the literature review and pairwise comparisons based on the expert's opinions. So it may
represent the personal opinion over a complex issue and might
be judgmental in nature [72].
In fact, the issues stated above can be addressed in the future
studies by using various suggestions as stated below:
1. Other MCDM techniques such as TOPSIS, ELECTRE, VIKOR, and
ANP can be utilized in the same work and the obtained results
can be compared [60].
2. The present investigation may be validated by considering any
real life example or case-study [61].
In summary, it can be concluded that present investigation is
an attempt to devise a framework to help policy planners,
government agency and various apex regulating bodies to
realize the target of 1 Lakh MW solar power up to 2022 as set
by NDA government by recognizing and nding intensity of
barriers of solar energy in India. The present study enables to
overcome these barriers and devise a mechanism for development path for diffusion and penetration of solar energy in Indian context.
Let's join hand together and make concrete efforts to create a
history and set an example by adopting solar energy across the
country and making it Clean India, Green India.

346

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

Annexure-1. Phase 2: constructing hierarchy of sub-barriers


under main barriers of solar energy

Ranking of dimension 1: Institutional barriers in implementation of solar energy in India


Institutional barriers

IB1

IB2

IB3

IB4

IB5

IB6

Local priority weight

Rank

IB1
IB2
IB3
IB4
IB5
IB6

1
0.333
0.5
0.333
1
0.333

3
1
0.5
0.333
1
0.333

2
2
1
0.25
3
3

3
3
4
1
5
3

1
1
0.333
0.2
1
0.333

3
3
0.333
0.333
3
1

0.2802
0.1928
0.1009
0.0495
0.2518
0.1248

1st
3rd
5th
6th
2nd
4th

Maximum Eigen value 6.55053; C.I. 0.110106.


Ranking of dimension 2: Technical barriers in implementation of solar energy in India
Technical barriers

TB1

TB2

TB3

TB4

TB5

TB6

Local priority weight

Rank

TB1
TB2
TB3
TB4
TB5
TB6

1
0.5
1
2
3
2

2
1
1
3
2
3

1
1
1
0.5
1
0.5

0.5
0.333
2
1
4
3

0.333
0.5
1
0.25
1
0.5

0.5
0.333
2
0.333
2
1

0.1107
0.0882
0.1977
0.1267
0.2820
0.1947

5th
6th
2nd
4th
1st
3rd

Maximum Eigen value 6.68235; C.I 0.13647.


Ranking of dimension 3: Political and regulatory barriers in implementation of solar energy in India
Political and regulatory barriers

PRB1

PRB2

PRB3

PRB4

PRB5

PRB6

Local priority weighting

Rank

PRB1
PRB2
PRB3
PRB4
PRB5
PRB6

1
2
3
0.5
0.333
3

0.5
1
3
0.5
0.333
1

0.333
0.333
1
0.5
0.333
0.5

2
2
2
1
0.333
3

3
3
3
3
1
2

0.333
1
2
0.333
0.5
1

0.1230
0.1779
0.3182
0.1053
0.0639
0.2117

4th
3rd
1st
5th
6th
2nd

Maximum Eigen value 6.43147; C.I 0.0862934.

Ranking of dimension 4: Market barriers in implementation of solar energy in India


Market barriers

MB1

MB2

MB3

MB4

MB5

MB6

Local priority weighting

Rank

MB1
MB2
MB3
MB4
MB5
MB6

1
1
3
0.5
0.333
0.5

1
1
1
0.5
0.333
0.5

0.333
1
1
0.333
0.5
1

2
2
3
1
1
1

3
3
2
1
1
0.333

2
2
1
1
3
1

0.1944
0.2207
0.2590
0.0944
0.1234
0.1081

3rd
2nd
1st
6th
4th
5th

Maximum Eigen value 6.5668; C.I 0.113359.

Ranking of dimension 5: Social, cultural and behavioral barriers in implementation of solar energy in India
Social, cultural and behavioral barriers

SCBB1

SCBB2

SCBB3

SCBB4

Local priority weighting

Rank

SCBB1
SCBB2
SCBB3
SCBB4

1
0.25
0.333
1

4
1
2
3

3
0.5
1
3

1
0.333
0.333
1

0.3907
0.0962
0.1461
0.3640

1st
4th
3rd
2nd

Maximum Eigen value 4.04582; C.I 0.0152731.

Ranking of dimension 6: Finance barriers in implementation of solar energy in India


Finance barriers

FB1

FB2

FB3

FB4

Local priority weighting

Rank

FB1
FB2
FB3
FB4

1
2
3
0.5

0.5
1
1
0.333

0.333
1
1
1

2
3
1
1

0.1797
0.3471
0.3156
0.1576

3rd
1st
2nd
4th

Maximum Eigen value 4.30656; C.I 0.102185.

S. Punia Sindhu et al. / Energy 100 (2016) 332e348

347

Ranking of dimension 7: High cost of capital barriers in implementation of solar energy in India
High cost of capital

HCC1

HCC2

HCC3

HCC4

Local priority weighting

Rank

HCC1
HCC2
HCC3
HCC4

1
0.5
1
1

2
1
0.5
1

1
2
1
2

1
1
0.5
1

0.2976
0.2454
0.1760
0.2810

1st
3rd
4th
2nd

Maximum Eigen value 4.18552; C.I 0.0618392.

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