SOLAR PV MARKET

DEVELOPMENT In India

Shirish Garud
TERI
Solar photovoltaics
Research and
Development

Demonstra
tion

Commercializa
tion
 Growth in Solar PV Global scenario

3000 100
Annual Production (MW)

Cost per watt (2007 US$)

78.39
2500 80
2000
60
1500
Growth in Solar PV 40
1000
500 Global scenario 20
3.84
0 0
76

79

82

85

88

91

94

97

00

03

06
19

19

19

19

19

19

19

19

20

20

20
Cost per w att (2007 US$) Annual production (MW)

Source : Compiled by Earth Policy Institute along with Worldwatch Institute

 Indian Solar PV market

Subsidized Non-Subsidized

PV products
Solar cells Solar modules

Individual owners

Corporate/ System integrators, exports

Government

Community ownership

Indian Solar PV Market

Solar PV Products in Indian market

Large variety of products designed to meet
various needs. Few examples are given
below
(Typical capacities are indicated in the bracket)
 Solar home systems (37 to 74 Wp)
 Solar pumps (1 to 2 kWp)
 Solar street lights (36 to 74 Wp)
 Solar power plants individual households ( 1-5
kWp)
 Solar lanterns (2 to 15 Wp)
 Solar power plants for villages (1 kWp to 110
Kwp capacity)
 Grid connected solar power plants (1MW and
above)
 Category wise use of PV Module in India

Others
Telecom 12%
7%
Pow er Plant
Pump Ex ports
3%
3% 66%

Street Light
2%

Home Light
5%

Lantern
2%

335 MW aggregate capacity; 14,00,000 SPV Systems

Source : Ministry of New and renewable Energy, GoI, 2007 (as on 31 Mar 2007)

6
Market drivers and barriers

Drivers
 Demand for electricity to meet essential requirements
like lighting, entertainment, water pumping,
communication etc
 Subsidy schemes
 Low interest loans
 Micro-credit schemes

Barriers
 High costs
 Lack of marketing efforts
 Lack of supply and service network
 Lack of Customized products
 Subsidy schemes
Market characteristics

Individual users
 Mostly from rural and semi urban areas
 Need for electricity is main driver of this
market
 Major products include- solar home
systems, solar lanterns, solar water
pumps
 Markets for non-subsidized products is
increasing in last five years
Market characteristics

Corporate / governments
 internet kiosks in rural areas

E- choupal – internet based information service
developed for farmers
 Solar systems for niche applications

Community owned systems
 Solar systems such as power plants, pumps to
meet the energy demand of remote
communities

Mostly subsidy driven market

In recent years low interest loans assisted /
replaced the subsidy mechanism
Some Observations

Share of home lighting systems is

increasing in recent years

Solar lanterns are also becoming
popular due their low costs and
portability

Multi-use products such as home
lighting systems with connection for
fan or transistor/ TV are preferred
 Thrust areas for Future

MW scale SPV systems

Green power generation system

Buildings utilizing solar PV systems

Make domestic SPV market
competitive through market
development

Solar ingots manufacturing

Thin film materials / technology
development
 Summary

Solar PV has tremendous market potential
provided
 Customized products are designed
 Cost barrier is tackled successfully especially
for small grid connected PV power plant
 Suitable financing schemes are offered

Large market potential for smaller affordable
systems
 Niche’ markets

Bringing down capital costs is key to tap the
market

In spite of high costs solar PV markets are
increasing and sustainable growth is expected
Acknowledgement

Shirish Garud, TERI

shirishg@teri.res.in

Cell - 09811602069