300 GW solar and our hurdles

These hurdles have the potential to derail India’s progress towards a more sustainable energy future. Leaders from the solar and wind energy businesses are examining the Solar Energy development potentials, currently installed capacity, and prospects. Despite several obstacles and difficulties, they also expressed their optimism for a bright future.
India’s solar sector has seen impressive growth over the past decade, with installed solar capacity increasing from just 10 MW in 2010 to over 40 GW in 2021. The government’s ambitious target of reaching 100 GW of solar capacity by 2022 has significantly driven this growth.
However, the sector has also faced several challenges and hurdles. One of the most significant challenges has been financing, as many solar projects require a significant upfront investment. The government has addressed this by establishing institutions such as the Solar Energy Corporation of India (SECI) to facilitate project financing.
Barriers to India’s 300 GW Solar energy target
The progress made by the Indian government in its goal to install 300 GW of solar electricity by 2030 is admirable. However, achieving the goal of becoming a 500 GW renewable energy country requires overcoming various obstacles. However, Amit Barve, Business Unit Head of Solar at Panasonic Life Solutions India, commented, “These challenges include land acquisition, financing, grid integration, policy and regulatory framework, and technological advancements. The lack of research and development across the entire value chain has hindered localisation efforts and increased dependence on external sources.
Gautam Mohanka, the Managing Director of Gautam Solar, has highlighted difficulties in becoming a 500 GW renewable energy country. He notes that the residential rooftop market, the largest market for a captive and collocated generation, has not performed as expected. Furthermore, constraints and delays in project execution have negatively impacted potential investors’ perception of risk versus return.
Ajay Devaraj, the Secretary General of the Indian Wind Power Association, points out that the momentum for capacity additions to wind energy has been adversely affected by various issues. Addressing the above-discussed challenges is essential for the country to achieve its goal of becoming a 500 GW renewable energy country by 2030.
To accomplish this goal, policies that offer long-term visibility and certainty must be implemented. This will accelerate the development of renewable energy projects and attract more investment. With the Indian government’s continued efforts and a concerted effort to address these challenges, the country can achieve its goal of becoming a leading renewable energy nation by 2030.
Role of policies and regulations in energy self-sufficiency
India has made significant strides towards achieving its green goals, with solar capacity increasing from 7 GW in 2016 to 64 GW in January 2023. This is due to several factors, including government policies and incentivisation schemes, better public awareness, and the decreasing cost of solar power technology.
Barve points out some positive regulatory triggers that are helping India achieve self-sufficiency in terms of electricity. These include the COP26 summit’s declaration of a target by the GOI to achieve net-zero goals by 2070, investment funds of around Rs. 350 billion towards net-zero targets announced in the Union budget, and net-metering support and subsidies for the residential sector. Additionally, promoting indigenous production through the PLI program will help lower the dangers associated with disruptions to the global supply chain.
Mohanka lists several strategies through which government policies and regulations contribute to the goal of electricity generation and consumption self-sufficiency. These include various incentives, schemes, and subsidies to promote the development of renewable energy projects, net metering and feed-in-tariff policies, energy efficiency standards, and several reforms to the electricity market. Continuing the discussion, Devaraj adds that several studies have been conducted by the government, culminating in well-researched reports that track growth in demand across consumer types over a 10-year horizon. These reports are also accompanied by the growth needed in electricity generation to meet the demand. The government is also receptive and responsive to fine-tuning policies and regulations to foster electricity generation growth.
Overall, India is making significant progress towards achieving its green goals, and the government is taking several steps to promote renewable energy and electricity self-sufficiency.

Challenges for Indian companies manufacturing in India
The solar industry in India has the potential to produce 25 GW of solar modules, but there are still challenges to overcome. The value chain ecosystem still needs to be sufficiently established, leading to a heavy reliance on imported raw materials. This makes production costly and susceptible to delays and poor quality.
One of the main challenges facing domestic producers is the need for more skilled labour. There need to be more technical training facilities and educational institutions to produce enough skilled workers to support the rising manufacturing capacity. The skills gap must be addressed urgently to prevent it from hampering industry expansion.
The inadequate infrastructure in India is another significant challenge faced by Indian companies. Poor infrastructure leads to delays in manufacturing and distribution, increased costs, and reduced competitiveness. The lack of skilled labour is also a challenge, resulting in a shortage of skilled workers, increased training costs, and reduced productivity. The regulatory environment in India is complex and challenging, with several regulations and permits required for manufacturing and distribution, leading to delays, increased costs, and reduced competitiveness.
The solar industry faces further challenges in managing its supply chains, particularly the availability of raw materials, transportation, and logistics, resulting in disruptions in the supply chain. Access to capital is also a stumbling block for Indian companies, particularly micro, small, and medium enterprises (MSMEs), limiting their ability to invest in R&D, expand operations, and compete in the market.
In addition to these challenges, Indian companies face intense competition from domestic and international players, resulting in price wars, reduced profit margins, and reduced competitiveness. Although several Indian companies have announced net-zero targets and are committed to reducing their carbon footprint, they face challenges in making this happen due to the year-round availability of stable green energy to run their operations.
To address these issues, there is a need for solutions such as storage systems and/or the sizing of green energy sources, but they are currently prohibitively expensive. Until the costs come down to a reasonable level, year-long banking of renewable energy is a must. Overall, it is imperative to address the challenges faced by the solar industry in India to make it more competitive and sustainable in the long run.
Indigenous tech for high-quality cells and module
The Indian government has introduced various policies to promote the solar business and support the “Made in India” movement, including the PLI and BCD to enhance the production of raw materials in India and impose customs duties on imported materials. Barve notes that these initiatives have provided many business owners and Indian conglomerates with confidence to enter the component manufacturing industry across the entire value chain, resulting in state-of-the-art manufacturing facilities producing high-quality, modern solar products for Indian consumers.
Mohanka, on the other hand, is utilising several technologies to assist in developing indigenous, high-quality solar modules and cells. The conventional polycrystalline technology has been largely replaced by the high-efficiency monocrystalline passivated emitter and rear contact (PERC) technology, which has become the dominant technology. Other technologies, such as multi-bus bars, half-cut cells, and bi-facial technology, have also contributed to this shift. The key to this change has been the advancement and implementation of robotics and automation in manufacturing cells and modules. Gautam Solar is one of the few companies that recognise this. They are actively using the latest top-line machines and technology, including a dedicated production line for monocrystalline modules, to help India achieve its solar energy goals with high-efficiency modules.
Prospects for solar and wind energy
Solar and wind energy are looking up as renewable sources of energy. They have now become more competitive with traditional fossil fuels. Many governments and companies are investing in and committing to renewable energy targets for solar and wind power. For instance, the Indian government has set a target of 500 GW of renewable energy. Energy storage and grid management technology advancements make integrating solar and wind power into existing energy systems easier. This will further increase their competitiveness and reliability.
The potential for wind energy is massive. According to Devaraj, there is a potential of 695 GW at a hub height of 120 meters, and there is scope for offshore wind. Wind-solar hybrids offer higher CUF than either pure solar or pure wind. There is a lot of potential to exploit this benefit, and the unit costs in India are lower than in other countries. Therefore, India is an attractive destination for solar and wind energy investments.
Mohanka, one of India’s leading solar module manufacturers, is optimistic about the renewable energy boom. They are expanding their annual solar module production capacity to 1 GW by FY2024. This will help boost the capacity of indigenous solar modules in the country and help India realise the “Make in India” and “Aatmanirbhar Bharat” vision.
Solar energy has become very popular in India and globally, and thanks to economies of scale, it has now reached grid parity in most countries. Counting on the development happening in the is optimistic that solar energy will continue to be an attractive energy source due to its immediate availability, inexpensive power, and significant environmental benefits. The installed capacity of solar and wind power in India and worldwide will continue to rise year over the next two decades.