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| Country/Tariff | Roof-Top | Ground-Based | BIPV | Term | |
|---|---|---|---|---|---|
| India | €0.29/kWh |
€0.29/kWh |
€0.29/kWh |
20 years |
State-led incentives in India are helping the solar industry flourish. According to figures released by market research company, Bridge to India, the PV industry is gaining ground, with installed capacity growing from 24MW at the end of 2010 to 153MW at the end of 2011. The market is supported by FiTs to provide an initial thrust while the introduction of the Renewable Energy Certificate (REC) mechanism and Renewable Purchase Obligations (RPOs) will help India's progression within the solar market. However, reverse-bidding auctions in some areas are reducing the profitability of FiTs.
Currently, a unit of power from an off-grid solar system currently costs about €0.22 - €0.24 per kWh. The cost of grid electricity is about €0.08 - €0.10 per kWh, but competitive by comparison to diesel generators €0.20 - €0.30, making solar an increasingly attractive energy solution.
Jawaharlal Nehru National Solar Mission
Approved on January 11, 2010, by the National Action Plan on Climate Change, the JNNSM aims to establish India as a global solar leader, to reach a target of 20GW of solar capacity by 2022 from the 81MW currently being produced.
JNNSM is divided into three phases with the ultimate goal of reaching grid parity with coal by 2030.
Phase I
Date to be achieved: 2012 and 2013
Target capacity: 1100MW
Phase II
Date to be achieved: 2013 to 2017
Target capacity: 3000-10,000MW
Phase III
Date to be achieved: 2017 to 2022
Target capacity 20,000MW
The JNNSM also hopes to deploy 20 million solar lighting systems for rural areas, achieve 15 million square meters by 2017 and 20 million by 2022 of solar thermal collector area. Its aim also takes into consideration manufacturing; it hopes to reach 4-5GW equivalent of installed capacity by 2020, including the manufacture of polysilicon to annually make about 2GW capacity of solar cells. In terms of off-grid solar projects, JNNSM has set a target of 1000MW by 2017.
The incentives offered are as follows:
• Zero import duty on capital equipment, raw materials and excise duty exemption
• Low interest rate loans, priority sector lending
• Coal tax
• Budgetary Support for MNRE
According to the Ministry of New and Renewable Energy, so far, 1000MW of projects – 500PV and 500CSP across batch 1 and batch two of phase 1 – have been sanctioned during 2010-2011.
The state of Gujarat was the first to launch its own solar policy in 2009, with the intention of remaining operative until 2014. The initial target was to achieve 500MW; however, given the level of interest, the government has allocated projects with 935MW. It is the only policy which has awarded projects a fixed FiT on a first-come-first-served basis.
| Levelized tariff | For first 12 years | For next 13 years | |
|
For projects commissioned before January 28, 2011 |
€0.20 per kWh | €0.22 per kWh | €0.08 per kWh |
|
For projects commissioned post January 28, 2011 |
€0.16 per kWh | €0.18 per kWh | €0.10 per kWh |
Launched in July 2011, it has a target of 12GW to be installed by 2022. In the first phase, PV projects worth 300MW will be awarded through a competitive bidding process which took place at the end of 2011. Projects will then need to be installed by 2013. Due to its high irradiation levels and availability of space, Rajasthan will likely become the hub of solar power generation in India.
Also announced in July 2011, this policy has a target of 350MW by 2016. Karnataka is looking to attract investors that are interested in developing smaller plants for a more decentralized energy supply.
The Central Electricity Regulatory Commission has introduced RPOs particularly for solar power although it does also apply to other renewables. Solar RPOs are the minimum amount of solar energy that obligated entities – distribution licensees, open access and captive consumers (1MW and above) – have to have as a percentage of their total available electricity. Currently these are set at around 0.25% of the total consumption of state utilities and vary across states.
These can be generated by any developer who sells solar power to the public grid at the Average Pooled Purchase Cost of the relevant distribution utility or sells solar power to third-party consumers at a mutually decided price. RECs are not applicable to projects in which power is sold to the grid at a preferential tariff. Power producers who have begun to sell power at a preferential FiT are not then allowed to later switch to the REC Mechanism.
