Renewable energy sector in India: forecasting trends in commercial and residential photovoltaics

Abstract

Over the past few years, India has seen a surge in energy demand owing to its increased economic development and the energy consumption that follows with it. With the prices of non-renewable sources of power on the rise and that of renewables decreasing, the need for improved access to energy and mitigate climate change, it is expected that in the coming decades renewables will see the most investment in the energy sector. The Indian Government with its pledge at CoP26 to add 500GW of renewable power by 2030 and achieve net-zero emissions by 2070, has taken several initiatives to attract domestic and foreign investments to facilitate this transition. And the renewables market is only expected to continue its growth. Currently, the renewable industry in India, constituting 38% of the overall installed power capacity, is the fourth most attractive in the world. While the Indian solar market accounts for 12.7% of the current energy production, it is expected to grow at 8% CAGR over the next five years. With added impetus from governments, growing trends of renewables, an increased portion of the same taken by solar (as per government targets) and the current prominent players like Tata Power, BHEL and many others consistently implementing strategies focusing on the capacity expansion and innovation, the solar power sector in India is ripe for investments. While, solar photovoltaics are the biggest movers in this field and although most sectors are seeing great growth, the residential rooftop solar is not growing at the pace expected. As more capital becomes available to individuals in India, this could be one of the great investments to be carried out – financially, socially for status, environmentally and because it is the right thing to do. This study focuses on Tier 2/3 cities in India to study the issues faced by consumers before, during and after solar photovoltaics are installed. We will map the consumer journey and the supply chain for solar photovoltaics. We will also identify the problem areas, narrow down on potential problems that can be solved. We would identify the feasibility, desirability and viability of various ideas to solve the final problem. Next, we would design the business strategy with the business canvas and service design aspects.