India is constantly getting stronger in the solar energy market. India is competing with China to increase stake. The reason for this is that India is able to fulfill the growing need of domestic electricity by selling its own citizens. Government subsidy and tax exemption are also being supported in this area. Therefore, Indian companies hope that the American tariff may affect their exports, but they can complete this deficit from the domestic market.
After increasing coal production for many years, India has established so much solar capacity in the last five years, which can provide electricity to crores of houses. However, India still has a big challenge. China makes more than 80% of solar parts in the world and India’s companies also have to import many essential raw materials from China. America is also presenting a tough challenge for India’s solar companies. President Donald Trump imposed 50% tariff on Indian goods last month.
Help making domestic demand
India’s huge demand for domestic clean energy is helping solar companies to overcome this pressure. Energy experts say that the increasing need for solar electricity in India will reduce the impact of American tariffs. In the recent financial year, about one-third of the solar panels made by India were sold to the US. The earnings from the US have helped Indian companies improve supply chains and reduce dependence on Chinese parts. Experts say that even if sales in America slow down, India’s domestic needs and big goals of clean energy will give them buyers in the country.
Companies are constantly increasing capabilities
The company named Jaipur based Renew in the solar energy sector forms so many solar modules every year, which can generate 4 gigwot electricity. This is equal to the energy needs of about 2.5 million Indian homes. The factory, which started about 2 years ago, employs about 1,000 people and has become a symbol of India’s solar power industry. India’s ability to make solar parts in the financial year ended in March was more than doubled. Similarly, Hyderabad company Vega Solar also says that after the Kovid-19 epidemic, the company has changed its customer base. Prior to the epidemic, 90% of the business was exported and only 10% on domestic supply, but now it has completely reversed.
Government policies and demands are increasing the speed of solar industry
India is one of the highest carbon emission countries in the world, but is promoting the use of clean energy. Experts say that the cost of solar energy has now been halved compared to new coal -powered new power plants. Apart from this, the abundance of sunny days in India has increased the solar energy capacity established in the last 10 years by 30 times. Around 170 GW of Renewable Energy Project in India is currently in the pipeline, mostly solar and will be completed in the next few years. The country has set an ambitious target of 500 GW of clean energy by 2030. Experts from IEEFA and JMK Research also believe that in the next two years, India’s solar module demands may be higher than domestic sales, as many modules are being exported. India has been importing a large amount of solar modules from China.