The Rise of Solar Energy in India
Of late you don’t have to look far in India to see one of the thousands of solar electric systems providing clean power to homes, businesses, schools and government buildings. They’re practically everywhere!
Solar energy in India has grown rapidly with time. The state has maintained a gradual increase in solar energy installation with homeowners being on the front line to go green. Since the year 2007, India solar installations have increased from less than 50 megawatts to over 1600 megawatts back in 2015. You can imagine with the new solar technologies that makes solar products affordable where India will be in 2050. This solar growth was aided by the Renewable Portfolio Standard which requires 22.5% of India power to come from renewable energy sources. This website has a good article on the solar power capacity of India.
Maybe the reason you weren’t aware of India’s solar energy status is because when you think of the sunniest spots in the United States, India might not readily come to mind. Which makes sense because it’s not the sunniest place across the nation. In fact, its sun statistics are rather average. India averages about 4.5 peak sun hours per day and experiences about 56% of the year under full or partial sun. These statistics are far better than less sunny places, like Seattle, Washington! And with 204 sunny days per year, India boasts about 918 total sun hours annually on which you can harvest to convert into energy to power your home! So, having installed solar energy system on your roof top is both significant to you and to the state in general.
India’s Solar Incentives
India has some of the best solar incentives around, so you’ll be able to benefit from some great cuts off the initial price of your system. Though, the biggest cut you’ll receive comes from the federal government.
The Residential Renewable Energy Tax Credit is a huge savings generator and incentive for installing a solar energy system. Under this tax credit, you get 30% off the total price of your solar energy system (that even includes installation – everything) and there is no cap on price. That means on assumptions let’s say for a $16,250 system, you’ll immediately get $4,875 off, bringing your total to $11,375! It should be noted that these types of savings won’t be available forever. Solar Renewable Energy Credits (SRECs) have been the #1 incentive for India solar owners; this will be phased out when the state hits 5.1% solar. Currently India is at just under 4%, the threshold will likely be hit in 2019 or 2020, and this leaves you with precious little time for solar owners to take advantage of the program. Let’s put it bluntly: If you miss out on the SREC market, you’re leaving thousands of dollars on the table.
Meanwhile as an average homeowner in India, you will reap significantly in terms of rewards over the next ten years from the SRECs. For sure it pays to go solar sooner.