Step into the world of solar energy, where a remarkable transformation is underway. In the context of solar panel price trends, annual solar installations soared to an impressive 183 GW in 2021 and are likely to be projected to reach an astonishing 450 GW by 2030.
India, too, has experienced a meteoric rise, with cumulative installed solar capacity surging from 161 MW in 2010 to an impressive 64.38 GW as of February 2023. The driving force behind this phenomenal growth?
The compelling appeal of solar panel price makes it the most cost-effective electricity generation source in several major countries. So, what lies ahead for the solar industry? Let’s uncover the solar panel price trends in 2023, shaping its path in the coming year.
Driving Factors Behind Indian Solar Panel Price Trends
The Indian solar energy market has witnessed remarkable growth, propelled by a multitude of factors. Curious to know what’s behind this surge? Here, we uncover the driving forces that have fueled the expansion of the Indian solar energy market, with a spotlight on solar panel price.
Government Initiatives & Policies
The Grid Connected Rooftop Solar (RTS) project, initiated by the Ministry of New and Renewable Energy (MNRE), aims to make it a reality with affordable solar panel prices.
With a target of achieving a cumulative installed capacity of 40,000 MW, this program offers Central Financial Assistance (CFA) and incentives to both residential consumers and DISCOMs.The MNRE has simplified procedures and introduced virtual net metering to facilitate the adoption of rooftop solar.
Through mechanisms like the National Portal for Rooftop Solar and State DISCOMs portal, residential consumers can benefit from subsidies and transfer of financial aid directly to their accounts, making solar panel price even more accessible. Brace yourself for a solar-powered transformation!
Falling Solar Panel Price
In recent years, the solar panel price has been on a downward trajectory, bringing solar energy within reach for many. In India, the average solar panel price per watt hovers around Rs.70-80. However, it’s important to note that this price is influenced by several factors, including the type of panel, brand, and rating.
The same pricing dynamics apply to complete solar systems, which fall into three categories: off grid, hybrid, and on grid solar system. Each system type has its own price per watt. Fortunately, as solar panel price continue to decline steadily, solar energy becomes more accessible and economically viable for all. Let’s explore the sun-powered possibilities!
Increasing Energy Demand
India’s growing population and thriving economy have fueled a surge in energy demand. Despite facing numerous challenges, India has made remarkable strides in its energy development journey, with a special focus on solar power.
As the solar panel price trends in 2023 indicate that India is poised to surpass China in solar energy capacity, India is on a spree for greener alternatives for the future.
The adoption of highly-efficient LED lighting, widespread electricity connections, and a massive expansion in renewable energy sources have improved the lives of millions of Indians.
Favorable Solar Resource Potential
Throughout history, Indians worship SUN as the giver of life.
Paradoxically, now we’ve come to understand its potential as a powerful energy source. India is an abode of abundant solar energy potential, receiving an astonishing 5,000 trillion kWh of energy annually across its land area, with many regions enjoying 4-7 kWh per sq. m per day.
This makes solar panel installation an excellent choice for large-scale and residential installation in India, offering scalability and the ability to generate power on a distributed basis with short lead times.
From rural applications to meeting energy needs in both urban and rural areas, solar panel installation holds immense promise.
Currently standing 4th globally in solar PV deployment, with an installed capacity of approximately 61.97 GW as of November 30, 2022, India has achieved grid parity with highly competitive solar tariffs.
Improved Financing Options
Discover the perfect blend of sustainability and affordability with solar panel installation for your home. With solar energy, homeowners can afford convenient and cost-effective financing options that make transitioning to solar technology a breeze.
With instant EMI options featuring low-interest rates and no collateral required, financing your solar panels for home cost has never been easier in India.
Power your residence or business with a solar panel system that meets all your electricity requirements with a one-time investment. For example, Freyr Energy offers solar panels for home cost depreciation benefits with tax savings and EMI bills lower than your traditional electricity bills.
It’s time to make a smart investment in sustainability without any risk. Choose solar panels for your home at a cost that fits your budget and paves the way for a greener future.
Grid Integration & Power Sector Reforms
The Indian government is actively working towards the integration of solar power into the national grid, accompanied by meaningful power sector reforms like net metering and feed-in tariffs. With ambitious energy transition goals, India aims to achieve 500 GW of non-fossil fuel electricity installed capacity by 2030, ensuring that cleaner fuels constitute 50% of the energy mix.
To plan the required transmission system for this massive undertaking, the Ministry of Power established a high-level committee consisting of key representatives from various organizations. This committee, in consultation with states and stakeholders, has developed a comprehensive plan titled “Transmission System for Integration of over 500 GW RE Capacity by 2030.”
Key Solar Trends Predicted to Define the Industry in 2023
Expansion of Rooftop Solar Panels
Lack of accessible financing has been a major hurdle in the growth of rooftop solar. Consider a 5 kW solar rooftop system – an off-grid solar system connection costs around Rs 5 Lakh, while an on-grid solar system system costs around Rs 3 Lakh. In the absence of solar financing options, people had to resort to personal or home finance at higher interest rates.
Additionally, India now boasts a centralized platform, the National Rooftop Solar Portal, for applying and availing of subsidies. Previously, subsidy processes varied across states, creating confusion. With this centralized platform, accessing information and subsidies becomes streamlined, playing a pivotal role in driving rooftop solar adoption.
Adoption of Energy Storage Solutions
A groundbreaking on grid solar system powered by a lithium-ion battery energy storage system has been activated in Delhi’s Rani Bagh.
While relatively small compared to global grid-scale systems, this innovative solution offers valuable grid services and benefits the local community. As India’s first grid-connected community energy storage system, it sets the stage for the wider adoption of similar on grid solar systems nationwide.
Increased Use of Smart Grid Technology
By utilizing digital technology and two-way communication, the smart grid revolutionizes the way we manage electricity.
With enhanced efficiency, rapid power restoration, reduced costs, and increased integration of renewable energy, the on-grid solar system paves the way for a reliable, sustainable, and economically viable energy future.
It also offers streamlined electricity transmission to lower power rates, improved security, and a more resilient grid that safeguards essential services during blackouts.
Growth of Large-Scale Solar Farms
Surpassing expectations, India achieved its ambitious solar targets ahead of schedule, with over sixty thousand gigawatts of solar capacity installed by 2023.
The Pavagada Ultra Mega Solar Park serves as a shining example, covering an expansive area comparable to Manhattan. Through an innovative “plug and play” approach, international corporations like Adani, Tata, Fortum Solar, and Azure played a pivotal role in developing the park, delivering impressive power output and illuminating the grid with each sunlit moment.
Discover the Affordable prices of Freyr Energy’s Residential Solar Solutions!
Considering an on grid solar system for your home? Affordability is a key concern, and at Freyr Energy, we understand that. That’s why we are introducing finance options to make the transition to solar energy easier than ever. With our quick and easy solar loan options, such as Zero Cost EMI and hassle-free quick approvals, you can embrace renewable energy without breaking the bank.
Generate Your Pricing Quote with Sunpro+ App: With our user-friendly Sunpro+ app, you can generate a customized pricing quote based on your specific solar system requirements. It’s as simple as a few taps on your smartphone. We believe in transparency and empowering our customers with the information they need to make informed decisions.
On-Grid Solar System Pricing by State: We offer competitive pricing for on-grid solar systems in various states. Here’s a glimpse of our prices (before and after subsidies) for 3kW and 5kW systems in particular locations:
Net Metering and Additional Services: At Freyr Energy, we take care of all the net metering charges and other services involved in your solar installation. Our goal is to provide a hassle-free experience, so you can sit back, relax, and enjoy the benefits of clean, renewable energy.
Please note that the solar subsidy scheme is applicable for residential solar installations up to 10kW.
Start your solar journey today! Contact us to learn more about our on-grid solar system for home and financing options.
Conclusion
With Freyr Energy’s affordable on-grid solar system, you can make the switch to clean energy without compromising your budget. Our finance options, user-friendly app, and competitive pricing by the state make solar power accessible to homeowners like never before. Embrace sustainability, save on electricity costs, and contribute to a greener future with Freyr Energy’s on-grid solar solutions.
Frequently
Asked Questions
The Indian solar industry has a significant impact on the economy, contributing to job creation, reducing dependence on fossil fuels, and attracting investments, with over 60,000 MW of solar capacity installed as of 2023.
The solar panel systems in India primarily use photovoltaic (PV) technology, which converts sunlight into electricity through the use of solar cells made of semiconductor materials like silicon.
The solar panels market in India has experienced rapid growth, with a compound annual growth rate (CAGR) of over 40% in recent years, driven by favorable government policies, declining solar panel costs, and increasing awareness of renewable energy benefits.
Southern regions of India, such as Telangana, Andhra Pradesh, and Karnataka, are expected to adopt solar power systems at a fast rate due to favorable solar resources, supportive policies, and ambitious renewable energy targets.