Context: On 15 February, 2015, Prime Minister Narendra Modi made an interesting observation in his inaugural speech for the first RE-Invest global summit in New Delhi. He remarked that Indian energy sector has been thinking in terms of Mega Watts (MW), but for the first time, India had started talking about Giga Watts (GW). It was inconceivable that India aimed at 100 GW of installed solar power capacity by 2022, given that the entire country had under 3 GW of existing installations when the Modi government took over. Yet, the ambitious target set clearly signalled the government’s intent to make solar energy an integral part of Indian energy security strategy. India has managed to hit about 35 GW in installed capacity till now. One major gap is rooftop solar, which has not progressed much. So while adding 65 GW of solar capacity in two years looks tough, opening up the rooftop solar market nationwide can help push the envelope. But even this current progress from 3 GW to 35 GW was not easy. One of the projects which gave impetus to this journey was the Rewa Ultra Mega Solar Ltd (RUMSL) solar plant, inaugurated by PM Modi on 10 July. 

About Asia's largest solar power project in Rewa

• The solar plant will provide electricity to the industries in Rewa and also to the metro rail in Delhi. This is the first solar project in the country to break the “grid parity barrier”.
• Developed by- The solar project was developed by Rewa Ultra Mega Solar Limited (RUMSL). The company is a joint venture of Solar Energy Corporation of India and Madhya Pradesh Urja Vikas Nigam Limited MPUVN).
• It consists of three solar generating units of 250 MW each located on a 500-hectare plot of land situated inside a Solar Park having a total area of 1500 hectare. It is one of the largest single-site solar plants in the world. 
• The Rewa Solar Power project has received the World Bank Group President’s Award for innovation and excellence and was included in the book ‘A Book of Innovation: New Beginnings’.
• 24% of energy from the project will be supplied to Delhi Metro and the remaining 76% will be supplied to the State DISCOMs of Madhya Pradesh.

What is Grid parity?

• It is the situation when an alternative energy source can generate power at a cost of electricity that is less than or equal to the price of power from the electricity grid.
• Grid parity is the point when the cost of the alternative energy becomes equal to or less than electricity from conventional energy forms like fossil fuels. 
• It’s one of the most important things energy analysts look at when determining how economically viable an alternative energy form is for widespread development and adoption.

Solar Sector in India
As on April 30, 2020, the installed renewable energy capacity in India stood at 87.26 GW, of which, solar comprised 34.81 GW.
India has set a target of achieving 175GW of renewable energy capacity by 2022. This includes:

• 60 GW from wind power,
• 100 GW from solar power (100GW = 60 GW of utility-scale projects (both solar PV and CSP) like solar parks + 40 GW of rooftop solar applications for commercial users and households)
• 10 GW from biomass power
• 5 GW from small hydro power

India’s Nationally Determined Contribution

• The GoI in its submission to the UNFCC on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel-based energy resources.

Issues and Challenges in the Solar Sector
Dependence on Imports

• Lacks manufacturing base for solar components and systems.
• Heavy dependence on imported solar cells and modules, mainly from China.
• Issue of Renewable Purchase Obligation (RPO): There is lack of enforcement of RPO regulations and absence of penalties when obligations are not met. Many of the state DISCOMs (distribution companies) do not comply fully with their RPO targets.
• Rooftop Solar: Homeowners at large have not been installing solar panels at roof top. This is because small deployments naturally cost more than grid-scale farms. Homeowners do not generally consume all the energy it generates and are being unable to sell it.
• Investment: Issues such as uncertainty around import duties and future tax rates around purchasing power agreements (PPAs) have hampered investment
• Technological challenges– e.g. temperature sensor failures in PV cells, grid instability
• Land scarcity hindering establishment of large solar parks.
• Initial Cost: The high initial cost of solar PV systems is one of the most significant barriers to PV adoption. However, as the initial cost of PV system decreases and the cost of conventional fuel sources increases, these systems will become more economically competitive.
• Energy Storage: Offgrid PV systems typically use batteries for storing energy, and the use of batteries could increase the size, cost and complexity of the system.
• India's solar waste is estimated to be around 1.8 million by 2050 also needs to be tackled.

Government Initiatives to Promote Solar Power
National Solar Mission: Launched in 2010, it aims to achieve 100GW capacity by 2022. It is aimed at reducing the cost of solar power generation in the country through

• long term policy;
• large scale deployment goals;
• aggressive R&D;
• domestic production of critical raw materials, components and products, as a result to achieve grid tariff parity by 2022

Grid Connected Rooftop and Small Solar Power Plants Programme: It aims at installation of grid connected roof top solar systems from 1 kWp to 500 kWp capacity in residential, commercial, institutional and industrial buildings.

• Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI) Scheme: Financial Incentives to be provided to the beneficiary for installing solar rooftop projects.
• Several schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan Yojana (PM-KUSUM), CPSU (Government Producers) Scheme - Phase II and Solar Rooftop Phase II program aimed at the improvement of the generation as well as the adoption of solar energy in the country have been introduced.
• The Indian Renewable Energy Development Agency (IREDA) is a Non-Banking Financial Institution under the administrative control of this Ministry for providing term loans for renewable energy and energy efficiency projects.
• National institute of solar energy is created as autonomous institution under MoNRE is apex body for R&D.
• Promotion of canal bank and canal tank solar infrastructure.
• Renewable purchase obligation for large energy consumer customers.
• National green energy programme and green energy corridor.

About International Solar Alliance (ISA)

• ISA is partnership of solar resource rich countries to address their special energy needs and provide a platform to collaborate on development of solar energy resource.
• It is an intergovernmental body registered with the United Nations under Article 102 of the UN Charter.
• It was jointly launched by the Prime Minister of India and the President of France in 2015 at UNFCCC CoP 21 Paris, France.

Road Ahead

• India should plan a green deal, on the lines of what the EU has committed itself to: that future growth and employment should align itself to environmental and sustainability objectives, particularly in energy production.
• India needs to enhance domestic manufacturing of solar components by having integrated policies and providing low cost financing to industries.
• India should look at emerging trends in deploying solar innovatively. These include newer technologies such as aesthetic photovoltaic window and roof tiles for buildings, multi-role urban structures, and greater use of residential and commercial buildings to deploy more panels.
• Strong financial measures are required to finance the solar projects, innovative steps like green bonds, institutional loans and clean energy fund can play a crucial role.
• Promotion of research and development in renewable energy sector, especially in storage technology and proper mechanism should be provided to tackle China's dumping of solar equipments.
• Framework to avoid unnecessary delays in policy decision making and implementation.
• India needs a Solar Waste Management and Manufacturing Standards Policy.