Solar Grid Parity

A few experts have come out with a view that India has achieved grid parity as far as solar energy is concerned paving the the way for explosive growth in solar power production. This is far from the truth. India is on its way towards grid parity for solar and if the trend is continued it will take a few years to get closer to grid parity. However to achieve this we have not only to maintain the present momentum of growth but also seek ways and and means to enhance efficiency of projects taking advantage of new technologies. What are the steps to be taken at this stage?
The present trend in cost reduction of projects is driven mainly by the fall in price of solar PV panels globally. There is a glut in the market resulting in lower prices but this situation cannot be taken as trend that iwould continue.
The positive factors that need to be counted are as follows:-
1. Improved technology that results in higher efficiency of solar panels
2. Growth in CPV production that offers higher efficiency
3. Economy of scales
4. Indigenous production of PV and CPV
5. There are a few other factors ( negative) that also impact on grid parity as follows:-
A. Increase in cost of coal and gas . B. Increase in price of diesel. C. Increase in power tariff for consumers charged by distribution companies. D. Mounting gap between demand and supply as far as electric power is concerned. E. Increasing use of stand-by power sources during load shedding.
The steps to be taken are derived from the factors mentioned above. These are as follows:-
1. Promote use of most efficient solar panels. Generation based incentive is a step in this direction.
2. Encourage use of CPV. May give incentives for this technology.
3. Mass indigenous production of PV and CPV
Solar powered inverters are proving a viable alternative to the normal inverters for domestic use in places suffering from long hours of power shutdown . This cannot be taken as an example of grid parity.
Another important factor that causes concern is the fall in rupee which makes imports costlier day by day. Solar projects are badly affected due to dependence on imported panels and other components. Indigenous panel manufacturers too import materials. Apart from seeking Governmental intervention to subsidise imports, Indian industry must focus on enhancing indegenisation as an effective substitute to imports and also explore the scope of exporting solar products.
It is time to give a big push to the solar industry in India!