India, with its initiates in the field of renewable energy is trying hard to secure the future of its coming generation to fulfill its energy needs. With the support of Government and other private and public sector enterprises/companies, Solar Industry is letting itself grow in a very big manner. Though the targets set by Government for its solar energy generation for future seems to be very ambitious, but we are sure that we’ll be able to reach the target.
With the prompt actions taken by Modi lead Government, countries like China, Japan, Germany and the United States are also coming forward to support India and to lead investments of around $100 billion over seven years to boost India’s solar energy capacity by approximately 33 times to 100,000 MW.
The conventional sources of energy are still available on this earth but will not take much time in its depletion from the earth. And in such cases non-conventional sources of energy are the future of the earth. Solar power is attractive because it is abundant and offers a solution to fossil fuel emissions and global climate change. Earth receives solar energy at the rate of approximately 1,73,000 TW which is far more than the current requirement of the entire world.
India is slowly building upon its installed solar power capacity and in the financial year 2014-15 itself it had added almost 950 MW of solar power capacity making it to more than 3000 MW of installed solar capacity in the country till date. Thanks to the National Solar Mission, state solar policies and relatively increased enforcement of the Renewable Purchase Obligation.
There are many other benefits that are available to investors as well as the country for promoting the solar power industry and the same are briefly mentioned below:
- First of all it’s a proven way of serving the society and saving our mother earth.
- One of the benefits off course as stated above is the continuous and comprehensive support of Government of India and support received from other countries as well.
- For captive consumers, no cross subsidy surcharges are applied for solar power.
- Accelerated Depreciation can be availed by the solar generation company which is 80 % of the invested capital with tax liability. This is as per Section 32 of IT Act and thus, investors can set off their tax liability on the taxable income to the tune of 80% in the 1st year and subsequently 20% in the 2nd year.
- Solar energy is not only sustainable, it is renewable and this means that we will never run out of it. It is about as natural a source of power as it is possible to generate electricity.
- During operation solar electricity power plants produce zero emissions and it is in no way hazardous for the environment. Also it is helping in reducing global warming.
- It is a proven fact that the cost of establishing a solar power plant is reducing day by day as it has reduced by almost 50% in past 5 years due to the continual advancements in solar panel technology which are increasing the efficiency and lowering the cost of production.
- Import duty and Excise duty exemption on solar plant equipment like solar panels, inverters and other items are available in the country.
- Ministry of Environment & Forests allows participation in “Certified Emission Reduction” (CER) Credits to the companies which are registering themselves for the same, which can be traded in the international market.
- For power generating companies it is also easy to fulfill their RPO obligations by switching to solar power.
- Generation based incentives and other supportive schemes or subsidies are provided by the government to the developers from time to time.
- Income tax Act, 1961 allows solar power generating companies a tax waiver on 100% of profits for 10 Assessment years (from initial assessment year) under section 80-IA (sub section 4) during first 15 years of its operational life. The same is valid for the plants commissioned till 31st March, 2017.
- The Break Even Point (BEP) of any solar power plant is around 3-4 years, after which a long & stable income is generated for a period of 25 years.
There are many such benefits which can be availed but finally leaving everything else, solar power has created many jobs in the country and many institutes or organisations are coming forward to train the manpower in this sector. This is ultimately also helping to decrease the poverty from the country.
“Go Solar” will be the ultimate aim of the country for fulfilling its need of power.