Gone are the days when for the buyers seeking respite from frequent power cuts, electricity-based UPS/inverter systems were the only options available in the market. After the advent of solar energy, the scenario has completely changed and the power backup systems studded with solar batteries are all set to take rapid strides across the country in the coming years, if not immediately. It is due to strenuous efforts made by the industry leaders and innovators in this particular segment, India has gradually started moving up the ladder of growth and innovations in solar power generation and its various applications. In line with the target to achieve 100 GW solar power by 2022 set by the government and Jawaharlal Nehru National Solar Mission (JNNSM) for renewable energy, the generic inverter and UPS business has also acquired a new dimension.
However, currently, manufacturing solar batteries is capital intensive and moreover, competition among the suppliers is also rising. Despite the fact that the sun offers plentiful, pollution free and reliable power, the expensive cost of equipment and technology has made it an underutilized energy resource. Typically the batteries used in home energy storage are made with lead acid, or lithium ion chemical compositions. Among all these, the lithium ion batteries are currently considered as the best option for a solar panel system, though lead acid version can be more affordable.
The reason why lithium ion batteries are more popular is that these are lighter and more compact than their lead acid counterparts, though these batteries are a little expensive. Saltwater battery is another new arrival in this segment which is more affordable. However, its commercial production is still required to be tested for making it user friendly. We need to make these batteries compact enough for their use in power backup devices which is presently a big challenge for all the manufacturers. The commercial production of any power backup devices can’t be beneficial unless the product is unique and affordable.
Despite the fact that the sun offers plentiful, pollution free and reliable power, the expensive cost of equipment and technology has made it an underutilized energy resource.
In fact it is due to heavy cost of equipment like solar panels to charge the solar batteries, the development of solar energy in India is getting hampered. Typically it is more expensive to produce electricity through sun and store it than it is from coal, or hydro sources. Moreover, we are largely dependent on import for the high-cost components and modules required for manufacturing of solar power inverters and UPS and so the growth in this segment is getting hampered.
India must learn from China’s experiment with its ambitious solar energy program which made it to bring down the prices of its solar products down by 80 per cent. China has become the global leader in renewable energy through its rural-oriented solar program started in the year 1990. Chinese government has played a big role in transforming the solar energy sector in their country by providing heavy incentives to promote rooftop solar panels. It provided and nurtured the required technology and experts and soon it surpassed Germany, the earlier champion in this segment.
In the year 2016 itself the solar energy production in China registered a two-fold increase which is highly commendable. Ever since they started their solar energy revolution, they stressed more on home-grown products and its result is clearly visible today. In India, as well, we must learn from the way China’s ambitious solar energy program was run and accordingly our planners should act and provide the necessary incentives and support then only we can achieve the desired target.
We believe Make in India is a wonderful initiative that can reduce the dependency of solar energy sector on import for the crucial and costly equipments. For the extensive penetration of solar energy in our country, the key is to make it affordable for the masses, as we already have enough sun hitting our roofs to go solar across the country. Moreover, we believe, the estimated decrease in the indirect taxes with the roll-out of GST regime will also drive the next phase of growth in the industry and the benefits of the input tax credit, which shall be passed on to the customers in the form of reduced prices of the product line, will surely improve the current weak demand scenario in the market.
[About the author: Arush Gupta is Director, Okaya]
