Feasibility Report on Solar Power

The Sun has been a primordial source for life on Earth. With the onset of the industrial age, sunlight was introduced as an energy source as well.

Introduction

Feasibility Report on Solar Power is as follows.

The amount of sunlight that hits the surface of our planet in a period of 90 minutes is sufficient to satisfy global energy requirements for almost a year. Photovoltaic (PV) panels or indirectly concentrated solar power or a combination of both is used to store and concentrate the solar energy and transform the sunlight into electrical energy which can be used for electricity generation or thermal storage. Such conversion of sunlight into electricity is called solar power.

The concentrated solar power system uses mirrors and a solar tracking system for focusing a huge area of sunlight into a small beam whereas the photovoltaic panels convert the sunlight into an electric current using the photovoltaic effect.

A solar power plant or a Photovoltaic power station is a collection of large-scale photovoltaic systems that are used for the supply of merchant power into the electricity grid. Unlike other decentralized solar power applications generally used for local supply, solar power plants ensure the generation and supply of electricity at the utility level. It is one of the fast-developing industries in India contributing to the sector of renewable energy. The country’s solar installed capacity was 40.09 GW as of 31 March 2021. Commercially concentrated solar power plants came into existence in the 1980s but with the fall in the price of solar electricity, the solar PV systems have increased drastically with the imminent development of PV plants of gigawatt scale.

The Government of India managed to achieve the target of 20 GW earlier than it was targeted for. India has also made available 42 parks for the development of such power plants. The Ministry of New and Renewable Energy reported that an additional 36.03 GW of solar projects are under their developing stages and 23.87 GW are in the tendering process. Solar PVs are gaining a positive reputation as an inexpensive and low carbon alternative for electricity generation and a renewable energy source from the Sun. Currently, the largest photovoltaic power station in the world is the Bhadla Solar Park in Rajasthan with a generation capacity of 2245 MW. The Kutch solar and wind power park with an expected generation capacity of 30,000 MW or 30 GW, is also in its developing stages.

Feasibility Report Sample

Market Strategy

Most certainly, the competition has increased in the solar power industry. The financial performance of a solar power plant is a ratio of its income and its cost or its capacity and its performance. Dilute profitability of solar module manufacturers and market acquisition stress lead to a decline in the prices of photovoltaic panels. Reliability, altogether production, and competition, climatic conditions, and geographical latitudes are the fundamental components that affect the market growth of the solar energy sector. Regions that experience frequent snowfall and rainfall face special difficulty harbouring solar power plants.

As per the solar module, the industry is divided into monocrystalline, polycrystalline, cadmium telluride, amorphous and silicon cells among few others, out of which the silicon cell sector is expected to witness maximum growth. The PV system is forecasted to outrank the already-existing conventional sources as the demand for PV installations along with the increment in demand for lithium ion-powered batteries for solar energy storage

The global market stood at $52.5 billion in 2018 which is further expected to grow to reach $223.3 billion in 2026, growing at a compound annual growth rate of 20.5% (2019-2026). From April 2015 to February 2021, India has added 117.9 GW of power generation capacity. The pre-installed renewable power generation capacity grew at a CAGR of 17.33% from 2016 to 2020. India’s renewable energy sector has witnessed an investment of over $40 billion since 2014 which is expected to grow further with the rising interest of the Government in this sector, increased residential-use demand, and the necessity to switch to renewable energy sources due to the ominous climate change which has begun to threaten the existence of the humanity itself. India ranked third in regards to the investments in renewable energy sources and plans in 2020. Around Rs. 36,729.49 crores were invested during April-December 2019 by private companies in renewable energy.

The Ministry of New and Renewable Energy has aimed to set up renewable energy capacities to 227 GW by 2022. This sector is also expected to attract investment worth over $80 billion within the next 4 years. It is also forecasted that 49% of national electricity will be generated through solar power plants and other renewable energy sources. The use of renewable energy sources will save India an estimated figure of about $8 billion annually. 

Government-aided schemes and projects along with the recent necessity to switch to renewable energy sources due to climate change have made the solar power plant industry capable and reliable, but with few amendments and improvements, this sector can develop and progress further.