The growing market sentiments in favour of green energy have put solar energy at the forefront of power generation. Market movement over the last few years are indicative of strong growth potential in this segment. However, one particular roadblock is impeding the adoption of solar energy by the masses which is the profitability of DISCOMS.
Eighty percent of the parts required to set up a solar power generation plant are imported, thus making it an expensive affair. As a nation, a renewed focus on the inhouse generation of solar power can make its distribution financially feasible.
The government of India has been actively working on drafting policies to significantly boost the sector. Financial aid, reducing imports and promoting domestic manufacturing of parts are among the key issues that the Government of India is striving to address.
The imposition of Basic Customs Duty on all imported parts from 2022 onwards is a policy measure that should bolster domestic manufacturing. It will not only reduce foreign dependence but also cut costs.