Global Dynamics of Solar Panel Prices
Prices of Solar panels experienced a remarkable 50% drop in 2023, reached record breaking lows in 2024, with industry estimates of continuing downward trend for the next 2 years.
During the announcement of the 2024-25 budget, Finance Minister Nirmala Sitharaman introduced several new government plans and rules aimed to reshape India’s reliance on fossil fuels. Among these measures are tax and duty exemptions for solar equipment aimed at increasing domestic solar manufacturing. The government’s endeavours to reduce fossil fuel consumption are being bolstered by technological advancements in the green energy sector.
With the effects of global warming and climate change becoming readily apparent day by day, the global shift towards green energy is driving numerous countries to embrace renewable alternatives. With Governments, individuals and businesses consciously recognizing the need to go green. Low cost of solar modules and increased consumer awareness is slowly bringing about change in the rooftop solar segments.
With low prices, leading solar photovoltaic modules (PV) manufacturing countries like China and Malaysia are putting their planes for expansion on hold. In a recent report to Reuters, Davis Chong, Chief Executive Officer in Malaysia’s Solarvest said, “The upstream supply is roughly double the downstream demand. It will take about one to two years to adjust and balance the supply and demand”.
China, being responsible for producing 80% of the world’s solar panels, bears the brunt of sluggish market prices. The price fall was unexpected according to many industry experts, resulting in a surge of low-cost exports to flood international markets. The low cost has also prompted some European solar manufacturers to shut down their operations. In recent years India has seen tremendous improvements in the prospect of green energy, as government incentives and policies, aimed not just to promote domestic solar panel manufacturing but also to increase foreign investments in the green energy sector.
India’s Leadership in Renewable Energy
Ranked fourth globally in renewable energy installed capacity, India boasts the same position in both wind and solar power capacity. The nation has elevated its ambitions, aiming to slash carbon emissions by over 45% by 2030 and achieve net-zero emissions by 2070. This commitment underscores India’s dedication to combating climate change and transitioning towards a greener economy. With the world’s most extensive expansion plan in renewable energy, India is poised to lead the charge towards sustainability.
As of February 2024, the solar energy capacity has surged by 30-fold over the past nine years, reaching an impressive 75.57 GW. This remarkable growth demonstrates India’s substantial progress in harnessing solar power and underscores its position as a global leader in renewable energy adoption and innovation.
Government Initiatives Driving Solar Adoption
Government initiatives such as the newly introduced PM Surya Ghar Muft Bijli Yojana, also known as the rooftop solar scheme, aim to offer subsidies for solar panel installations, allowing households to receive over 300 units of electricity free of charge each month. It also reflects governments broader recognition of the benefits of renewable energy sources, underscoring the pivotal role that affordable technology and public awareness play in driving the transition towards a more sustainable energy future.
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