Karnataka is one of the largest states in India, covering an area of 244.8 million km². Its capital city is Bangalore. In recent years, solar energy has played an important role in providing electricity to the residents of the state. This article will examine the growth of solar in Karnataka and how the government supported this initiative.
Why Solar Energy In Karnataka?
There are many favorable conditions in Karnataka for solar power. The state is located in the southern part of India, and it enjoys abundant sunshine throughout the year. As a result, the state is well-positioned to take advantage of the growing popularity of solar power.
Also, Karnataka is one of the largest producers and consumers of milk in the world. The state’s dairy industry provides an important source of income and employment. In 2018, the Indian Government announced a plan to subsidize the purchase of solar-powered milk-frigates. This initiative is aimed at reducing the state’s dependence on fossil fuels and helping to combat climate change. With numerous advantages like these, it is not surprising that many are choosing to invest in solar power in Karnataka.
Even more impressive is the fact that total investment in renewable energy sources in the state is currently amounting to billions of dollars, as the government supports renewable energy sources through various schemes. These schemes include preferential power purchases for low-income households, as well as a targeted subsidy for solar power installed on commercial and industrial buildings.
Growth Of Solar In The State
The use of solar energy in Karnataka first took off in the rural areas, where electricity was mainly used for lighting and refrigeration. However, as the population moved to urban areas, the need for solar power increased in those areas as well. This trend was supported by governmental policies, which preferred to promote solar power over less-environmentally-friendly energy sources.
To examine this growth, one can look at the number of solar energy projects in the state. In 2014, the number of solar power projects in the country was 12,000. By 2018, this number had more than tripled, reaching 42,000 projects across the country. Among the 42,000 projects, approximately 7,300 (17%) were in Karnataka. This means that in just over a decade, the use of solar power in the state increased by almost 600% (source).
The increase in solar energy projects in the state is not surprising, as it offers some of the best investment opportunities in the country. The cost of solar energy in Karnataka is also highly competitive, and this coupled with attractive return rates make the state a lucrative venture for prospective investors. The opportunities in the state are not limited to renewable energy, as one of the biggest electric power producers in the country, BSES, is based in the state. In 2018, the company registered revenue of US$13.9 billion and net profit of $2.7 billion (source).
Subsidy For Solar In Karnataka
In 2017, the Karnataka Government set a target of supplying ten percent of the state’s electricity needs from renewable sources by 2020. To achieve this, the government offered various subsidies to attract investors. One such subsidy offered is for the installation of solar power in residential buildings. For this purpose, the government announced the set-up of a Solar Energy Board. This board was responsible for disbursing the funds to support solar projects in the state. In 2018, the government provided a soft loan of $0.38 per kWh for a period of 20 years to offset the cost of solar installation. This is in addition to the 50% rebate on solar power installed on commercial and industrial buildings.
This soft loan is funded by the State Development Bank of India, and it is offered at an annual interest rate of 2%. This is significantly lower than the rate prevailing for conventional loans. The rate of return on investment in solar power in Karnataka is also quite high, frequently surpassing the returns on investment in the stock market and other traditional investment vehicles. This is primarily due to the high adoption rate of solar power in the state as well as the government’s incentive programs (source).
The growth of solar in Karnataka is supported by the State Government, as it offers various schemes to provide low-cost electricity and promote renewable energy. The State is also the headquarters of many big businesses, which has helped to create several employment opportunities. These businesses include some of the biggest manufacturers in the country. One of the biggest solar power producers in the country, SunEdison, is also based in the state. The company recently celebrated 25 years in operation in the country, having started its initial operations in Karnataka in 1994.
The growth of solar in Karnataka is also due to the fact that the State is a hub for information technology and the digital economy. Many big firms have large offices in the state, which has helped to attract significant investment. In addition, many of the companies that are based in Karnataka provide IT services to businesses worldwide, which helps to bring in more employment opportunities. The advantages of this form of employment are many – including the flexible hours that one can work, the high rate of innovation, and the ability to remain relatively resourceful – all of which contribute to making the state a desirable place to live and work. Of course, the state’s temperate climate and beautiful natural beauty also make it a desirable location to vacation.
Expected Growth Of Solar In Karnataka
Although Karnataka has taken steps to promote solar energy, there are still quite a few barriers to widespread adoption of solar power. For instance, most people in the state have not been exposed to the concept of generating their own power, so there is a lack of trust in the technology. Also, while the cost of photovoltaic electricity has come down significantly in the last few years, it is still far more expensive than conventional electricity. As a result, many people in the state are unable to afford it.
However, with many advantages associated with solar energy in Karnataka, it is clear that the state’s economy and electricity needs will continue to grow in the near future. It is quite possible that in the coming years, solar power will emerge as one of the biggest sources of electricity generation in the country.