Harnessing Solar energy, Options for India

Solar Photovoltaic Applications
This chapter presents techno-economic analysis and prevailing policy mechanisms of some
applications where solar energy makes most social and environmental sense. Small scale gridconnected
and off-grid applications are discussed. Furthermore, in all of these, solar is either
economically viable today or will be in the near future. Where relevant, the levelised cost of energy
(LCOE) and internal rate of return (IRR) for the developer or investor are calculated to assist in
analysis. The discussions here are meant to give the reader a broad picture of the applications and
challenges. The applications considered in this chapter are:
Solar photovoltaic (PV) options for rural electrification: Simple effective solutions, including solar
lanterns and SHLS are discussed, along with solar-based microgrids. Prevailing financial, policy
and institutional mechanisms and barriers to wide-scale adoption are also taken up. The technoeconomics
of a solar-based microgrid is compared with grid extension. The current capital
subsidy is compared with a generation-based tariff structure. Based on the analysis, a
generation-based tariff is recommended for rural microgrids solely consisting of solar energy or
hybridised with other renewable energy sources in order to ensure sustainable operation.
Solar-PV-based irrigation pump sets: These pumps are found to be competitive at today’s cost
relative to diesel-based pumps based on cost per unit of electricity or work done. Economic
analysis is provided for pumps of two sizes – 1 HP and 2 HP – needed to draw water from up to
230 ft (70.1 m) and up to 530 ft (161.5 m) respectively.
Rooftop PV systems for diesel use abatement: In the case of solar PV systems for diesel
consumption abatement, techno-economics is accompanied with a sensitivity analysis that
incorporates varying diesel and PV system prices. It is demonstrated that the solar PV system
could prove to be viable if diesel prices were to increase or PV systems prices were to come
down. The total potential commercial rooftop available and a conservative market size for solar
PV for reduction in diesel use is estimated. In addition to the economics, grid-connected rooftop
PV systems could face technical challenges given India’s transmission and distribution (T&D)
woes. Policy recommendations are made at the end of the section.
Solar PV for Telecom Towers
India has more than 250,000 cell phone towers, each equipped with a diesel
generator of 3 to 5 kW capacity depending on the number of operators housed on the
tower. The towers are energy intensive since they operate non-stop. Given that a
substantial number of these towers are in rural areas and any new additions are
likely to be there as well, diesel consumption will be inevitable given the grid
challenges. Roughly about 2 billion litres of diesel is consumed annually, amounting
to around 4.5 million tons of CO 2 emissions. The Ministry of New and Renewable
Energy (MNRE) is incentivising the replacement of diesel for telecom towers with
solar PV. This report, however, does not evaluate the economics of solar PV for use
in telecom towers.
Solar Photovoltaic Applications CSTEP | Page 59