In a bid to achieve its target of increasing solar power capacity tenfold by 2022, the Government of India is planning to change the solar pricing model. To boost the growth of its solar power market, India may follow the pricing model of Germany – the biggest market for solar power technology.
In Germany, feed-in electricity tariffs were introduced to encourage the use of renewable energy technologies. To accelerate investment in renewable energy technologies, the investors are provided feed-in tariff — a fee above the retail rate of electricity. This makes the investors secure.
In 2013, renewable energy’s share was more than 25 per cent of total energy consumed in Germany. Livemint reported that on sunny/windy days, because of Germany’s boom in renewables, power prices drop so much that grid authorities pay some clean utilities to stop generating.
According to data compiled by Bloomberg, Germany has installed 35 gigawatts of solar power technology compared to India’s 2.4 gigawatts.
India is in desperate need of energy. Germany’s is a fine example of how to promote solar and other renewable energy technologies. India can take a leaf out of Germany’s book and tap its renewable energy potential successfully.
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