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FAQ > Solar Overview

India is amongst the top five energy consumers in the world


World Overview
  • 35% of world energy need is supplied by crude oil, 25% by coal and 21% by gas.

  • Most of the reserve is concentrated in the Middle-east region.

  • World Primary Energy Sector has been growing at an average of 2% annually.


India Overview
  • India is the 5th largest energy consumer.

  • India has vast potential in the Exploration Sector.

  • 54% Coal, 32% Oil, 9% Natural Gas.

  • Indian Primary Energy Sector has been growing at an average of 5% annually.


 
Consumption Pattern - Electricity
Power Generation – Sectorwise Breakup
Industry outlook
  • The solar module costs (for crystalline solar cells) have dropped by about 90% between the early 1980s and 2010.


  • Thin film cell costs are expected to rapidly come down.


  • For a solar PV power plant, the capital cost per MW is approximately Rs. 17 crores.


  • The project internal rate of return is about 12% while the equity IRR is about 14% under the Generation Based Incentive Scheme, and the project internal rate of return is about 15% while the equity IRR is about 20% under the NVVN Incentive Scheme.


  • The payback period under the Generation Based Incentive Scheme is about 7.4 years, while it is 6.1 years under the NVVN Incentive Scheme.


  • Solar module costs comprise about 60% of the total capex.


  • A change in solar module efficiency by 1% (say, from 16% to 17%) equates to an increase in the energy yield of a cell by 6% or for the whole system by a respectable 4.5% .


  • Prominent domestic banks that fund renewable projects are IDBI, ICICI, IFCI, SBI, and PNB among others.


 
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