Private Indian Companies Upbeat About Solar Power

Other than the green credentials, increasing grid power tariffs for commercial and industrial consumers, falling prices for renewable projects has propelled a faster adoption of solar power by the Indian corporates. Companies can buy renewable power through corporate renewable Power Purchase Agreements (PPAs). Corporate renewable PPAs help companies reduce current electricity costs and increase visibility over future electricity costs. The rate of adoption of solar power also differs from state to state. For example, states implementing net metering rules will witness more rooftop solar installations than a state not having it.

India has a huge demand for industrial as well as commercial power.  Solar and onshore wind are today cheaper than electricity grid tariffs in most states across the country and so it makes complete economic sense to install these renewable sources of power. Though the solar adoption in India is gradually increasing, the country will need to continue to scale up its success with renewable energy in order to fuel the growing demand for electricity and to achieve its target of 175 GW of renewable energy installations by 2022.

Most of the manufacturing industries and factories in India procure power from power distribution utility, which buys the bulk of its electricity from coal-fired power plants. But, much of this is going to change now. Many leading Indian private companies are increasingly deciding to go green. Leading Indian companies such as Infosys, Tata Motors, Hatsun Agro, Hindustan Coca-Cola Beverages have vowed to reduce their carbon footprint and install clean sources of power generation.

Others like Idea, Godrej, Ultratech have also installed solar panels at their offices/ factories. Leading companies in the west such as Amazon.com, Macy’s, IKEA, General Growth Properties, Costco Wholesale, Kohl’s, Target etc are betting big on solar. Apple, the leading technology giant is now powered 100% by solar at all its locations in more than 40 countries worldwide. An action of such magnitude and by a world famous company instills confidence in contemporaries as well. Given, Apple’s wide geographic footprint, many countries alike have been encouraged to adopt solar. Following the Apple commitment towards solar, Indian payments company Paytm is also upbeat about going solar.

The government offices, buildings, transportation hubs in India are already running on renewable energy. It will be good to see leading private corporate players in India to adopt solar in a big way.