Energy is necessary for a region’s economic and social growth. Because of greenhouse gas (GHG) emissions and depleting fuel resource stocks, reliance on fossil fuels has posed a severe concern. Around 80% of mechanical effort in daily activities necessitates the use of electricity. The reliance on traditional energy supplies for electricity generation is rapidly depleting the resources.
According to the State Rooftop Solar Attractiveness Index–SARAL issued by the Ministry of New and Renewable Energy, Karnataka has emerged as the best state for establishing a rooftop solar project. Telangana, Gujarat, and Andhra Pradesh are the next three states in the rankings, though all four have received an A++ rating.
Currently, the SARAL system collects five aspects. The states’ policy framework, implementation environment, investment climate, customer experience, and business ecosystem are all factors to consider.
Why Should you Consider Starting a Solar Business in Karnataka?
KREDL has concentrated its efforts on nine major markets: the green energy corridor, renewable energy parks, solar, wind, solar-wind hybrid, energy storage, biomass, waste-to-energy, mini and small hydro, new initiatives, and pilot projects or R&D.
The state intends to promote offshore wind, tidal, and wave energy, rooftop aero turbines with solar, aero turbines on roads, hydrogen and fuel cells, bio-compressed natural gas, concentrated solar power, and others on a case-by-case basis under the new initiative and pilot project components. Renewable energy-related research and development will also be encouraged by the state.
In short, the new policies of the Karnataka govt are very much in support of renewable energy-based businesses.
Solar Energy Generation in Karnataka
Karnataka, in India’s southwest, is the state that produces the most solar energy. Karnataka is well ahead of the other states, with a total installed solar power capacity of around 7,100MW – not including the 1,000MW of projects in the queue.
The Pavagada Solar Park (or Shakti Sthala) in Tumakuru district of Karnataka is India’s second-biggest solar power plant, having previously been the world’s largest of its kind, with a production capacity of 2,050MW.
In the districts of Bidar, Koppal, and Gadag, the state is expected to witness three more ultra-mega solar power projects, each with a capacity of 2,500MW.
This is a clear view of the fact that solar has a good future and ROI in Karnataka.
Ease of Doing Solar Business in Karnataka
Based on total installations at the end of December 2019, Karnataka is the largest market for solar electricity in the open access option.
Karnataka’s solar policy, which was implemented in 2014, is the most favorable in India for open access solar power because it provides a 10-year exemption from all grid tariffs. As a result, it waives all transmission, wheeling, and banking fees. It also waives the cross-subsidy surcharge that is usually applied to any third-party sourcing of open access power. It also means that corporations can enter into simple third-party Power Purchase Agreements (PPAs) for Power without having to own any shares in the SPV or having to own any shares at all.
How Can We Help?
Hope this information about “How Much Potential Does Karnataka have For Solar Businesses & Why?” helps you.
If you are planning to start a solar business or install a solar solution, you can connect with Ornate Solar to get the best assistance with the best prices for solar panels and inverters. We are the official partner of Canadian Solar panels & Renewsys solar panels in India. We are also the official distributor of SolarEdge inverters with DC optimizers, Enphase microinverters, Fronius On-Grid Inverters, and Havells solar inverters in India.
For more information, please give us a call at 011 4353 6666.