Why Does Steel Industry Need to Adopt Solar Energy ?

India has the world’s second-largest steel industry and is the third-largest consumer of steel. The steel sector, like that of every other industrializing nation, is critical to India’s economy, generating about 2% of GDP and employing around 2.5 million people in steel and associated industries (MoS 2019).
However, the iron and steel industry also ranks first in terms of CO2 emissions. Let’s understand how the industry can benefit from solar.

In the steel manufacturing process, the operation of sinter plant, calcining plant, coke oven, blast furnace blowers, basic oxygen furnace, oxygen plant, slab casters, and rolling mills require electricity. However, the primary source of electricity in this giant sector is still coal.

Many iron and steel companies in India have set up captive electricity plants to meet the power demand. Coal, natural gas, and diesel account for 91%, 7%, and 1%, respectively, of this captive generation.

As a result, the industry emits 2.6 gigatonnes of carbon dioxide (Gt CO2) per year, accounting for 7% of global energy system emissions and more than all road freight emissions combined.

The Iron & steel industry in India is covered under the Environment Protection Act (EPA) AND Environment Protection Rules & Regulations that fall under the Ministry of Environment & Forest. This means that the steel plants have to install pollution control equipment and follow certain prescribed Standards/Norms with respect to limiting their air, noise, and water pollution.

In this scenario, solar has immense potential. Since solar energy is a clean, cheap, noiseless, and localized resource it can help a steel company to reduce their electricity expenses and bring down their carbon emissions.

One of the primary benefits of switching to solar energy is the potential for significant cost savings. Solar power can provide a stable and predictable source of energy, reducing a steel factory’s reliance on fluctuating fossil fuel prices. A company can save up to 80-90% of energy costs by installing solar panels.

Moreover, you can recover the initial investment of solar installation within 4-5 years.

Solar energy allows the steel factory to generate its electricity on-site, reducing dependence on external energy sources and reducing the impact of energy supply disruptions.
A company can also opt for off-grid or hybrid solar systems and integrate battery backup for continued electricity supply.

Solar power is a clean and renewable energy source that produces minimal greenhouse gas emissions and air pollutants compared to traditional fossil fuels. By using solar energy, a steel factory can significantly reduce its carbon footprint and contribute to mitigating climate change.
It can also enhance its ESG rating and develop a positive public image in the market.

Solar panels have low maintenance requirements, which results in reduced operating and maintenance costs over the long term. This leads to improved financial stability and predictability for the steel factory.

Solar panels have a long lifespan, often ranging from 25 to 30 years or more. This one-time investment can provide a stable and reliable source of energy for a steel plant for decades.

Many governments offer incentives, grants, and tax benefits (40% accelerated depreciation on your asset) to encourage the adoption of solar energy. These incentives can significantly lower the upfront costs of installing solar panels and accelerate the return on investment.

• Captive Solar Plant (Roof/Ground Mounted): Steel factories with access to sunlit roofs can install solar panels on top. However, a lot of companies opt for ground-mounted solar plants to meet their demand
• InRoof solution: Inroof is an innovative solution that turns solar panels into a leak-proof roof. With this option, companies can turn their roof into mini solar farms.
• Open Access Solar: Companies with a sanctioned load of a minimum 100kW have the option of buying solar energy directly from the open market. This way, a consumer will only have to pay for the energy consumer without investing capital in installation.

Ornate Solar is a leading solar company with 8+ years of experience in the industry and the mission to reimagine the way solar is installed worldwide.

By not only partnering with the best-in-class solar brands but manufacturing our high-quality solutions, (panels, inverters, accessories, InRoof), we develop and deliver solutions that are modern, reliable, and effective.

If you are exploring solar solutions for your steel factory, reach out to us at 011 43536666 to discuss your options