INTRODUCTION

Micro power generation is the small-scale generation of heat and electric power by
individuals, small businesses and communities to meet their own needs, as
alternatives or suppliments to traditional centralized grid-connected power.
Although this may be motivated by practical considerations, such as unreliable grid
power or long distance from the electrical grid, the term is mainly used currently
for environmentally conscious approaches that aspire to zero or low-carbon
footprints or cost reduction.

Micro generation technologies include small-scale wind turbines, micro

hydropower generation, solar photo-voltaic systems, microbial fuel cells, ground
source heat pumps, and micro combined heat and power installations. These
technologies are often combined to form a hybrid power solution that can offer
superior performance and lower cost than a system based on one generator.

Among these different methods of micro power generation, I choose Solar PV

System power generation for my SRP. A Photovoltaic system is a power system
designed to supply usable solar power by means of photovoltaics. It consists of an
arrangement of several components, including solar panels to absorb and convert
sunlight into electricity, a solar inverter to convert the output from direct to
alternating current, as well as mounting, cabling, and other electrical accessories to
set up a working system. It may also use a solar tracking system to improve the
system’s overall performance and include an integrated battery solution, as prices
for storage devices are expected to decline. A solar array only encompasses the
ensemble of solar panels, the visible part of the PV system, and does not include all
the other hardware, often summarized as Balance of System(BOS). As PV systems
convert light directly into electricity, they are not to be confused with other solar
technologies, such as concentrated solar power or solar thermal, used for heating
and cooling.

Operating silently and without any moving parts or environmental emissions, PV

systems have developed from being niche market applications into a mature
technology used for mainstream electricity generation. A rooftop system recoups
the invested energy for its manufacturing and installation within for its
manufacturing and installation within 0.7 to 2 years and produces about 95 percent
of net clean renewable energy over a 30-year service lifetime.

Problems faced by Photovoltaic Systems

1. Solar Intensity: One of the biggest hurdles to the widespread adoption of

solar power is variances in solar intensity. According to the National
Renewable Energy Laboratory, the sun provides almost twice as much
energy to the Mojave Desert as it does to the Pacific Northwest. Because a
panel’s output depends on the amount of solar energy it receives, this means
solar is a much better power source in Southwest deserts than in other parts
of the country. While a solar panel can provide at least some free electricity
anywhere in the country, the investment will take much longer to pay for
itself in regions without intense solar coverage.

2. Efficiency: Another problem faced by solar electricity is photovoltaic

efficiency. If you leave in the desert, a single square meter of solar panel
could receive the equivalent of more than 6 kilowatt hours of energy in the
course of a single day. But a solar panel cannot convert that entire amount
of energy to electricity. The efficiency of a solar panel determines how much
of that power is usable, and most commercial solar panels on the market in
2013 have efficiency ratings of less than 25 percent. The more efficient a
panel is, the more expensive it is to produce. Barring any major leaps in
technology, efficiency ratings beyond 33 percent are unlikely in the near
future.

3. Reliability: One major problem with solar power is reliability. AT best, a

solar panel can produce electricity for 12 hours a day, and a panel will only
reach peak output for a short period around midday. Tracking panels that
follow the sun can extend this prime generation period somewhat, but it still
means that panels spend very little of the day producing at maximum
capacity. Storage batteries can charge during peak generation and provide a
 trickle of power at night, but they can be expensive, contain toxic materials
and wear out quickly due to repeated charge and discharge cycles.

4. Environmental effects: While solar generation is emission-free, the

manufacture of solar panels and related technologies can involve some
environmentally unfriendly substances. Nitrogen trifluoride is a common
byproduct of electronics manufacture, including those used in solar cells,
and it is a greenhouse gas 17,000 times more potent than carbon dioxide.
In addition, many solar cells include small amounts of the toxic metal
cadmium, and the batteries required to store generated electricity can
contain a host of other heavy metals and dangerous substances. As solar
technology improves, manufacturers may be able to move away from
these potentially dangerous substances, but for now, they mar the
otherwise impressive ecological benefits solar power offers.

Photovoltaic systems are generally categorized into three distinct market segments:
residential rooftop, commercial rooftop, and ground-mount utility-scale systems.
Their capacities range from a few kilowatts to hundreds of megawatts. A typical
residential system is around 10 kilowatts and mounted on a sloped roof, while
commercial systems may reach a megawatt-scale and are generally installed on low-
slope or even flat roofs. Although rooftop mounted systems are small and have a
higher cost per watt than large utility-scale installations, they account for the largest
share in the market. There is, however, a growing trend towards bigger utility-scale
power plants, especially in the "sunbelt" region of the planet.

A small PV system is capable of providing enough AC electricity to power a single

home, or an isolated device in the form of AC or DC electric. Military and civilian
Earth observation satellites, street lights, construction and traffic signs, electric
cars, solar-powered tents, and electric aircraft may contain integrated photovoltaic
systems to provide a primary or auxiliary power source in the form of AC or DC
power, depending on the design and power demands. In 2013, rooftop systems
accounted for 60 percent of worldwide installations. However, there is a trend away
from rooftop and towards utility-scale PV systems, as the focus of new PV
installations is also shifting from Europe to countries in the sunbelt region of the
planet where opposition to ground-mounted solar farms is less
accentuated. Portable and mobile PV systems provide electrical power independent
of utility connections, for "off the grid" operation. Such systems are so commonly
used on recreational vehicles and boats that there are retailers specializing in these
applications and products specifically targeted to them. Since recreational vehicles
(RV) normally carry batteries and operate lighting and other systems on nominally
12-volt DC power, RV systems normally operate in a voltage range that can charge
12-volt batteries directly, so addition of a PV system requires only panels, a charge
controller, and wiring. Solar systems on recreation vehicles are usually constrained
in wattage by the physical size of the RV's roof space.
 SOCIAL RELEVANCE
The energy sun provides to the earth for one hour could meet the global energy
needs for one year. Undoubtedly, the sun is a powerful energy source, and even
though we are not able but to collect a fraction of this energy, yet harnessing this
power by installing solar panels can make a significant difference to the planet.
While it has been widely criticised for being expensive or inefficient, solar energy
has now proved to be extremely beneficial – not only for the environment but also
for private economy. The technology has been drastically improved the last years,
and has been complemented by solar battery storage systems, turning solar into a
significantly more efficient source of clean energy.

Solar energy is socially relevant in many ways to the humanity needs. The most
important thing is that solar energy is a truly renewable energy source. It can be
harnessed in all areas of the world and is available every day. We cannot run out of
solar energy, unlike some of the other sources of energy. Solar energy will be
accessible as long as we have the sun, therefore sunlight will be available to us for
at least 5 billion years when according to the scientists the sun is going to die

Another benefit of the of the solar energy is that it reduces electricity bills. It not
only reduces the electricity bills but also there is a possibility to receive payments
for the surplus energy that we export back to the grid. Solar energy systems
generally don’t require a lot of maintenance. We only need to keep them relatively
clean, so cleaning them a couple of times per year will do the job. Also, there are
no moving parts, there is no wear and tear. The inverter is usually the only part that
needs to be changed after 5-10 years because it is continuously working to convert
solar energy into electricity. Apart from the inverter, the cables also need
maintenance to ensure solar power system runs at maximum efficiency. So, after
covering the initial cost of the solar system, we can expect very little spending on
maintenance and repair work.

Technology in the solar power industry is constantly advancing and improvements

will intensify in the future. Innovations in the quantum physics and nanotechnology
can potentially increase the effectiveness of solar panels and double, or even triple,
the electrical input of the solar power systems. Another important advantage of solar
energy is the job creation. Large part of the cost associated with solar systems comes
from the installation of the panels. This contributes to local job creation. Using solar
systems boosts the economy and positively affects the local community.

Energy demand tends to be higher in the peak hours (11:00-16:00) time frame and
then early in the evening. Naturally, this is the period when the price of the
electricity peaks. Solar energy happens to reach its maximum production capacity
during those hours. Electricity produced at that time has higher value than if it was
generated at night. With the additional electricity input of solar energy, prices in
those time frames could be driven down to a level close to those of night hours. The
grid is less vulnerable to blackouts if there are many power plants which are spread
out. A grid with high penetration of solar energy has thousands of energy production
centres which are widely spread out. This improves the security of the grid in case
of overload, natural or human-caused disasters.

Solar energy has the least negative impact on the environment compared to any
other energy source. It does not produce greenhouse gases and does not pollute the
water. It also requires very little water for its maintenance, unlike nuclear power
plants for example, needing 20 times more water. Solar energy production does not
create any noise, which is major benefit, since a lot of solar installations are in urban
areas, such as domestic solar panels. An important indirect benefit that has a direct
impact on the efficiency of the power grid in the case of the common problems of
blackouts and voltage dips. The possibility of introducing solar power from
thousands or even millions of individual energy-production centres improves the
security on the power grid against overloads or fires in transformer substations.

The production of clean energy from the sun significantly reduces costs, because it
is an inexhaustible source of energy that isn’t subject to market fluctuations or the
effects generated by speculation. As mentioned before, it requires a significant
initial investment that is offset by the rapid amortisation of the investment. And
most importantly, it is an unlimited and continuous source of energy that doesn’t
require any additional maintenance or usage costs. Nevertheless, the latest
technological advances point towards a significant drop in the prices of the
components required to manufacture the panels, which will translate into more
efficient and affordable solar cells.
The easy and simplicity of the installation means that it can be installed almost
anywhere, taking advantage of both vertical and horizontal spaces with no specific
use. This aspect, along with the modularity and flexibility of the system, facilitates
the installations of small-scale solar projects with the added advantage that the
installation can be expanded depending on the needs at any given time. Losses
during transport and distribution of energy increase with the distance between the
production and supply points. Although these losses are not very large, they do
affect the performance of the installation in densely-populated areas. On the other
hand, with the individual installation of photovoltaic panels on rooftops, the
distances are drastically reduced, increasing the efficiency of the electrical system.

Solar electricity is one way to power our home or business that benefits the
environment. There are no direct greenhouse gas emissions because the electricity
is made from sunlight rather than burning fossil fuels. Sunlight is a renewable
energy source, meaning we will never run out of it. Coal and gas are fossil fuels and
will eventually run out. And in our sunny state there’s plenty of sunshine all year
round. Solar power is in great demand and around one in four homes already has it
in regional areas. If we decide to sell or rent out our home or business premises, a
solar photovoltaic (PV) system is a popular feature and may add market value. Grid-
connected solar PV systems are generally very low maintenance. With, occasional
cleaning and a regular health-check by a licensed electrical contractor, solar panels
should last around 25 years. It is likely the inverter will need to be replaced at least
once in that time.

Solar panels not only eliminate electric bill, they can also be a source of extra
income. As we mentioned before, net metering allows us to earn money by selling
excess power our solar panels generate to our utility. Performance-based incentives,
like Solar Renewable Credits (SRECs), that have the potential to earn hundreds of
dollars a year, depending on where live. The money earn from net metering,
combined with electric bill savings and other incentives, go towards paying back
the cost of system. In areas that have all of these incentives, the payback time for a
solar panel system can be as little as four years. Once our system is paid off, solar
panels will continue to generate free power for our home for the lifetime of the
system.
In present times, the world has been adopting renewable power at a rapid rate. India
is also emerging in the global arena as a leading generator of renewable energy. In
its efforts to move further towards sustainable development, the government has set
a target to achieve 175 GW of installed capacity of renewable energy by the end of
2022. Out of this, 100 GW is the target set for solar installations. Till date, 23GW
of this target has already been achieved and 40 GW is under different stages of
implementation. This inclination towards solar generation has allowed India to
overpower the US and become the 2 nd largest country in terms of solar power
generation in the world. Now, the country is marching towards the achievement of
the laid targets for the year 2022.

Though large scale installations account for 87% of solar power generation, today
the adoption rate of solar rooftop panels is accelerating. The installed capacity of
solar rooftop augmented from 117 MW to 1250 MW from the period between 2013
to 2016. Taking this immense growth into consideration, the Ministry of New and
Renewable Energy through its National Solar Mission of India has set a target of
40 GW power through rooftop solar by 2022. Though this target may seem
ambitious, it is still achievable. There are several reasons that further Accenture the
benefits of installing solar rooftop panels in buildings.
 ENTREPRENEURIAL OPPURTUNITY
Renewable energy sources are sustainable and have the potential to meet present
and future global energy demands without inflicting any environmental impacts.
The use of renewable energy sources through solar energy systems not only saves
the precious high grade energy, but also decreases the rate of depletion of fossil
fuels. It also improves the nations (world) economy as investment in the solar
energy technologies may cost less than efforts to fulfill the increased demand of
fuel supply in future including the cost of damaging factors of environment. One of
the promising options is proved to be Solar Energy. It has all the potential, not only
in providing most of the heating, cooling and electricity demands of the world, but
also to solve the global environmental problems. All countries in the world receive
some solar energy at zero cost. Lowering the high initial cost of the solar energy
systems and popularization/acceptance among consumers is today's challenges.
There are enormous opportunities in future at all fronts if solar technologies are
promoted. The authors have tried to emphasize in this paper that this will not happen
in a single day. It will take a lot of hard work and commitment from researchers and
policy makers. There is also a need of blending market, social forces and
entrepreneurs' involvement including the need to further update our Energy Policy
to maximize and facilitate the active role of each major player, such as financial
institutions, business organizations, non– governmental organizations, micro-credit
organizations, etc.

Starting a solar power business requires all this as well as contract licensing,
depending on the state the business is doing. While most people think of a solar
power business exclusively as solar panel installation, there is much more to this
growing renewable energy industry. As such, there are many ways to establish a
new business in a niche that serves a specific need within the community. Niches
include installation of solar energy systems, serving those systems, sales, financing,
and distribution of products.

Establishing as a Business Entity

The first order of business for any business is to establish the entity through the
secretary of state. A business entity is usually either a limited liability company or
a corporation. While it is possible to be a sole proprietor, the potential to have
personal assets seized in a lawsuit are higher and not recommended for any industry
where property damage or worker injury is higher, such as solar installation.

Obtaining Permits and Licenses

Once after registration of business entity, the process of creation of bank accounts
will be done for establishing credit. Upon getting this, obtain any seller’s permits
from the state tax board, and checking if any further permits or licensing needed or
not.

Researching the Business

If we are buying a franchise, we need to complete the requirements to become a

franchisee as well. Since we are starting an independent operation, we do not require
franchise fees, but we won’t have a proven outline for success. Doing research on
the niche, writing a business plan and funding the business is followed in this stage.

Insurance Requirements

Small companies are often underinsured because they don’t realize which types of
insurance they need and what each policy covers. For any business, having at least
a commercial general liability policy is paramount. This covers liabilities resulting
from a homeowner’s neighbour tripping on a ladder during installation and getting
seriously injured. Seeking a policy that also covers business property such as tools,
computers and office furniture if we maintain an office.

Requirements for Staffing

Worker’s compensation is required by law if we have employees. Many contractors

try to avoid having worker’s compensation by issuing 1099s to employees as
independent contractors. Keeping in mind the penalties are severe for violating
employee laws regulations. Independent contractors set their own schedules and
pricing. Employees are paid a specific wage and have set hours defined by the
employer. If an employee gets hurt on the job, workers’ compensation pays for
treating their injuries.

Renewable Energy Certifications

There are also voluntary certifications specific to renewable energy. Consumers

have become leery of fly-by-night solar companies and are reassured when they see
certificates by organizations seeking to raise the bar and maintain higher
professional standards.

Understanding Incentive Programs

Renewable energy is supported by block grants that trickle down to consumers via
local utility companies. Incentives and rebate programs exist in many places to
convert or install renewable energy systems. Many solar panel installation
companies have used these programs as the backbones of marketing, helping
consumers navigate the system to getting rebates. Learning about the programs
available in the area, how to get the funds and what the saturation points are. Funds
do get exhausted, and programs get put on hold; create contingent plans for
marketing if incentive programs are halted.

Marketing and Sales

Whether the solar power business focusses on installation, sales, distribution or

service, create a marketing strategy using both the practical and psychological
aspects of renewable energy. What this means is consumers buy into solar power
for one of two primary reasons, or both. The first is they want to save money on
rising energy costs, a practical aspect. The second is they want to help the
environment, a psychological aspect. Network with other solar energy companies
outside the niche to develop a strong network of information and referral resources.
Making sure to develop a strong online presence.

Electric power is a vital necessity for a variety of domestic, commercial and

industrial applications. Each of these applications demands electric power that is
compatible with the applications. Traditional methods of generating electric power
include hydropower, thermal power and nuclear power. These days other forms of
generating electricity electricity such as solar power and wind power are becoming
popular because of the renewable nature of the primary source of energy. A popular
way of providing electricity drawn from solar energy is to set up a commercial solar
power plant in India.
 Solar Power Business Opportunities in India

India is one of the largest solar power consumers in the world. According, to
scientists, solar energy is considered to be the ideal source of energy at the moment
and even in the future, considering the present condition of coal and other forms of
non-renewable energy sources. Now the government, as well as its citizens, are
working towards making India pollution-free. There is a tremendous growth in solar
power business opportunities in India.

India has a vast solar-energy potential. Every year, around 5,000 trillion kWh
energy is incident over India’s land area, and most places receive around 4-7 kwH
PER Sq. m per day. The incident solar radiation can be converted into heat and
electricity, namely, solar thermal and solar photovoltaics, thus providing huge
scalability for solar power in India. Therefore, it is a lucrative opportunity for
entrepreneurs to start a business based on solar power. Solar energy also has
significant environmental benefits, making it the single biggest driver to help us
shrink our carbon footprint, in our fight against climate change. As India is a
growing economy, power consumption is only going to rise, so adoption of
alternative forms of energy is the ideal way forward to manage the balance between
economic growth and sustainable environment.

List of Profitable Solar Business Ideas

Selling Solar Products:-

There are lots of solar energy products which are already there in the market or
going to be launched in the market soon, with the development of solar energy
projects. So, if you are to step into a solar power business, the first idea is to sell
products which are required for the use of solar energy or production. For example,
solar attic fans, solar PV, solar thermal systems, solar pumps, solar chargers are
some of the solar products which we can choose from. We can either sell them in
the retail market or take the dealership and distribute amongst retail businesses.

Manufacturing Solar Products:-

If we are not good at selling products, but we have the knowledge about producing
or manufacturing them, it is the right time to start investing in our idea. We can start
producing solar panels, power grids and general products which will use solar
energy. It may seem like a huge investment to start a manufacturing business of
solar products, but the market is growing rapidly and thus the invested amount can
be recovered real quick.

Developing and Owning Solar Projects:-

If we have the knowledge of solar energy production or we have the money to hire
the best solar consultants, we can start our own solar plant for which we will be
receiving government aids and grants. Additionally, we can invest in other solar
projects and earn a return on the same.

Being an Independent Solar Consultant:-

If we have studied or have deep knowledge regarding the solar energy usage or
production, we can impart the knowledge to people who are looking for a
professional opinion on the same.

Servicing Solar Products:-

Another solar business idea with small investment horizon is, setting up a business
which will provide maintenance and repair services to the solar products.

Starting a Solar plates manufacturing business:-

We need to obtain a license for setting up a manufacturing unit producing solar

panels in India. There is a statewide certification of the solar panel businesses,
which we need to acquire for the production and sale of the panels. For this, we
need to hire and recruit solar energy experts and workers. The workers will have to
be trained for the job thoroughly so that there will be no trouble at work.

The central and state governments have been laying great emphasis on solar
business and initiated agricultural solar pump schemes with full swing across many
states in India. Moreover, a solar panel or solar business is one of the most profitable
businesses in today’s time. In fact, solar energy business profitability at the top
position at present and this will stay there in future also. Consequently, different
entrepreneurs have realized the need of the moment and are starting their solar
energy business ventures. Even if you are willing to give a start to yourself in this
business. Moreover, we can start many businesses related to the solar sector which
promises a very good profit in return. If we want to start a business, then we can
start any new business by joining the solar sector.

Earn up to 1 Lakh Rupees by Selling These Products

The government is insisting on installing solar plants. In many states, it has become
necessary to install solar plants in the industrial sector. It is good business for us to
start selling solar products. In this, we can start the business of solar PV, Attic Fane,
Solar Thermal System, Solar Cooling System where we can earn up to lakhs from
this business. Many banks are giving loans for solar-related business.

Start a business by becoming a solar consultant

Another business opportunity in this solar sector is that to become a solar

consultant. We can start our business by becoming a solar consultant. For this, we
should have technical knowledge. This business can be started from 1 to 2 lakh
rupees. With this, we will get a profit of up to 50 thousand rupees.

Maintenance and Cleansing Center Business

Under solar, we can also open a maintenance and cleaning centre. In this way, we
can offer regular services to solar panel owners. Apart from this, we can repair solar
products and inverters by starting a business of maintenance. It will cost about 50
thousand rupees to start this business.

We can also start this Business

Many such products are available in the market, which is operated by Solar. This
can prove to be a very good business. Hence, we can start the business of solar
mobile charger, solar water heater, solar pump, solar lights. Many domestic and
foreign companies work on these products. Moreover, the government also provides
subsidy on water heaters and pumps.
 REVIEW OF CURRENT NATIONAL
SCENARIO
India's abundant solar energy potential provides a clean and attainable replacement
for the extremely harmful, polluting and rapidly depleting conventional sources of
energy. Development of policies for the viable utilization of solar energy can help
India emerge as a leader in the global arena. This paper presents a comprehensive
study of different policies in place to help achieve that goal while addressing the
various barriers associated with the generation of electricity using solar energy. A
brief overview of the development and current scenario of the Indian PV market is
also discussed in this work enlisting various corporations, both public and private,
in the field of development of solar photovoltaics in the country.
To measure the development of an economy, many economists make use of a unit
called the energy demand of the economy. Current estimates predict that the
demand for basic energy sources is set to increase three fold worldwide in the
coming decades. Reports published by the International Energy Agency estimates
India's total energy scenario to increase can be attributed to a demographic
expansion making India the most populated country by 2050. Another report
published by Greenpeace highlights factors like population increase and
exponential GDP development that affect the future energy demands of the country,
increasing the demand over 200% by 2040–50. These reports project an increase in
oil demand and natural gas consumption in the coming decades. To overcome this
steep rise in energy demand, it is projected that the country's power system would
need to quadruple in size. While the reports demonstrate the future rise in demand
for energy, they also present projections for renewables by the year 2050. The
Greenpeace report projects an increase in PV installations across the country, with
PV accounting for 20%–40% of installed renewable energy technologies all over
India.
In developing countries, like India, various factors influence the demand for
sufficient resources like income generation, social development, serious health
issues that arise due to the use of fuelwood, charcoal etc. There has been a trend
historically showing the amount of greenhouse gas emissions being significantly
more for the developed economies as compared to the developing economies.
However, recent studies suggest that this trend is now taking an opposite turn. To
combat the problems of energy poverty and the harmful environmental effects of
conventional sources of energy, there has been a tectonic shift from conventional
sources of energy to the non-conventional sources, namely
Hydropower, Bioenergy, Nuclear, Wind and Solar energy. There has also been an
increase in the use of gaseous fuels in various sectors like transportation, industry
and residential. Hydropower and natural gas are clean and ideal fuels for energy
production but many problems dampen the use of these sources like lack of supply,
delay in clearances, public agitations and certain harmful effects of large hydro
dams on the environment.
Keeping up with the global trend, India has also shifted towards renewable sources
of energy to meet its energy demands. In 1974, the electricity demand in India was
being supplied with a total installed capacity of 16.7 GW, all of which was owned
by the Central and State Governments. Out of this capacity, more than half (51%)
was being operated using coal as fuel, 42% with large hydro, and 4% with nuclear
and 2% with gas, with renewables accounting for 0%. The oil crisis in the 1970s′
was a welcome shock for the Government as it pushed the focus from coal to
renewables. This coupled with the early 1990s’ financial crisis and engagement of
the private sector in industrial development, brought about by the liberalization
and industrialization of the Indian economy in 1991 triggered a growth of the
renewable energy sector.
India, being a tropical country, has an abundance of solar energy. Its geography
allows many regions to receive a vast amount of solar radiation throughout the year.
Forecasting done throughout the country based on satellite and then authenticated
by ground data shows that 500000 TWh of electrical energy is being received by
India's lands, with most regions receiving 4–7 kWh/m2/day. The maximum global
horizontal irradiance is received in the states of Rajasthan and Gujrat.
The technology for solar power plants can be broadly classified to.
1.Solar Photovoltaic (SPV) plants

2.Solar thermal Power plants.

Solar Photovoltaics technologies can be further classified into monocrystalline Si

solar cells, multi-crystalline Si solar cells and thin film solar cells. Crystalline Si
solar cells currently occupy 85–90% of the global PV market while thin film
technologies occupy a minority section of the PV market, with most technologies
becoming next to obsolete. Each solar cell technology has its own merits and
demerits but PV is the key to decarbonize the energy supply. This is of utmost
importance in the Indian energy context considering India is currently the third
largest emitter of CO2 (after USA and China). Studies show that the CO2 emitted by
solar photovoltaics throughout lifetime of the plant is far less than the conventional
power plants i.e. coal. This can also be attributed to the fact that most
CO2 equivalent emissions from solar power plants occurs during the manufacturing
stage. Fig. 1 clearly shows the comparison between the life cycle emissions of
various sources of energy in tons of CO2 equivalent per GWh.

Fig. 1. Comparison of Life Cycle Emissions

The abundance of solar irradiance, the need for rural electrification, the benefits of
solar energy and development of the solar market has led to the development of
major policies over the years.

Solar PV Market in India

The Paris Agreement to decrease the GHG emissions has given a push to the
development of new and efficient renewable energy technology. The first PV cells
were expensive and gave a very low efficiency whereas the energy produced
through coal was cheap and readily available. But over the years, an exponential
decline has been observed by various studies in the prices of PV technologies. A
study suggests that the price of solar panels has dropped by up to 80% since 2009
alone. This decrease in cost along with the requirement to decarbonize the energy
supply has led to an increase in PV installations. The costs of solar PV have also
shown a downward trend from 2010 to 2015, illustrating a drop in prices from 0.285
USD/kWh to 0.126 USD/kWh. A report published by the International Energy
Agency in 2018 describes the low cost of PV tenders in countries around the world.
The levelized cost of electricity were at a record low of 2.1 USDcents/kWh in Chile
and Mexico while Europe saw the costs go down to 5 USDcents/kWh.
These factors have enabled the development of solar PV market in the country as
well as worldwide.

2.1. Initial development

The development of the PV market in India can be broken down into three major
changes that happened near the end of the 20th century, which is shown in Fig. 2:

Fig.2. Development of PV market in late 20th century in India

Simultaneously, the technological aspect of PV technology that has improved

significantly over the years, is the efficiency, ranging from 8 to 9% in the 1980's to
almost 20% in the last few years. This can be seen as a tremendous achievement
considering the efficiency of PV cells was 1% at the time of conception of the
technology. Along with improvement in performance of PV cells, the costs per peak
watt have also declined.
2.2. Corporations involved in PV development

The 1980's saw the seed being sown in the field of PV development with the
Government forming the Department of Non-Conventional Energy Sources
(DNES) in 1985–86 as part of the 5 year national programme. The DNES was later
given ministry status. The second company to include PV products in its portfolio
was a public sector company, namely Bharat Heavy Electrical Ltd. (BHEL), which
was originally in the business of equipment of power generation. The DNES and
BHEL held a monopoly over the market, with only one or two private sector
companies entering the market of PV.
A major turning point in the field of PV was the establishment of TATA BP Solar
Ltd, which was a joint venture of BP Solar, (UK) and House of Tata. In 2001, TATA
BP Solar was the major manufacturer of solar panels in India. The 21st century saw
an overwhelmingly large number of private corporations venturing into the solar
PV sector. A report published by the Ministry of New and Renewable Energy,
outlining the targets and achievement of the National Solar Mission shows the
various corporations involved in PV installations and development throughout
various states of the country. Table 1 highlights some of the corporations involved
in respective states.

Table 1. Corporations involved in PV installations state wise

State Names of Corporation

Rajasthan Alex Spectrum Radiation Pvt Ltd., Maharashtra Seamless Ltd.,
Mahindra Solar One Pvt Ltd., SunEdison Energy India Pvt Ltd., Azure
Power Pvt Ltd., DDE Renewable Energy Pvt Ltd.,
Tamil Nadu CCCL Infrastructure Ltd.
Uttar EMC Ltd.
Pradesh
Orissa Aftaab Solar Pvt Ltd
Andhra Saisudhir Energy Ltd., WELSPUN Solar AP Pvt Ltd.,
Pradesh
2.3. Future prospects of PV market in India

Owing to the growing demand for non-conventional sources to meet the daily basic
needs of energy, solar PV market has taken a leap from where it was in the later
part of the 20th century to where it is now. The domestic manufacturing market has
grown courtesy of the Make in India Policy of the Government. This has led to
several private sector corporations jumping in to the solar PV market. Table 2
summarizes the list of top corporations involved in solar PV development:

Table 2. List of major corporations involved in PV development

Tata Power Solar Systems •

Ltd Subsidiary of Tata Power

•
India's leading solar company.

•
Manufactures solar cells, modules and
other solar products.

EMMVEE •
One of the most diverse solar companies in
the country.

•
Founded in 1992

•
Offers solar PV as well as solar thermal
products.

Kotak Urja Pvt. Ltd. •

Founded in 1997 in Bangalore

•
A subsidiary of Kotak Group

Icomm Tele Ltd. •

Boasts of a presence in the international
market

•
Offers solar solutions in the field of
telecom, power and defence.
Mosar Baer Solar Ltd. •
Also has a global presence

•
Produces crystalline and thin film modules
for different PV systems.

•
Assisted the ANERT program in Kerala to
install solar panels on rooftops.

Indosolar Ltd. •
Founded in 2008 with the aim of
developing world class manufacturing
techniques.

Enertech Group •
Began in 1990.

•
Leading solar UPS manufacturers in India.

•
UPS is equipped with in-built multi power
point tracker.

Delta India •
Delta India is the first to cross the
milestone of over 1 GW rooftop
installations.

Toshiba Mitsubishi-Electric •
Industrial Systems Formed in 2003.
Corporation
•
Company supplies Solar Inverters in
1000 V and 1500 V capacities in industries
across India.

3. Policy development in India

The research and development in the field of solar photovoltaics began in the
1980's with the main objectives being the research on solar cell materials as well as
the development of solar photovoltaic module manufacturing sector. To boost the
field of solar photovoltaics and other renewable energy sources, the Ministry of
Non-Conventional Energy Sources, which later was renamed as the Ministry of
New and Renewable Energy (MNRE), was formed. The MNRE was the first of its
kind Ministry to be established in the world with the sole purpose of drafting and
implementing various policies for the development of renewable energy in the
country. Research indicates that India was the 3rd largest consumer of solar energy
in 1995. In 2002, major solar energy was employed in
the telecommunication sector, street lighting applications, solar powered pumps
and other applications.

3.1. Requirement of solar policy in India

As previously stated, the energy sector was majorly operated by the use of coal as
fuel source while renewables accounted for 0% of the entire energy sector. Several
authors attribute the development of any industry to vitality, supply and
accessibility. The electrical capacity in the country was 1350 MW in the year 1947,
which has increased more than 100 times to a staggering 160000 MW in 2018. It
has further been projected that the next 7 years will see a demand of 90000 MW to
meet the basic electrical needs. At the same time the IEA (International Energy
Agency) projected India to be the 2nd largest contributor in global energy demand
by 2035. Studies indicate that although development of new technology leads
directly to greater productivity and improved lifestyle, it simultaneously brings
about socioeconomic changes in the society that may be opposed by the people. The
key elements in the Indian Energy strategy are awareness, grid parity and cost
competitiveness and cost effectiveness. In order to achieve these, a sound and
steady policy is required. Subsidizing the renewable energy production is a step in
that direction but research indicates that subsidized renewable energy production is
still 50% more expensive than conventional means of generation. To achieve all the
aforementioned targets policies in the direction of development of solar energy is a
need of the hour.
As it has been mentioned in many published works, India has an abundance of solar
resource as a result of India's geography and location. This abundance of solar
resource gives a lot of flexibility to policy makers for the development of solar
energy in the country. The year round abundance of solar energy makes it a viable
source to meet the energy demands of the country.
3.2. Major policies in India

To promote R&D in the photovoltaics sector, the Government of India had set up
the Commission for Additional Sources of Energy in the Department of Science
and Technology. It was later merged with the department of Non-Conventional
Energy Sources in 1992. Despite the establishment of these organizations, the
renewable energy installed capacity was limited to only 29% of total installed
capacity in 2002. Lack of exploitation of the available non-conventional resources
led to the formation of many policies that later shaped the development of the solar
PV industry. These policies were introduced as part of 5 year plans (10th and 11th)
from 2002 to 2012. These plans targeted an addition in the installed capacity of
25 GW by 2012. Later on many other policies were formulated that have been
discussed in the next section. These policies have helped increase the installed
capacity of renewable energy with solar accounting for 19% of total installed
renewables. A positive trend in the installation and development of solar energy has
induced lucrative investments from the Government with INR 3000 crores
(equivalent to 30 billions) being solely set aside for the development of solar energy
in the fiscal year 2016–17 as well as increased the solar photovoltaic targets to
100 GW by the year 2022. Private investments have also played a major part in the
development of solar energy. The major policy changes that were introduced to
boost the renewable energy sector and solar energy sector are briefly discussed.
3.2.1. Electricity Act 2003
The Electricity Act of 2003 was enacted to transform the power sector in the country
and to consolidate laws relating to generation, transmission and distribution of
energy throughout the country. It was introduced with the aim to promote the
development of the electric industry, supply of electricity to all areas especially
rural as well as to rationalize the tariff. This act authorized the Central Government
to introduce polices regarding electricity generation in consultation with the State
Governments. The Tariff Policy came into existence because of the implementation
of the Electricity Act. It suggested a policy that permitted the development of stand-
alone systems. The Electricity Act also aimed to privatize the generation,
distribution and transmission sectors. In accordance with the act, Feed in
Tariff (FIT) and Renewable Purchase Obligation (RPO) were introduced.
3.2.2. Tariff policy (2006)
The Tariff Policy of 2006 was brought into effect in continuation with the National
Energy Policy of 2005. This policy was to include provisions regarding renewable
energy and cogeneration. The Tariff Policy was developed keeping in mind the
framework established by the Electricity Act of 2003. The tariff policy has evolved
over the years in consultation with the state governments and the Central Electricity
Authority. Fig. 3 lists down the main objectives of this policy as:

Fig.3. M ain objectives of Tariff

Policy 2006

The aim of this particular policy was to give special tariff to renewable energy
generation. The Central Government notification suggests that guidelines have been
issued for tariff based bidding process to procure electricity generation and
distribution licences. Through this, the Central Government aims to introduce
competitiveness in the process of price determination. The Central Government
believes that this competition will lead to significant benefits to consumers by
bringing about reduction in capital costs and a significant increase in efficiency.
The tariff policy was further amended on 31st March 2008, 20th January 2011, 8th
July 2011 and the last amendment being notified on 28th January 2016. This
amendment added certain objectives to the original Tariff Policy as more focus was
given to renewables and Hydro power to facilitate adequate and uninterrupted
supply of electricity to consumers.
3.2.3. Integrated energy policy 2006
The Integrated Energy Policy was developed by an expert committee of the
Planning Commission under the directive of the Deputy Chair of the Planning
Commission and the then Prime Minister of India Manmohan Singh. This policy
was brought into effect in August of 2006 addressing all aspects of energy in the
country including energy security, access and availability, affordability and effects
on the environment. Recognizing the adverse effects and the inadequacy of supply
coupled with projected increase in demand for conventional sources of energy, the
policy proposed the following in relation to solar energy:
I. It required power regulators to seek alternate incentive structures that
encourage utilities to integrate solar and other renewable energy
sources like wind, small hydro, and so on into their systems.
II. Requiring power regulators to mandate feed in laws for solar energy as
provided under the Electricity Act 2003.

A general goal of this policy can be summarized to provide safe and convenient
energy at lower cost in an efficient and economically viable and environmentally
sustainable way.

3.2.4. National Action Plan on climate change

Recognizing that climate change is challenge that needed immediate attention,
India, in collaboration with the United Nations Framework Convention on Climate
Change, introduced the National Action Plan for Climate Change (NAPCC) in
2008. The aims of the NAPCC was primarily to address the urgent and critical
concerns of the country as well as to promote the development objectives without
compromising the environment. One of the most successful plans of NAPCC was
the National Solar Mission which aimed to increase the share of solar energy in the
total energy mix of the country. The National Solar Mission also aimed to launch
major R&D programmes in order to create more affordable and convenient solar
systems with provisions for long term storage options. Many research works have
recognized the numerous schemes that have been introduced under the National
Solar Mission that have assisted in electrifying remote areas which earlier had next
to zero access to electricity. Under these schemes Dharnai has become the first
village to achieve 100% installed solar capacity with 100 kW lighting around 450
homes. Along with that, aggressive R&D has also been initiated empowering the
domestic manufacturing sector and creation of intra-state transmission lines in
states like Gujrat, Himachal Pradesh, Karnataka, Madhya Pradesh, Rajasthan and
Maharashtra.
3.2.5. Generation based incentives for solar (2009)
The generation based incentives scheme for generation of energy using solar energy
was introduced in 2009 to boost electricity generation using solar photovoltaics.
This scheme targeted mainly the small grid solar projects below 33 kV and aimed
to lower the gap between base tariff of INR 5.5 and the tariff demanded by the
Central Electricity Regulatory Commission. This was presented as an incentive to
attract private investments in the field of electricity generation using solar
photovoltaics.

3.2.6. Jawaharlal Nehru National Solar Mission (2010)

The Jawaharlal Nehru National Solar Mission is a major initiative by the Central
Government with active participation of the states to promote ecologically sustained
growth while addressing the challenges of energy security and energy poverty.
Before JNNSM, the solar capacity of the country was a mere 17.8 MW. The mission
was announced in 2010 with it being implemented in January 2011. The mission
outlined specific targets of 20000 MW grid connected and 2000 MW of off grid
solar power capacity, including both solar photovoltaics and solar thermal energy.
The main objective of JNNSM is to establish India as a global leader in solar energy.
The mission adopted a three phase approach spanning a period of 10 years with
targets set for each phase based on the success of the previous phase and any
improvement in technology for use of solar energy. Fig. 4 depicts the phase wise
targets of JNNSM:
 Fig.4. Phase wise targets of JNNSM

Several authors published reviews of JNNSM to ascertain whether the targets

mentioned under the above phases could be accomplished. Shrimali et al. identified
JNNSM as one of India's key policy in the field of solar energy. They suggest that
while the policy may be bold in its goal and approach, yet it holds the capability to
transform billions of lives in the country. Harriss-White et al. believe that though
the technologies to accomplish the goals are available, the policy may be obstructed
by the structure of energy subsidies, risk aversion of banks and the failure in
coordination of market-state institution.
Different schemes and policies have been introduced under the JNNSM to
accomplish the targets set for solar power addition. The MNRE, under the tutelage
of the Government of India, has initiated the concept of solar cities. These solar
cities aim at about 10% deduction in the projected demand for the presently used
conventional sources of energy. Over 50 cities have been identified for conversion
into solar cities with a funding of INR 5 million per city varying on the basis of
population and initiatives. In addition to solar cities, development of solar parks has
also been initiated wherein solar parks will be developed in regions with a solar
capacity of over 500 MW supported by appropriate funding by the Government to
develop the necessary infrastructure. As per the latest data published by the MNRE,
solar parks with a capacity of 26.5 GW have been approved all over India in 22
states. The government has also implemented the scheme of awarding concessional
customs duty certificates as a financial incentive to developers for developing grid
connected solar power plants. This scheme offers developers concessions on duty
that is levied on imports and exports. There have also been increased efforts to
develop grid connected solar PV plants on canal banks and tops. With this scheme,
the MNRE intends to set up PV plants of capacity 1–10 MW to an aggregate
capacity addition of 100 MW to help achieve the targets under phase II of JNNSM.
Under this scheme, eight canal top and canal bank projects have been approved in
eight states. A funding of INR 30 million/MW for canal top SPV projects and 15
million/MW for canal bank SPV projects have been approved for each project.

3.3. Policy instruments/incentives: generation based and financial

A number of published works validate numerous policy instruments and incentives

that have been employed by the Government under various policies to improve the
solar energy generation capacity in the country. Timilsina et al. enlist certain key
instruments namely feed-in-tariff, investment tax credits, subsidies, favourable
financing etc. Rohankar et al. reiterate the various financial incentives under various
policies of the Government like long term power purchase agreements, renewable
purchase obligations, renewable energy certificates etc. The following tables (Table
3, Table 4) categorizes different policy instruments that the Government has
employed to promote the development of solar power in the country.
Table 3. Generation based Policy Instruments

Feed-in-tariff FIT is a benchmark tariff issued by the Central Electricity

Regulatory Commission for purchase of solar energy and
other renewable energy.
Renewable This scheme was introduced in the NAPCC by the MNRE. This
Energy Credits scheme provides a predetermined quota for solar. It was
introduced with the aim of enhancing the demand for solar
energy based electricity.
Renewable This policy instrument mandates State and private distributors
Purchase to purchase solar generated electricity.
Obligation
 Table 4. Finance based Policy Instruments

Tax Benefits Under this scheme, the Central Government provides tax
benefits for solar power projects. Under this scheme, the
project developers are exempted from paying taxes on
earnings by selling the power produced from solar energy
for a period of 10 years.
Power Purchase As part of the National Solar Mission in NAPCC, developers
Agreement are permitted to sign a long term power purchase agreement
with special tariff for a period of 10–25 years. This incentive
intends to cover the high capital cost of solar power
installations.
Concessional This incentive was introduced to exempt the developers from
custom and customs and excise charges on the export of certain parts of
excise duty solar plants to avoid the developer pulling out of the project
thus leading to incomplete projects.

A number of capacity building instruments have also been assigned in certain

policies like tax holidays, increasing the amount of foreign investment to 100%,
viability gap funding to reduce the upfront costs of installations.

3.4. International solar alliance

The International Solar Alliance (ISA) is a joint venture of 121 solar rich countries
with the vision to provide a dedicated platform for the cooperation among the
countries to promote global development of solar energy generation. The ISA was
spearheaded by Prime Minister of India Shri Narendra Modi and the President of
France Emmanuel Macron in 2015. The ISA aims to provide a platform where the
global community, including bilateral and unilateral organizations, corporations
and industrial entities can come together to achieve their common goal of increased
development and use of solar energy. The ISA is headquartered in the city of
Gurugram in the state of Haryana, India at the National Institute of Solar Energy
(NISE), which is an organization devoted to the research and development of solar
energy. In the Indian perspective, the targets set under the ISA are to achieve an
installed capacity of 175 GW by 2022, out of which solar accounts for 100 GW.
Globally, the ISA aims to deploy 1000 GW of solar energy generation with an
investment of $1000 trillion.
3.5. Organizations involved in solar energy development

Various public sector as well as educational organizations have been established in

India by the Government to focus on research and development activities on solar
energy. The following section discusses the public sector organizations as well as
several educational institutes set up within the country that take part in promotion
and development of solar energy.

3.5.1. Public sector organizations

Fig. 5 highlights the public sector organizations devoted to the development of solar
energy capacity in India:

Fig.5. Public sector organizations in Solar Energy

 REVIEW OF CURRENT INTERNATIONAL
SCENARIO
1. Introduction
Solar-grid integration is a network allowing substantial penetration of Photovoltaic
(PV) power into the national utility grid. This is an important technology as the
integration of standardized PV systems into grids optimizes the building energy
balance, improves the economics of the PV system, reduces operational costs, and
provides added value to the consumer and the utility. Solar-grid integration is now
a common practice in many countries of the world; as there is a growing demand
for use of alternative clean energy as against fossil fuel. Global installed capacity
for solar-powered electricity has seen an exponential growth, reaching around
290 GW at the end of 2016. According to IRENA’s Renewable Energy Capacity
Statistics (2017), currently China is the leading producer of solar power followed
by Japan, Germany, and United States. Also, solar installed capacity by region has
Europe leading with over 98.8 GW, closely followed by Asia with 92.3 GW. Africa
is least in solar installed capacity with about 1.92 GW. However, Africa is highly
abundant in solar radiation with most of the African countries receiving a very high
amount of bright sunlight resource of days per year that can be used for electricity
generation. Notable areas include the deserts of North & West Africa like Egypt,
Nigeria and some parts of Southern and East Africa which receive long periods of
sunny days with a very high intensity of irradiation. According to the IRENA’s
Renewable Energy Capacity Statistics (2017), Africa has nearly reached a total
solar Photovoltaic capacity of 2.5 GW, representing less than 1.16% of the world’s
solar capacity of 290 GW. In South Africa, the majority of its territory receives in
excess of 2500 h of sunshine per year, and has average solar radiation levels ranging
from 4.5 to 6.5 kWh/m2/day with an annual 24-hour global solar radiation average
of about 220 W/m2. The country is considered to have a high solar energy potential.
In the neighbouring Botswana, according to the World Energy council report
(2016), Botswana receives a high rate of solar insolation of approximately 280–
330 days of sun per year with daily average sunshine ranging from 9.9 h during the
summer to 8.2 h in winter. The average total solar radiation is approximately
2100 kWh/m2/yr. However, the country’s available resource is currently under-
utilized. It is mainly used for domestic solar water heating but PV technology is
also used for small-scale generation systems. Egypt is another country located in
the world’s solar belt and therefore has an excellent solar availability. According to
WEC, average solar radiation ranges from about 1950 kWh/m2/yr on the
Mediterranean coast to more than 2600 kWh/m2/yr in Upper Egypt, while about
90% of the Egyptian territory has an average global radiation greater than
2200 kWh/m2/yr. Egypt’s first concentrating solar power (CSP) plant project at
Koraymat, 90 km south of Cairo, is estimated to include two gas turbines of
approximately 40 MW each, and a 70 MW steam turbine. The overall output
capacity is estimated to be around 140 MW.
Solar-grid integration technology include advanced inverters technology, anti-
islanding technology, grid-plant protection technology, solar-grid forecasting
technology and smart grids technology. Inverter ranges from Light duty inverters
typically (100–10,000 W), Medium duty inverters typically (500–20,000 W),
Heavy duty inverters typically (10,000–60,000 W) continuous output. Energy
created by the solar array powers the loads directly, with any excess being sent to
the utility, resulting in net metering. Due to this interaction with the grid, inverters
are required to have anti-islanding protection, meaning they must automatically
stop power flow when the grid goes down. Currently, advanced inverters devices
that convert direct current solar power into alternating current power for the grid
have features that could be used to help control voltage and make the grid more
stable. During manufacturing inverters are validated their advanced photovoltaic
(PV) capacities by using the ESIF's power hardware-in-the-loop system and
megawatt-scale grid simulators. During simulation inverters are put into a real-
world simulation environment and see the impact of the inverter's advanced features
on power reliability and quality.
Islanding is the phenomena in which a PV power distributed continues to power the
grid even though electrical grid power is no longer present. According to IEEE 1547
Section 4, PV system power must be de-energized from the grid within two seconds
of the formation of an island; this means PV Plant interconnection system shall
detect the island and cease to energize the grid within two seconds of the formation
of an island. Further, the inverter must not connect within 60 s of the grid re-
establishing power supply after a power failure, sometimes called Reconnection
Timing Test. This is often achieved through autonomous island detection controls.
Such controls use one or more of a wide variety of active or passive methods to
detect an island. Normally grid tie Inverters undergoes anti-islanding tests during
manufacturing to check whether they connects and disconnects to the broader
electricity grid safely.
An additional new requirement concerns grid and plant protection (G/P protection).
This is the protective device that monitors all relevant grid parameters and
disconnects the plant from the grid, if necessary. A freely accessible disconnection
point for plants with more than 30 kVA of apparent power is no longer required,
but more extensive grid monitoring including the power frequency and single error
safety is usually stipulated. Plants with less than 30 kVA of apparent power may
still be operated with G/P protection integrated in the inverter. If all inverters
include separate stand-alone grid detection with grid disconnection via the tie
breaker integrated in the device, separate stand-alone grid detection may be omitted
in the central G/P protection. This solution is a considerable cost-saver and is
possible with all SMA inverters.
Grid forecasting involve assessing the grid's health in real time, predicting its
behaviour and potential intervention and quickly responding to events which
require understanding vital parameters throughout the electric infrastructure, from
generation to the end use. According to the ongoing research by NREL’s, the
renewable resource management and forecasting technology focuses on measuring
weather resources and power systems, forecasting resources and grid conditions,
and converting measurements into operational intelligence. NREL’s experts
provide tools to accurately assess renewable energy density (solar energy) as it
varies with time and location as well as information on how to design efficient
renewable energy systems for integration with the electric grid.
A smart grid technology is designed to achieve a high penetration of photovoltaic
(PV) systems into homes and businesses, it is an intelligent system capable of
sensing system overloads and rerouting power to prevent or minimize a potential
outage of power over the grid. According to Kempener et al, when grid upgrades
are required, whether to accommodate any renewable energy or for other reasons,
it is typically much more cost-effective to include smart grid technologies than to
use only conventional technology. Normally there are three different levels of
renewable energy penetration in electricity systems – low, medium and high. These
three levels are defined according to the grid modifications necessary to afford
renewable. Renewable resources capacity penetration levels above 30% are
considered to be high and usually require the use of smart grid technologies to
ensure reliable grid operation. A smart grid technology makes use of sensing and
automated controls in the power transmission and distribution systems. According
to Singapore Energy Market Authority report (2011), the country is installing a pilot
micro grid project on the smaller island of Pulau Ubin, the micro grid will
incorporate solar PV generation, the micro grid is intended to serve as a test bed for
other smart grid technologies and to develop local knowledge and experience with
advanced grid technologies in preparation for future micro grids on other islands
and in commercial settings.
Several researchers have studied solar-grid integration. Zahedi reviewed the
drivers, benefits, and challenges in integrating renewable energy sources into
electricity grid and highlighted the issue of perception by end users. Parida et
al. reviewed solar photovoltaic technologies and concluded that the increasing
efficiency, lowering cost and minimal pollution associated with it have led to its
application in several energy projects such as building integrated systems, pumps,
solar home systems, desalination plant, Photovoltaic and thermal (PVT) collector
technology. In studying load mismatch of grid-connected photovoltaic systems,
Orioli and Ganji reviewed the possible effects in an urban context. The study was
aimed to assess the coverage of the electricity demand and the economic feasibility
of grid-connected photovoltaic systems installed on the roof of multi-storey
buildings. The study confirmed that the load match index of the case-study district
resulted to 42.4%, if no shadowing effect is considered; and lowered to 38.6%
assuming that 10% of the solar radiation is obstructed by the surroundings. This
study was a classical application of solar integration in buildings in relation to the
activities of the surrounding environment. Apart from application to electricity
grids, there are also several other integration projects of renewables. Chong et
al. applied integration technology to a building by designing an innovative 3-in-1
wind–solar hybrid renewable energy and rain water harvester for urban high rise
application.
Renewable energy source integration with power systems is one of the main
concepts of smart grids. Due to the variability and limited predictability of these
sources, there are many challenges associated with integration. This paper reviews
integration of solar systems into electricity grids. The approach in is focused on
integrating Photovoltaics (PV) system to electricity grids. Attention is focused on
inverter technology since the harmonization problem comes mainly from power
inverters used in converting solar generated DC voltage into AC. Solar power as
one of the renewable energy also has environmental impacts, some of which are
significant. The intensity of environmental impacts varies depending on the specific
technology used, the geographic location, and a number of other factors. It is
therefore of utmost importance to also evaluate the environmental impacts of solar
integration. Challenges and benefits of Solar –grid integration are also discussed in
this paper.

2. Solar power generation

Basically, there are two types of solar power generation used in integration with
grid power - concentrated solar power (CSP) and photovoltaic (PV) power. CSP
generation, sometimes known as solar thermal power generation, is much like
conventional thermal power generation that converts thermal energy (steam) into
electricity. However, Photovoltaic (PV) solar panels differ from solar thermal
systems in that they do not use the sun’s heat to generate thermal power, instead
they use sunlight through the ‘Photovoltaic effect’ to generate direct electric current
(DC). The direct current is then converted to alternating current, usually using
inverters and other components, in order to be distributed onto the power grid
network. PV systems do not produce or store thermal energy as they directly
generate electricity and electricity cannot be easily stored (e.g. in batteries)
especially at large power levels. However, concentrated solar power systems (CSP)
can store energy using thermal energy storage technologies. This capability to store
thermal energy has led to better penetration of solar thermal technology using CSP
in the power generation industry as this situation helps more to overcome
intermittency problems which are normally found in PV systems. Due to these
scenarios CSP systems are more attractive for large scale power generation as
thermal energy storage technologies. Although CSP has better performance for grid
integration, the technology and the high cost are currently limiting its large-scale
expansion and deployment as it involves both steam and solar plants which demand
high initial costs. Diminishing costs of PV and even energy market conditions
currently favour Photovoltaic installations.
3. Solar-Grid system
Solar-Grid integration is the technology that allows large scale solar power
produced from PV or CSP system to penetrate the already existing power grid. This
technology requires careful considerations and attentions including in areas of solar
component manufacturing, installations and operation. The levels of solar energy
penetration must be interconnected effectively onto the transmission grid; such
interconnection requires an in-depth understanding of the effects on the grid at
various points.

Photovoltaic plant which uses PV modules to feed into the grid essentially consists
of different components, but basically the inverter is the most important component
for integration. Other components include PV generator (solar modules), Generator
junction box (GJB), Meters, Grid connection, and DC and AC cabling as shown
in Fig. 1. Inverters play a crucial role in any solar energy system and are often
considered to be the brains of a project. An inverter’s basic function is to “invert”
the direct current (DC) output into alternating current (AC) which is the standard
used by all commercial appliances. Inverters are required to supply constant voltage
and frequency, despite varying load conditions, and need to supply or absorb
reactive power in the case of reactive loads. Apart from inverting, inverters do
reconcile the systems with each other and to feed the solar power into the grid with
the highest possible efficiency. A PV installation’s yield is, therefore, just as heavily
dependent on the reliability and efficiency of the inverter as on the orientation,
interconnection and quality of the PV modules.

Fig.6. Diagram of a PV power station

For the 9th year in a row, solar power attracted the largest share of new investments
in renewable energies, followed by wind power. The USD 140 billion (EUR 122
billion) investments in solar energy, accounted for 42.5 % of all new renewable
energy investments. While the annual investment decreased by 13%, the newly
installed capacity of solar photovoltaic power increased by about 5% to over 107
GW in 2018. Over the last 15 years, the production volume of solar PV has
increased with a compound annual growth rate (CAGR) of over 40 %, which makes
the industry one of the fastest growing ones in the world. Until 2006, the solar cell
production was dominated by Japan and Europe. After the rapid increase of the
annual production in China and Taiwan since 2006, a new trend emerged in 2014
to rapidly increase production capacities in other Asian countries such as India,
Malaysia, Thailand, the Philippines or Vietnam. Market development for solar PV
systems did not follow the production at the same pace, which led to overcapacities
and massive price pressure along the production value chain. This development
triggered a consolidation of the manufacturing industry, which is still ongoing.
R&D spending for renewable energies increased by 10% to reach USD 13 billion
(EUR 11.3 billion). About half of this R&D went to solar energy. However despite
the urgent need for a rapid decarbonisation of our energy supply this is still only
10.7% of the total R&D spending of USD 121 billion (EUR 105 billion) for energy.
The trend that the developing economies invest more in renewable energy capacity
than the developed ones continued for the fourth year. The PV industry has changed
dramatically over the last few years. China has become the major manufacturing
country for solar cells and modules, followed by Taiwan and Malaysia. According
to market forecasts, the installed PV power capacity of 520 GW at the end of 2018
could reach up to 1.4 TW by 2024. At the end of 2019, worldwide solar PV power
is expected to reach 650 GW capable of producing roughly 4 % of the worldwide
electricity demand. The EU’s share is about one fifth of the world-wide installed
capacity and can provide about 5.5 % of its electricity demand. Recent 100%
renewable electricity scenarios have highlighted the importance of solar
photovoltaics to achieve this goal and decarbonise the power sector in a cost
effective manner. To realise a carbon free power supply by 2050, the installed PV
generation capacity of about 650 GW at the end of 2019 has to increase to more
than 4 TW by 2025 and 21.9 TW by 2050. This indicates that the installation rate
has to increase by a factor of 2.5 until 2025. The European Union needs to increase
its capacity from 117 GW at the end of 2018 to more than 630 GW by 2025 and
1.94 TW by 2050. In case of a transition to a sustainable transport sector, i.e.
electrification and synthetic fuels, these numbers would need to increase by a factor
of two. 2016 already saw a number of record breaking power purchase agreements
(PPA) contracts and bids below USD 30/MWh and the trend for bids below 25
USD/MWh has accelerated in sun rich regions in 2017 and 2018. The trend
continued in 2019 with offers below USD 20/MWh. These very low bids and PPAs
are only possible through a combination of excellent solar resource, high debt shares
and very low debt costs as well as the fact that some tariffs are indexed to inflation.
PV is a key technology option for implementing the shift to a decarbonised energy
supply and can be deployed in a modular way almost everywhere on this planet.
Over the last decades the growth of PV energy use was mainly driven by public
incentives, but the shift now to economics driven use of solar PV electricity as one
of the lowest cost electricity supplies is obvious.

Reported production data for the global solar cell production1 in 2018 vary between
110 GW2 and 120 GW and estimates for 2019 are in the 120 to 140 GW range. The
significant uncertainty in these data is due to the highly competitive market
environment, as well as the fact that some companies report production figures,
while others report sales and again others report shipment figures. The data
presented, collected from stock market reports of listed companies, market reports
and international colleagues, were compared to various data sources and thus led to
an estimate of 114 GW (Fig.7), representing an increase of about 5 % compared to
2017 and another 10% are expected for 2019. Since 2000, the production of solar
photovoltaic devices has grown with a CAGR of over 40 %. After the rapid increase
of the annual production in China and Taiwan since 2006 a new trend emerged in
2014 to increase production capacities in other Asian countries like India, Malaysia,
Thailand, the Philippines or Vietnam. It is interesting to note that most of these
investments are done by Chinese companies. Another trend in the PV industry was
the rapid increase in original equipment manufacturing (OEM) volumes since 2011,
which allowed larger companies to significantly increase their shipment volumes
without adding new capacity of their own.
 Fig.7. World PV Cell/module production from 2005 to 2019(estimate)

Total investment in the energy sector was USD 1.85 trillion in 2018 [IEA 2019].
Power sector investments accounted for USD 775 billion or 42%. Investments in
renewable power was leading with USD 304 billion, followed by the network
infrastructure with USD 293 billion, fossil-fuel power plants with USD 127 billion,
nuclear with USD 47 billion and battery storage with USD 4 billion. Including the
USD 25 billion investment in renewable energy for transport and heat a total of
USD 329 billion was invested in renewable energy sources compared to USD 806
billion investments for the coal, gas and oil supply. Total new installed renewable
power capacity, excluding large hydro, increased from 158 GW in 2017 to 190 GW
in 2018.

Annual new solar PV system installations increased from 29.5 GW in 2012 to 107
GW world-wide in 2018, driven by a shift to more large scale utility systems on the
one hand and a worldwide reduction of PV system prices on the other side (Fig. 7).
The annual installation in 2018 was about 5% higher than in 2017, increasing the
world-wide PV power to almost 520 GW at the end of 2018. This development
represents the grid connected PV market. To what extent the off-grid and consumer
product markets are included is not clear, because these markets are very difficult
to track. Since 2015, China is the country with the largest PV power capacity. In
2017, China also overtook the European Union in terms of total installed PV power
capacity. With over 44 GW of new connected PV system capacity it reached a total
PV power capacity of 175 GW or 34% of the 518 GW solar PV electric power
capacity installed worldwide at the end of 2018. The European Union follows with
a cumulative installed PV power of 117 GW or 23% of global capacity. This is
down from the 66% share in 2012, when the cumulative installed solar PV electric
power had just reached 100 GW world-wide however, these segments have become
smaller and smaller in relative terms.

Fig.7. Cumilative PV system installations from 2010 to 2019 estimates

Austria

In 2018, Austria installed about 170 MW of new PV systems and increased the
cumulative capacity to 1.44 GW. The electricity generation from PV systems was
1.44 TWh or 2.4% of the national electricity production in 2018. The Ökostrom-
Einspeisetarifverordnung 2012 (Eco-Electricity Act) is the regulation that sets the
prices for the purchase of electricity generated by green power plants. In addition,
there is a federal investment subsidy programme for PV systems with different
sizes. For each of these categories a limited budget is available. In 2019, the
investment costs of PV systems below 100 kWp are supported with a maximum of
EUR 250/kWp and EUR 200/kWp for systems between 100 and 500 KWp.
Greenfield systems (on agricultural land) are not eligible. Storage systems can be
supported with a maximum of EUR 500/kWh and up to a maximum of 10
kWh/kWp installed. In addition to these federal programmes, five federal states
have their own PV programmes and four states have programmes to support the
installation of electricity storage. In June 2017 the Eco-Electricity Act was changed.
For 2018 and 2019 an additional budget of EUR 15 million each year to support PV
systems and electricity storage was agreed [BGB 2017]. At the end of May 2018,
the Austrian Government approved the new Climate and Energy Strategy –
"mission 2030" – for Austria [GoA 2018]. The main issues concerning
photovoltaics are:

 Increase the share of renewables in final energy consumption to 45-50% by

2030. This corresponds to about 80 TWh of electricity or 30 TWH more than
today from hydro, solar and wind.
 In 2030 renewable electricity production should cover 100% of electricity
consumption.
 Investment support programme for "100,000 rooftops with local storage".
 Removal of all taxation on self-generation, currently exempted up to 25
MWh.
 Change incentives to a combination of feed-in premiums, auctions and
investment incentives.

Belgium

The three Belgian regions (Brussels, Flanders and Wallonia) have individual
support schemes for PV, but one electricity market. Therefore, some regulations are
regional and others are national. A common denominator is the fact that all three
regions selected an renewable portfolio standard (RPS) system with quotas for RES.
A net-metering scheme exists for systems up to 5 kWp Brussels or 10 kWp
(Flanders and Wallonia) as long as the electricity generated does not exceed the
consumer’s own electricity demand. In 2011, Belgian installations peaked with over
1 GW of new systems, before starting to decline in 2012. At the end of 2018,
cumulative installed capacity was over 4.25 GW with about 370 MW installed in
that year. About 10 % of Belgian households are already generating their own PV
electricity, and PV power supplied 3.6 TWh or 4.4 % of the country’s net electricity
production in 2018. The proposal of the Belgium Parliament for a new Energy Pact
2050 was published in January 2018 [BKV 2018]. The main issues concerning
photovoltaics are:

 Gradual phase-out of Belgium’s 6 GW of nuclear capacity between 2022 and

2025 and increase of renewables in the power supply to 40% by 2030 (8 GW
of PV, 4.2 GW onshore wind and 4 GW offshore wind).
 Increase of renewables in the power supply to 100% by 2050.
 Increase of renewables in the power supply to 100% by 2050.

Denmark

In 2018 about 180 MW were installed increasing the total capacity to over 1.1 GW.
PV systems generated 953 GWh or 2.8% of the Danish electricity in 2018. At the
end of November 2016, the German Bundesnetzagentur announced the results of
the first cross boarder auction with Denmark: five bids, all of them from Denmark
and to be built there, totalling 50 MW won at a price of 5.38 cents per kilowatt hour
(EURct/kWh) [Bna 2016]. The results of the first Danish cross border auction in
December 2016 revealed even lower prices. The 9 winning tenders will get a fixed
premium of 12.89 Danish øre per kWh (EUR 17.32/MWh) for 20 years on top of
the Danish spot market price, which is fluctuating in the range of EUR 30 to
40/MWh [Ene 2016]. In 2017, the Danish government decided to have a tender for
PV systems smaller than 1 MW in 2018 and a joint tender for solar and wind power
in 2018 and 2019 [Ene 2018a]. The support scheme was approved by the European
Commission in August 2018 [EC 2018b]. In December 2018, the Danish Energy
Agency announced the six winning bids of the 2018 technology neutral tender [Ene
2018b]. Three solar photovoltaic pro- 17 jects with a combined capacity of 104 MW
and bids for tariff premiums between DKKøre 2.84 and 2.98 per kWh (EURct5 0.38
and 0.40 per kWh) were selected. In February 2019, Better Energy announced the
signature of a 125 MW commercial Power Purchase Agreement (PPA) in Denmark
[Bet 2019]. The PV plant is scheduled to be operational in 2020.

France

In 2018, 873 MW of new PV systems were connected to the grid in France [Rte
2019]. Total cumulative connected capacity in mainland France and Corsica
increased to over 8.5 GW. In addition, total capacity in the French Overseas
Departments stood at about 390 MW [Sta 2019]. Electricity production (continental
France and Corsica) from PV systems was 10.2 TWh or 2.1 % of the national
electricity consumption [Rte 2019]. On 22 July 2015, France’s National Assembly
adopted the Energy Transition for Green Growth Act. The legislation aims to reduce
France’s reliance on nuclear to 50 % of power generation by 2025 and increase the
share of renewable energies in the final gross energy consumption to 23 % in 2020
and 32 % in 2030 [MEE 2016]. The targets for PV to achieve the 2023 goal are 10.2
GW installed PV power by 2018 and between 18.2 and 20.2 GW by 2023. Under
the new support mechanism, feed-in tariffs are only available for systems below
100 kW capacity and tenders for systems above. However, there is still a difference
for the larger systems: Systems between 100 and 500 kW bid for fixed tariffs, larger
systems for a market premium. In the first half of 2018 PV systems with a capacity
of 479 MW were connected to the grid [Sta 2018]. The capacity of projects in the
planning stage increased to 6 GW, of which 2.5 GW already had a signed
connection agreement. In 2016, the mandatory introduction of smart meters started
and should be completed by 2021. This measure provides an indirect support
measure for small self-consumption systems, because it removes the grid
connection costs. These costs were in general more than 12% of the price of a 3 kW
system.

Germany

Compared to 2017, new PV system installations in Germany saw an increase of

almot 80% to 3.14 GW, with about 760 MW free-field systems as a result of
previous auctions [Bun 2019]. About half of new PV systems are now being
combined with electricity storage systems. For the first 8 months of 2019 the
Bundesnetzagentur reported the registration of PV projects with 2.7 GW. The
German market growth is directly correlated to the introduction of the Renewable
Energy Sources Act (Erneuerbare Energien Gesetz EEG) in 2000 [EEG 2000]. This
law introduced a guaranteed feed-in tariff (FiT) for electricity generated from solar
PV systems for 20 years and already had a fixed built-in annual reduction which
was adjusted over time to reflect the rapid growth of the market and corresponding
price cuts. However, the rapid market growth required additional adjustments. Until
2008, only estimates of installed capacity existed, so a plant registrar was
introduced on 1 January 2009. Since May 2012, the FiT has been adjusted on a
monthly basis depending on the actual installation of the previous quarter. The
revision of the EEG in 2014 changed the system size for new systems eligible for a
feed in tariff and introduced levels of levies on self-consumption [EEG 2014]. So
far systems with a capacity of less than 10 kWp are excepted form the levy. For all
other systems, the levy on each self-consumed kWh increased to 40% on 1 January
2017. Since 1 September 2015, owners of new ground mounted systems have to
participate and win an auction of the Federal Network Agency. The total amount of
capacities auctioned is determined by political decisions and limits this market
segment. Starting on 1 January 2016 only systems smaller than 100 kWp are eligible
for a fixed feed in tariff and since then also larger rooftop systems have to market
their electricity take part in auctions. The relevant feed-in-tariffs are regularly
published by the Bundesnetzagentur. The fact that the tariff for residential PV
systems smaller than 10 kWp (October 2019: EUR 0.1018/kWh) is now well below
the average variable electricity rate consumers are paying (EUR 0.267- 0.331/kWh)
and the fact that they are still exempt from the EEG levy makes self-consumption
attractive and opens up new possibilities for the introduction of local storage. Since
July 2017 a programme to support self-consumptions for tenants of multi apartment
buildings exists, but until September 2019 only about 435 PV systems with 9.5 MW
cumulative power were installed [Bna 2019]. Between May 2013 and December
2018, the Kreditanstalt für Wiederaufbau (KfW) has been offering low interest
loans to install storage for PV systems up to 30 kWp [KfW 2013, 2016].

Spain

Spain takes the fifth place in Europe with regard to the total cumulative installed
capacity, at 5.6 GW7 . Most of this capacity was installed in 2008 when the country
was the largest market, with over 3.3 GW [IEA 2014]. As a consequence, the
Spanish Government started to introduce a number of regulations in order to limit
the growth of the sector already in 2008 and suspended the remuneration pre-
assignment procedures for new renewable energy power capacity in January 2012.
The justification given for this move was that, until then, Spain’s energy system had
amassed a EUR 24-billion power-tariff deficit. The government argued that the
special regime for renewable energy was the main reason for this. However, this
argument was more than questionable as the deficit already amounted to almost
EUR 9 billion in 2007, a time when payments under the special regime for
renewable energy were still limited. After peaking in 2013 with EUR 28.8 billion
the deficit had decreased to EUR 23 billion at the end of 2016 [CNM 2017].
According to press reports, Moody's estimates that the deficit will decrease by over
9% from the EUR 21 billion at the end of 2017 to about EUR 19 billion at the end
of 2018 [Eur 2018]. A more detailed description of the development of the Spanish
market can be found in earlier PV Status Reports [Jäg 2016]. In 2018, new PV
systems were installed with a capacity of 262 MWAC. The Spanish photovoltaic
energy association (UNEF) estimates that electricity from PV systems for self-
consumption, which are not counted by the official electricity statistic generated
about 580 GWh in 2018. In the same year, electricity generated from grid connected
PV systems contributed 7.78 TWh or 3 % of the Spanish electricity generation [Red
2019]. After five years of very little new PV power additions, the coming years will
see significant solar capacity additions because of the national target to 100%
renewable power sector by 2050. In July 2017, the Spanish Ministry for Energy and
Tourism announced the winners of the second renewable energy auction in 2017
and solar photovoltaic power projects had won 3.9 GWAC in this auction [MET
2017]. The winning consortia have to connect the systems before the 1st January
2020. Merchant projects, wherein there is no regulated income, represents another
driver for the solar photovoltaic market.

UK

Between 2011 and 2018 the solar photovoltaic electricity capacity increased from
less than 100 MW to 13.1 GW at the end of 2018 [GUK 2019]. In 2018, PV systems
generated 12.9 TWh or 3.8 % of the UK electricity generation. In the first six
months of 2019 136 MW of new solar photovoltaic capacity was registered. The
old FiT scheme for systems up to 5 MW closed on 14 January 2016 and a new
scheme opened on 8 February 2016, with different tariff rates and rules — including
a limit on the number of installations supported in various capacity bands [GUK
2016]. The new scheme offers a ‘Generation Tariff’ for each generated kWh and in
addition an ‘Export Tariff’ for up to 50 % of the generated electricity, which is not
consumed on-site at the time of generation (self-consumption). Both tariffs are
adjusted each quarter and depend in addition whether or not the respective band
caps are reached. Larger systems can participate in Contracts for Difference
Allocation Rounds. In the first round, which was held in 2015 five projects with a
total capacity of 72 MW won contracts with a strike price of GBP 50 (two projects
with 33 MW) and 79.23 per MWh (three projects with 39 MW). However, two of
the five projects were withdrawn and one contract was cancelled. There is only
confirmation of one project that was connected to the grid on 30 June 2016. The
second round planned for October 2015 was cancelled and finally took place in
April 2017, but solar was not included. The Renewable Obligation Certificate
(ROC) scheme introduced in 2012 ended on 31 March 2017.

Australia

In 2018, about 4.1 GW of new solar PV electricity systems were installed in

Australia, bringing the cumulative installed capacity of grid-connected PV systems
to 11.6 GW. Different from previous years the utility scale market with 2.36 GW
exceeded the residential market with 1.7 GW [Ega 2019]. In the first six months of
2019 PV systems with 1.8 GW have already been registered increasing the number
of homes with PV systems to over 2.1 million. The national penetration of homes
with PV systems has exceeded 20 %, and in some urban areas it is even more than
50 %. The average PV system price paid by the customer for a grid-connected
system fell from AUD 6/Wp (EUR9 4.29/Wp) in 2010 to AUD 1.03/Wp (EUR10
0.65/Wp), including the Small-scale Technology Certificate discount (STC) in
August 2019 [Sol 2019a]. The STCs are a mechanism of the Small-Scale
Renewable Energy Scheme (SRES) to support residents and businesses that install
systems under 100 kW. STCs are officially created once an accredited Solar
Installer has commissioned the system. As a result, the cost of PV generated
electricity has fallen below the average residential electricity rate, which, depending
on the state, varies between AUD 0.223 and 0.376/kWh (EUR 0.139 – 0.235/kWh).
In 2018, PV electricity systems generated about 15.4 TWh or 5.9 % of Australia’s
total electricity demand. The total renewable electricity share was 18.9 % and this
should increase to 20 % by 2020.

Japan

In 2018, the Japanese PV market decreased by about 12 % to 6.6 GW. Cumulative

installed capacity reached 56.1 GW at the end of 2018. According to the Institute
for Sustainable Energy Policies, solar photovoltaic electricity contributed 6.5% of
the total electricity generation in Japan in 2018 [Ins 2019]. This was more than the
share of nuclear (4.7%). The area with the highest share of PV connected to the
power grid is served by Kyushu Electric Power. Here the PV share reached 11.1%,
but at the same time nuclear was 25.5% in 2018. The fact that nuclear power output
can hardly be adjusted, led to a number of curtailments of solar PV power from
October 2018 on. Under the FiT scheme, introduced in July 2012 and amended in
the following years [METI 2013], 76.7 GWAC13 had received approval until the
end of March 2019. However, only 44.6 GWAC had been commissioned and were
in operation. Because a significant discrepancy between actual installations and
permits given emerged starting already in 2013, the Ministry of Economy, Trade
and Industry (METI) started to revise the list of projects according to their actual
status and revoked permits for projects that had failed to secure land and equipment
by given deadlines. Until 2010, residential rooftop PV systems represented about
95 % of the Japanese market. Since 2011, due to changes in the permit system, large
ground-mounted systems as well as large commercial and industrial rooftop
systems started to increase their market share and represented more than 90 % in
2016. Of the 76.7 GWAC approved by the end of March 2019, only 6.4 GWAC or
8.3 % comprised systems smaller than 10 kWp. However, over 95 % of these
systems were actually connected to the grid. PV systems with capacities over 2
MWAC represented 32 % of the approved capacity, but only 30 % of them had
started operation. On 25 May 2016, the bill for the revision of the Act on Special
Measures Concerning Procurement of Electricity from RES by Electricity Utilities
was enacted and put into force in April 2017. The main change besides a review of
the tariffs itself is the fact that new projects with more than 2 MW capacity will
have to participate in auctions. In the first auction of 2017, which had a ceiling price
of JPY 21 kWh (EUR14 0.162/kWh), 9 projects with a capacity of 141 MW were
successful. However, only 4 projects with a capacity of 41 MW actually paid the
required deposit to get the approval. The second auction at the beginning of
September 2018, no project was below the ceiling price of JPY 15.5/kWh (EUR
0.119/kWh), which was not disclosed to the bidder beforehand. A third auction in
December 2018 resulted in 7 winning bids with a total capacity of 197 MW. The
winning bids ranged between JPY 14.25 and 15.45/kWh (EUR 0.110 – 0.119/kWh),
below the ceiling price of JPY 15.5/kWh (EUR 0.119/kWh), which again was not
disclosed to the bidder beforehand. Starting in FY 2019, projects above 500 kW
have to participate in the auction scheme. Japan's fourth solar auction, which was
concluded early September 2019 ended with the allocation of 196 MW of solar
capacity. However, despite 300 MW were available the auction attracted only bids
of 266 MW. The successful bids ranged between JPY 10.5 and 13.99/kWh (EUR
0.086 – 0.117/kWh). The undisclosed ceiling price this time was JPY 14/kWh (EUR
0.117/kWh). It is worthwhile to note that 59 out of the 63 successful bids were for
systems below 2 MW, which for the first time had to participate in an auction. A
fifth auction with a volume of 416 MW is scheduled for December 2019. New
projects approved after 1 April 2017 now have three years maximum until they have
to be connected. Feed in tariffs for FY 2019 were set as follows. Commercial
installations (total generated power) between 10 and 500 kWp, receive a tariff of
JPY 14/kWh (EUR15 0.117/kWh) for 20 years. For residential installations (surplus
power) smaller than 10 kWp the basic FiT is JPY 26/kWh (EUR 0.217/kWh, if the
system is equipped with an output control device or JPY 24/kWh (EUR 0.200/kWh)
without such a device for 10 years. In November 2009, the Japanese Government
introduced the scheme to purchase surplus electricity from residential PV systems
at a rate of JPY 42/kWh for 10 years. This implies that the first system will leave
this scheme form November 2019 on. This means that the owners of PV systems
with about 3.5 GW of capacity will see the end of their payments between
November 2019 and the end of 2020. Until September 2020 companies have set up
schemes to buy the surplus electricity from these owners at prices between JPY 8
and 10/kWh from November 2019 on. As a consequence of the accident at the
Fukushima Daiichi Nuclear Power Plant in March 2011 the country’s energy
strategy was reshaped. An official target of 28 GWAC was set for PV power in
2020, which was already surpassed in FY 2015. In 2015, a new target of 64 GW of
PV capacity in FY 2030 was set. The 5th Strategic Energy Plan was approved by
the Japanese Cabinet on 3 July 2018 [METI 2018]. This new plan aims to increase
the self-sufficiency of electricity production from 8% in 2016 to 24% in 2030 and
to reduce GHG emissions by 80% until 2050. At the current pace of PV installations
in Japan, the 2030 target of 64 GW is very likely to be reached in the current FY
2019. Therefore, an initiative to increase the target to 150 GW by 2030 was started
in February 2018. One year later an action plan with eight recommendations how
to achieve the 2030 target was published [Ikk 2019].
Malaysia

The Malaysia Building Integrated Photovoltaic Technology Application Project

was initiated in 2000, and by the end of 2009 a cumulative capacity of about 1 MW
of grid connected PV systems had been installed. The Malaysian Government
officially launched its Green Technology Policy in July 2009 to encourage and
promote the use of renewable energy for Malaysia’s future sustainable
development. The target was that about 1 GW must come from RES by 2015,
according to the Ministry of Energy, Green Technology and Water. In April 2011,
renewable energy FiTs were passed by the Malaysian Parliament with the target of
1.25 GW being installed by 2020. The tariffs are set by the Sustainable Energy
Development Authority (SEDA) for each year. For 2018 the basic tariffs for
systems up to 1 MW are between MRY 0.4435 and 0.6682/kWh (EUR 0.092 to
0.181/kWh16), depending on the type and system size. For local manufacturing or
use as building materials surcharges between MRY 0.05 and 0.1256/kWh (EUR
0.01 to 0.026/kWh) apply. According to SEDA, PV systems with more than 380
MWAC of capacity received the FiT and were operational by the end of July 2019
[Sed 2018]. Until 2020, Malaysia aims to implement 500 MWAC of PV capacity
under the Net Energy Metering (NEM) programme. However, the uptake of the
programme is still slow. In addition the government introduced the Large Scale
Solar (LSS) Programme in 2016, which aims at a solar capacity of 1.2 GWAC by
2020. In addition to the first two biding cycles with a total awarded capacity of 958
MWAC throughout 58 projects, 8 projects with a capacity of 270 MWAC were
directly awarded until April 2018. The third bidding round was launched in
February 2019 with a capacity of 500 MWAC. In 2018 around 410 MWAC (490
MWDC) were installed increasing the total capacity to 738 MWAC (886 MWDC)
[Sed 2019]. The largest share with over 310 MWAC came from ground-mounted
utility scale projects. The annual capacity additions in this segment were larger than
the total rooftop capacity of 303 MWAC at the end of 2018. Almost a dozen of
companies have set up silicon solar cell or CdTe-thin film manufacturing plants in
Malaysia, amounting to more than 9 GW of production capacities. In addition, there
are additional smaller silicon module manufacturing companies. In total about 250
companies are involved in upstream solar PV activities such as poly silicon, wafer,
cell and module production and downstream activities such as inverters and system
integrators. In 2018 the number of solar jobs in the solar sector increased by over a
third to more than 54 000 jobs compared to 2017 [Jas 2019].

People’s Republic of China

According to the National Energy Administration (NEA) 44.3 GW of solar PV

power was connected to the grid in 2018 increasing the total grid connected capacity
to over 175 GW [NEA 2019]. About 21 GW were residential PV systems and 23.3
GW utility scale systems. Electricity production from PV systems in 2018 was 178
TWh or 2.6% of total electricity demand [Cep 2019]. Curtailment of PV generated
electricity decreased from 7 TWh in 2017 to 5 TWh in 2018. Market expectations
for 2019 are between 35 and 40 GW. In the first half of 2019, 11.4 GW of new PV
power capacity was connected to the grid [Nea 2019a]. On 10 July 2019, NEA
announced the list of successful bidders in the first solar auction [NEA 2019b]. 366
utility scale projects with a capacity of 18.1 GW as well as 3 555 industrial and
commercial projects with a capacity of 4.5 GW were successful. The 2019
International Energy Agency (IEA) Renewable Energy Medium-Term Market
Outlook expects an addition between 250 and 320 GW new PV capacity between
2019 and 2024, which would increase the total capacity between 425 and 500 GW
[IEA 2019b]. However, looking at the current developments, this capacity will be
reached much earlier. In July 2017, the National Energy Administration (NEA)
published the new implementation guide for the 13th Five Year Plan (2016 -2020)
[NEA 2017]. In this guide, 86.5 GW of new PV capacity is foreseen, i.e. 54.5 GW
ground mounted systems and 32 GW "Top Runner Programme" installations.
Together with the 45 GW of PV capacity foreseen in the Poverty Alleviation
Programme of the 13th Five Year Plan and the already connected capacity of over
110 GW at the end of July 2017, this could bring the total capacity to over 240 GW
in 2020. According to the 13th Five Year Plan (2016-2020) adopted on 16 March
2016, China intends to continue cut its carbon footprint and become more energy
efficient. The share of non-fossil energy should increase from 12 % in 2015 to at
least 15 % by 2020. Further targets are 18 % fewer carbon dioxide emissions and
15 % less energy consumption per unit of GDP in 2020 compared to 2015. Under
this Plan, investment in non-fossil power should be RMB 2.3 trillion (EUR17 309
billion) and about RMB 2.6 trillion (EUR 349 billion) are foreseen for the upgrade
of the grid infrastructure of which RMB 1.7 trillion are intended for the distribution
network [Cai 2015, Wan 2016]. In 2018, 14.2% of China's energy supply came from
non-fossil sources, just 0.8% short of the 2020 target. As China is ahead of its plan,
the representative of the National People's Congress (NPC) Liu Hanyuan, who is
also chairman of the Board of Directors of Tongwei Group, brought a number of
proposals to the March 2019 sessions of the NPC calling for more ambitious targets
[Cec 2019]. His proposals called for non-fossil energy targets of 20% in 2020, 30%
in 2030, and over 50% in 2050. Consolidation of the Chinese PV manufacturing
industry is continuing. The ongoing price pressure for solar modules and the
emergence of large 20 GW+ companies is adding to the pressure on all the solar
module value chain companies. This price pressure will certainly accelerate the
move of manufacturers to higher efficient products, namely changing the respective
market shares of multi-and mono-silicon wafers in solar cell production. Further
cost reductions come not only from higher efficiencies, but thinner wafers, made
possible by the rapid uptake of diamond wafer sawing, as well. Polysilicon material
consumption is expected to drop from an average of roughly 4.0 g/W at the end of
2018 to less than 3 g/W in 2023.

Singapore

In June 2012, the Energy Conservation Law was published which aims to reduce
Singapore’s energy intensity by 35 % from its 2005 levels by 2030 [GoS 2012]. In
January 2014, the Sustainable Energy Association of Singapore (SEAS) published
a White Paper sketching the pathway to installing 2 GW of PV by 2025 [Sea 2014].
According to the Energy Market Authority of Singapore, 55 MW of grid connected
systems were installed in 2018, increasing the total capacity to 206 MW [EMA
2019]. In the first half of 2019 about 57 MW were already installed.

United Arab Emirates (UAE)

At the moment the UAE has no federal energy policy, because the constitution gives
autonomy in management and regulation of energy and resources to the individual
emirates. Nevertheless, there is growing recognition of the need for coordination,
consistency, and co-investment among emirates and the Ministry of Energy is now
leading the country’s first effort to develop a national strategy. IRENA has
developed a Renewable Energy Roadmap for 2030, which calls for 21 GW of solar
PV power to be installed by 2030 [Ire 2015]. According to a press report by ‘The
National’, the UAE is aims to generate 25 % of its electricity with clean energy
(nuclear and solar) by 2030 [Nat 2016]. At the end of 2018 about 220 MW of PV
power was operational. In January 2015, a consortium led by ACWA Power (Saudi
Arabia), won the bid of the 260 MW Phase II (200 MWAC) of the Mohammed bin
Rashid Al Maktoum Solar Park (Dubai) with a bid of USD 5.84/kWh for a 25-year
PPA starting in 2017 [Acw 2015]. The third phase of 800 MWAC was won by a
consortium led by Masdar with a bid of USD 29.9 per MWh [Mub 2016]. The
project will be commissioned in three steps:

 200 MWAC – operational since May 2018,

 300 MWAC – operational since June 2019 and
 300 MWAC by April 2020.

In September 2016, a consortium led by JinkoSolar (China) and Marubeni (Japan)

entered a bid of USD 24.2 per MWh for the Abu Dhabi Electricity and Water
Authority’s (ADWEA) Sweihan solar power tender [Nat 2016a]. This power plant
with a capacity of 1.2 GW was connected to the grid in the first half of 2019. In July
2019, the Emirates Water and Electricity Company (EWEC) launched a 2 GW
tender. The deadline for bids is the fourth quarter of 2019 and commercial operation
should commence in the first quarter of 2022.
 CHALLENGES
The abundance of solar resource is not the only factor involved in the development
of solar energy generation capacity of the country. Several factors prove to be an
obstacle in installing solar PV plants and operating them at their full capacity. The
following section briefly discusses the various challenges that need to be overcome
in order to achieve the capacity addition targets. They can be subcategorized as
under:

4.1. Technological barriers

Although the solar photovoltaic technology has taken enormous leaps when it
comes to technology, it still hasn't proven to be enough. Research suggests that the
low conversion efficiency of solar photovoltaic technology compared to
conventional systems remains to be the biggest technological challenge in
development of solar energy systems. Another barrier is that PV plants are rarely
able to provide an immediate response to load demand. This problem does not arise
in conventional power plants and thus makes them more effective. Although the use
of storage mechanisms like battery banks helps deal with this challenge but
autonomy can only be provided for so many days without increasing cost and size
of plant. As it has been mentioned in earlier sections, a different variety of solar PV
technologies are available in the market. But the efficiencies of each of these
technologies looks considerably low in comparison to conventional power plants.
Several studies also depict various other technological barriers in the development
of solar energy generation like the intermittent nature of solar radiation which
hampers the ability of the PV system to meet the consumers demand, difference in
the standard conditions and real time conditions also effect the performance.
Component failure often leads to inability of solar PV system to generate electricity
until the component is replaced. Operation in high temperature and mismatch in
output from individual panels in a PV array often leads to the creation of hotspots
which reduce the efficiency of the solar PV plant. These hotspots in the long run
cause severe deterioration of the PV panel thus increasing the cost of maintenance
and repair. To avoid the formation of hotspots, quality check is a must for PV
module developers. Standards must be set for the manufacturer to improve the
quality and lifetime of the PV modules.

4.2. Economic barriers

High initial investment cost of the PV technologies often leads to discouragement

among developers who refrain from investing in solar PV technologies. Absence of
a proper financing mechanism poses a challenge in the development of PV
installations. Research indicates that the investment required for PV installations is
relatively for developing countries due to a variety of factors. These factors also
cause a hindrance in solar PV development in the country. Dobrotkova et al. studied
the cost viability of solar PV prices in developing countries. They concluded that
even though low cost of PV installations is possible, it requires the support of a
variety of factors like high capacity factors, low cost of auxiliary equipment, low
risk investments etc. Their research suggests that there are concerns among experts
over the process of auction based PV procurement as they believe that auctions may
lead to unviable prices that may lead to poor quality of projects.
The interdependency of markets and prices often leads to developers backing out of
projects due to unforeseeable risks. Nowadays, although various tax exemptions
have been implemented on solar PV technologies, tax still remains a hurdle in low
cost solar PV development. The cost of energy produced using PV technology is
measured using levelized cost of energy. The economics of solar PV generation
take into consideration the factors like cost of PV panels, battery sizing, peak ratings
of load, power factor required etc. These are to be borne by the consumer. These
factors often increase the investment costs for installations and thus discourage
consumer interest in the technology.

4.3. Environmental barriers

Many studies indicate that while solar energy is cleaner than conventional energy
sources, it still brings with it many environmental impacts that can cause harm to
the environment as the years pass. Shahsavari et al. state that major environmental
impact due to the PV technology happens during the process of manufacturing of
PV panels. This happens due to the use of toxic compounds in the production lines.
Another study indicates that Cadmium telluride and copper indium selenide thin
film technologies may harm the environment due to the presence of selenium.
While crystalline silicon panels’ composition mostly comprises of non-hazardous
waste, the mass of thin film and cadmium telluride etc. consist of hazardous material
that may need proper treatment. The use of PV panels and batteries adds to the e-
waste from the PV plant over its lifetime. The recycling of e-waste remains a big
challenge in combating the impact of PV technology of the environment.

4.4. Social barriers

Making full use of the advantages offered by solar PV technology still hasn't been
possible majorly due to lack of social awareness about the technology. This is a
hurdle in the development of solar PV systems especially in developing countries.
Lack of understanding of the technology has proven to be an obstacle in the
acceptance of solar PV as an option by the local consumers. Inadequacy of land also
is a problem as large areas of lands are required for the construction of large
capacity solar PV power plants.

4.5. Auxiliary barriers

Many studies enlist a number of challenges in the development in of solar PV

systems in the country. These challenges may be of small magnitude but their
effects can be felt on a bigger scale. Dust deposition and inadequate cleaning of
solar panels often causes decrease in the efficiency of the panel as dust obstructs
the incoming insolation from the sun. Also uncertainties and unavailability of
weather data leads to improper design of the system for any given loads. This may
cause reduction in the lifetime of the system leading to less or no return on
investment for the developer. Authors suggest that lack of legal framework for
independent power producers coupled with restrictions on siting and construction
also obstruct the PV development in the country. Another study indicates that lack
of storage technologies, shortage of certain materials is another obstacle that must
be dealt with to improve the status of PV installations in the country. Market failure
due to external factors often hinders the solar PV development. Factors may be the
high financial risks due to future uncertainties of return on investment in scheduled
time period, underinvestment in solar PV technology etc.
In most electric utility systems, power flows in one direction - from centralized
generators to substations, and then to consumers. With solar power generation,
power can flow in both directions. However, most electric distribution systems were
not designed to accommodate two-way flow of power. For distribution feeder
circuits that are long and serve rural or developing areas, even small amounts of PV
may impact system parameters if the load and PV generation are not closely
matched. When PV generation exceeds local energy demand, energy will move
through the distribution feeder and possibly through the local substation, increasing
the potential for damage to the utility grid and for impacts to other utility customers
served by the same distribution circuit.
For large-scale PV projects or farms, most of which are located far away from urban
centers, they often require transmission lines to carry the electricity long distance
to where it will actually be used. This requires more investment in building the
transmission lines and often results in “line losses” as some of the energy during
transportation are converted into heat and lost.

Some notable challenges associated with Solar-Grid integration include problems

of voltage stability, frequency stability, and overall power quality. According to
Belcher et al., a distributed system is considered large-scale when loading on the
system is greater than 10 MW. Systems under this limit do not qualify for power
integration and usually have many power quality issues. However, large-scale
systems also experience power quality problems. Power generation plants that use
the conventional method to spin a turbine benefit from having complete control over
generation, Photovoltaic generation does not have the luxury of producing power
on demand. Power quality issues range from voltage and frequency to other areas
such as harmonics. The harmonics problem comes mainly from power inverters
used in converting renewably generated DC voltage into AC. Harmonics are created
by certain loads who introduce frequencies that are multiples of 50 or 60 Hz and
can cause equipment to not operate as intended. The inherent non-dispatchable
characteristics of PV systems (i.e. generation of electrical energy that cannot be
turned on or off in order to meet societies fluctuating electricity needs) allow
voltage generation fluctuations that have not previously been present in the grid. In
order to combat these voltage issues, storage solutions along with other
instantaneous power producing solutions are on the forefront of current PV research
and development. Alongside the intermittency of PV generation itself, there are also
grid-connected voltage quality issues that must be considered. Power plants must
be able to ride-through various voltage levels sags in order to operate with-out
outages. This requires that PV plants should be adaptable to voltage sags just as
conventional power plants.
PV is also the only solar power generation technique that does not result in inertial
power generation which proves to be a challenging problem with large-scale grid
integration. The lack of inertia injected into the grid is the result of the lack of a
rotating machine in PV integration.
Another major challenge is the variability of insolation. The amount of generation
from Photovoltaic or PV systems depends on the amount of insolation or sunshine
at any given location and time. Both under-generation and over-generation could to
instability on the grid. A solution sequence fort his challenge involves:
 Using better forecasting tools to allow for more accurate predictions of when
solar generation might decline to the minimum penetration capacity
 Installing solar across a large geographic area to minimize any impact of
generation variability due to local cloud cover
 Shifting electricity supply and storing excess energy for later use
 Shifting electricity demand by encouraging customers to use electricity when
it is more readily available.

Solar PV’s variability can also be mitigated by dispersing solar farms across a wide
geographic region or deployed on a very incremental basis; there is no standard
capacity size that must be considered. PV generation is immensely flexible in this
regard as it can be sized on a scale of hundreds of kilowatts to hundreds of
megawatts. By deploying solar farm in smaller amounts across a wider region, a
utility can smooth out any site-specific cloud variability and related quick ramping
up and down. Targeting specific geographic locations for PV installations can also
allow the utility to solve localized voltage concerns, where siting generation assets
(particularly those with emissions) can be problematic.
There are environmental issues associated with solar-grid integration. Solar energy
sources have environmental impacts, some of which are significant. Normally the
intensity of environmental impacts varies depending on the specific technology
used, the geographic location, and a number of other factors. By understanding the
current and potential environmental issues associated with each renewable energy
source particularly solar energy source, steps can be taken to effectively avoid or
minimize these impacts. Depending on their location, larger utility-scale solar farms
can raise concerns about land degradation and habitat loss. According to the report
of Union of Concerned Scientists, “the total land area requirements for solar farms
vary depending on the technology, the topography of the site, and the intensity of
the solar resource. The estimates for PV systems range from 3.5 to 10 acres per
megawatt, while estimates for CSP facilities are between 4 and 16.5 acres per
megawatt”. Unlike wind facilities, there is less opportunity for solar projects to
share land with agricultural uses. However, land impacts from solar systems can be
minimized by sitting them at lower-quality locations such as brown fields,
abandoned mining land, on the sea/lake or existing transportation and transmission
corridors.
The PV cell manufacturing process includes a number of hazardous materials, most
of which are used to clean and purify the semiconductor surface. These chemicals
include hydrochloric acid, sulfuric acid, nitric acid, hydrogen fluoride and acetone.
The amount and type of chemicals used depends on the type of cell, the amount of
cleaning that is needed, and the size of silicon wafer. Workers also face risks
associated with inhaling silicon dust. Thus, PV manufactures must follow laws to
ensure that workers are not harmed by exposure to these chemicals and that
manufacturing waste products are disposed of properly.
 CONCLUSION

Integrating PV system into national grids can reduce transmission and distribution
line losses, increase grid resilience, lower generation costs, and reduce requirements
to invest in new utility generation capacity. The goal of this paper was to review the
current and future discussions regarding generation and integration of large-scale
solar generation into a conventional fossil-fuel dominated grid. Most of the research
has shown positive results on integration. The effects of this integration on system
stability and security should therefore be considered carefully even before
installations of plant. The use of advanced integration technologies should be
considered before plant installation, this will help the generation and distribution
company to foresee the possible impact of PV integration and generation on system
stability.
Although solar energy development has started picking the pace, rooftop generation
still remains to an area were significant strides have not taken place. The
suggestions discussed in previous section may help overcome that hurdle and
provide an alternative for large scale installation issues like land availability, long
range transmission, large auxiliaries etc. Technological advances also are required
to help meet the targets of solar PV installations. With aggressive R&D, the correct
policy implementation and proper financial schemes to address the issue of funding
for PV installations, solar energy generation can accelerate the development process
in India. Many educational programmes initiated by the government have increased
the research being undertaken in the field of renewable energy. Setting up of
separate centres and schools with the purpose of undertaking research projects in
the field of solar energy has been a welcome step in the direction of enhancing the
use of these energy sources. Over thirty centres have been set up under various
scholarship programmes in India. A large research base all over the country gives
the government the luxury to implement and encourage research and
development of solar energy.