Rapid fall in solar prices and increase in cost of conventional power driven by fuel shortages has brought `grid-parity` closer, which is expected to happen at a broad scale level by 2017 in India, according to the KPMG report.
KPMG report reveals that the rooftop solar power will see parity faster with utility tariffs due to high T&D losses and cross-subsidies present today and parity in many categories can emerge as early as 2014. For this segment, the solar lease model could become a game-changer.
“Solar power technology can help India leapfrog in the energy sector as we are in a unique position in time when solar power costs are becoming competitive with alternate sources at a time when our energy requirement is going to grow two times over the next decade. The analogy is similar to what happened in the telecoms sector where cellular technology helped us rapidly meet our demand for communication services,“ says Santosh Kamath, partner, KPMG in India.
“Given the issues of fuel shortages and import dependence of the energy sector, solar power should be given a significant strategic thrust by the Government. The National Solar Mission (NSM) has made a good beginning. The momentum should be sustained if the investments made by the country in the last few years are to give the full benefit,“ says Arvind Mahajan, partner, head of energy and natural resources vertical at KPMG in India.