Rise of Solar Power Industry
The solar power industry has been enjoying its time in the sun due to increased growth over the past few years. Thanks to many strong government incentives and reducing manufacturing costs, accessibility to solar power have grown exponentially. This accessibility has led to the rise of personal solar power use and not just for enthusiastic off-the-grid lifestyles either. Many people are taking advantage of these government subsidies to power their entire residential homes using only the sun’s energy.
Growing market has led to a burgeoning investment interest from Indian and international developers in the sector. The extremely competitive nature of solar auctions has also put off some international developers, who typically like to tie-up their equipment and EPC costs at the time of submitting bids. In contrast, the Indian developers are less risk averse and keep their procurement options open for as long as possible in order to benefit from falling prices and are therefore more aggressive with their bids. Overall, the international developers have a low-risk, low-return philosophy whereas their Indian counterparts usually have an opposite approach.