Your Questions About Solar Energy International

John asks…

What are the incentives offered in India for alternate energy.?

Specially for wind and solar energy, on importing key components.

admin answers:

Plenty offered for India, including the Carbon Offset trading scheme. Also a number of initiatives from the world bank for India and Asia as a whole (reference below)

Some stuff on wind and solar also included in second link go right near the bottom, specifically

Guaranteed Prices. Tamil Nadu and several other State electric boards have agreed to purchase wind power at about 6.4 cents per kilowatthour.(36)

Tax Benefits. These include:

* Five-year tax holidays on income from sales of electricity
* Accelerated depreciation of 100 percent on investment in capital equipment in the first year
* Excise duty and sales tax exemptions for wind turbines
* Import duties on a variety of components waived
* Moving toward a production tax incentive to encourage performance.

Project Financing. India Renewable Energy Development Agency (IREDA) was formed in 1987 to provide assistance in obtaining loans from the World Bank, the Asian Development Bank, and the Danish International Development Agency (DANIDA). This included acting as a conduit for World Bank Loans totaling $78 million specifically for wind.

David asks…

why the indian government is sooo lazy in setting up solar power plants in india when we have scorching sun?

almost throughout the year except in winter and monsoon. while germany and other countries which are relatively very cold climatic use solar energy to a great extent as compared to india….

admin answers:

It’s a fair question… There are a number of reasons…

1. Political Pressures.
In politics, governments don’t have a lot of time to produce results; they are judged very quickly for failures and inactivity. The fact is, the Indian government are poor, and they have many, many demands on the budget. Thus, long term items like solar energy get pushed down the list while other more pressing issued are dealt with. As a group, the Indian people are demanding activity on a number of other issues, so one cannot blame the Indian government for concentrating on these at the expense of others for which there is not a large constitutency.

1. Budget Pressures.
Hand in hand with point # 1, solar energy is extremely expensive to produce, and the total wattage produced per unit of cost is low compared to conventional fuels. The technology has not progressed to the point where solar energy is a cost effective alternative to conventional fuels; thus, it becomes something only more wealthy nations can afford to do to placate interest groups.

3. Alternatives.
India is one of the nations that have been exempted from the Kyoto Accords on Global Warming. Given their exempted position, there is no international (or domestic) pressure for India to diversify its energy output.

To summarize, given the high cost, low output of energy, political and budgetary reasons for deferring the choice, it’s not surprising that India have decided against widespread involvement with Solar energy.

Hope this helps. Cheers.

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