Solar in India is growing industry. With many states already in the fray for increasing their energy capacities, the possibilities for solar investments seems limitless. Unlike in wind power, in which some states have much higher potential than others, there are many states with equivalent potential in solar. But, as always, even in societies where everyone is equal, some are more equal than others. In solar too, some states are more attractive than others, at lease from the short and medium term investor view point. These are states in which, in addition to good solar radiation potential, proactive government policies and a few other related aspects make them attractive. What are the factors that drive solar energy investments in India? The prime reason for the focus on solar is that it is approaching grid parity. For instance, for the 1-5 MW scale solar projects, the LCOE (Levelized Cost Of Electricity) has is about Rs 5.5/kWh. For powe...
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