Will Indian consumers have to pay the same rates for electricity generated using solar modules and that generated using fossil fuels, by the year 2017? It sure seems that way, if a recent speech given by Tarun Kapoor, Joint Secretary of the Ministry of Renewable Energy is taken into account.

According to Mr Kapoor, the prices of solar PV modules, panels, and associated equipment are bound to go down drastically in 2012, and are likely to keep plummeting from then on. Earlier, one of the primary objectives of the National Solar Mission was to achieve grid-parity by the year 2022. If the present trend persists, then that deadline may be brought forward by 5 years, achieving the target for grid-parity by 2017 itself! Also, quite a few major investors have come forward to finance large scale solar energy projects. If this trend continues, then pretty soon, projects of capacities as high as 2,000 MW may be set up across the nation. This will not only allow citizens to have access to electricity for cheap, it will also improve the carbon rating of the entire country to a great extent.

Mr Kapoor also pointed out that prices of solar energy equipment have come down in international market. Coupled with rapid advancement in technology, this trend would greatly contribute towards flourishing of solar industry in India, in the coming years.

The situation in India is highly favorable for photovoltaic solar module manufacturers. As the interest in their products keep spiking, these companies are likely to get soaring profit margins and attract the attention of plenty of new (and prospective) consumers as well. Now, all these manufacturers need to do is to keep the quality of their products as high as they possibly can, and keep prices within acceptable levels. The future of solar industry in India is definitely bright, and these companies are most likely to benefit from the same.