Solar Energy

A cost effective comparison with

conventional energy sources
 Acknowledgment
I would like to express my special gratitude to my tea
cher, Mrs. Siji Sabu, who gave me the golden opportu
nity to do this wonderful project on the topic:-
''Solar Energy: A cost effective comparison with conv
entional energy sources''
Which helped me in doing a lot of research and gaini
ng new knowledge. I am really thankful.

Aadarsh P. Nair
 Index
Sl. No. Particulars Page No.
1 Solar Energy : What is it and how is it used 3
2 Harnessing Solar Energy for Use 6
3 Photovoltaic Solar Energy 8
4 Solar Thermal Energy 11
5 Other Applications 13
Conventional Energy
6 Environmental Problems 17
7 Comparison of Conventional and Non- 18
Conventional Energy
8 Is Solar Energy cost effective as other 20
conventional energy sources?
9 Advantages of Solar Energy 22
10 Disadvantages of Solar Energy 23
Sl. No. Particulars Page No.
11 Benefits of Solar Energy 24
Solar Power Statistics in India
12 Solar Energy in India 26
13 Market Size 27
14 Competitive Landscape 29
15 Solar Energy Growth Statistics 30
16 Solar Energy Production Statistics 32
17 Economic Index of Solar Energy 35
18 Indian States leading in Solar Power 37
19 Recent Developments 38
20 Future of Solar Industry 41
21 Conclusion 42
Solar Energy : What is it and how is it us
ed?
Solar energy, radiation from the Sun is capable of producing heat, c
ausing chemical reactions, or generating electricity. The total amou
nt of solar energy incident on Earth is vastly in excess of the world’s
current and anticipated energy requirements. If suitably harnessed,
this highly diffused source has the potential to satisfy all future ener
gy needs.
Solar Energy Potential
The potential for solar energy is enormous, since about 2
00,000 times the world’s total daily electric-generating ca
pacity is received by Earth every day in the form of solar
energy.
Unfortunately, though solar energy itself is free, the high
cost of its collection, conversion, and storage still limits it
s exploitation in many places.

Harnessing Solar Energy for Use

Solar energy can be harnessed and converted either into
thermal energy (heat) or into electrical energy by using S
olar thermal capture and Photovoltaics.
 Photovoltaic Solar Energy
PV materials and devices convert sunlight into electrical energy. A single PV
device is known as a cell and is usually small, typically producing about 1 or
2 watts of power. These cells are made of different semiconductor material
s and are often less than the thickness of four human hairs. In order to with
stand the outdoors for many years, cells are sandwiched between protectiv
e materials in a combination of glass and/or plastics.

By connecting large numbers of individual cells together, however, as in sol

ar-panel arrays, hundreds or even thousands of kilowatts of electric power
can be generated in a solar electric plant or in a large household array.

PV modules and arrays are just one part of a PV system. Systems also includ
e mounting structures that point panels toward the sun, along with the co
mponents that take the direct-current (DC) electricity produced by modules
and convert it to the alternating-current (AC) electricity used to power all of
the appliances in your home.
 Solar Cell
• When sunlight strikes a solar ce
ll, an electron is freed by the ph
otoelectric effect.
• The two dissimilar semiconduc
tors possess a natural differenc
e in electric potential (voltage),
which causes the electrons to fl
ow through the external circuit,
supplying power to the load.
• The flow of electricity results fr
om the characteristics of the se
miconductors and is powered e
ntirely by light striking the cell
 How does it work?
Incoming sunlight strikes the semiconductormaterial and knocks electrons loo
se, Tiny packets of light energy called photons are captured by electrons, and
impart enough energy to kick the electron free of its host atom, setting them
n motion and generating an electric current that can be captured with wiring
This current is known as Direct current (DC) electricity and must be converted
to Alternating (AC) electricity using a solar inverter. This conversion is necessa
ry
 Solar Thermal Energy
Solar thermal energy (STE) is a form of energy and a technology for harness
ing solar energy to generate thermal energy for use in industry, and in the r
esidential and commercial sectors.
The basic principle of solar thermal heating is to utilize the sun’s energy and
convert it into heat which is then transferred into your home or business he
ating system in the form of hot water and space heating.
The main source of heat generation is through roof mounted solar panels w
hich are used in conjunction with a boiler, collector or immersion heater. Th
e solar collector will use the sun’s rays to heat a transfer fluid which is usual
ly a mixture of water and glycol (antifreeze) which prevents the water from
freezing. The heated water from the collectors is pumped to a heat exchang
er which would be inside the the water tank in your home. The heat from t
he exchanger will then heat the water inside the tank. After the liquid relea
ses its heat, the water will flow back to the collectors for reheating. A contr
oller will ensure that the fluid will circulate to the collector when there is su
fficient heat available.
 Other Applications
• Solar energy is also used on a small scale for purposes other th
an those described above. In some countries, for instance, solar
energy is used to produce salt from seawater by evaporation. Si
milarly, solar-powered desalination units transform salt water i
nto drinking water by converting the Sun’s energy to heat, direc
tly or indirectly, to drive the desalination process.
• Solar technology has also emerged for the clean and renewable
production of hydrogen as an alternative energy source. Mimic
king the process of photosynthesis, artificial leaves are silicon-b
ased devices that use solar energy to split water into hydrogen
and oxygen, leaving virtually no pollutants. Further work is nee
ded to improve the efficiency and cost-effectiveness of these de
vices for industrial use.
Conventional Energy
•The conventional sources of energy are generally non-renewable sources of
energy, which are being used since a long time. These sources of energy are
being used extensively in such a way that their known reserves have been d
epleted to a great extent.

•There are four major types of nonrenewable resources: oil, natural gas, coal
, and nuclear energy. Oil, natural gas, and coal are collectively called fossil f
uels. Fossil fuels were formed within the Earth from dead plants and animal
s over millions of years—hence the name “fossil” fuels. They are found in u
nderground layers of rock and sediment. Pressure and heat worked togethe
r to transform the plant and animal remains into crude oil (also known as p
etroleum), coal, and natural gas.
•Unfortunately, human society is—for the time being—dependent on nonre
newable resources as its primary source of energy. Approximately 80 perce
nt of the total amount of energy used globally each year comes from fossil f
uels. We depend on fossil fuels because they are energy-rich and relatively
cheap to process. But a major problem with fossil fuels, aside from their bei
ng in limited supply, is that burning them releases carbon dioxide into the a
tmosphere. Rising levels of heat-trapping carbon dioxide in the atmosphere
is the main cause of global warming.
In India most of the power generation is carried out by conventional
energy sources, coal and mineral oil-based power plants which
contribute heavily to greenhouse gases emission. Setting up of new
power plants is inevitably dependent on import of highly volatile fossil
fuels. Thus, it is essential to tackle the energy crisis through judicious
utilization of abundant the renewable energy resources
 Environmental Problems
• Conventional energy sources can cause several different types of pollution. Some o
f the most common ones are air pollution, acid rain, and greenhouse gasses. As a r
esult of fossil fuel combustion, chemicals and particulates are released into the at
mosphere. Common examples include carbon monoxide, carbon dioxide, hydrocar
bon, nitrogen oxide, and sulfer dioxide.
• Carbon monoxide (CO) is a product of incomplete combustion and occurs when car
bon in the fuel is partially oxidized rather than fully oxidized to carbon dioxide.
• Carbon dioxide (CO2) is a “greenhouse gas” that traps the Earth’s heat and contrib
utes to the potential for global warming.
• Hydrocarbon emissions result when fuel molecules in the engine do not burn or bu
rn only partially. Hydrocarbons react in the presence of nitrogen oxides and sunligh
t to form ground-level ozone, a major component of smog.
• Nitrogen oxide (NOx), when under the high-pressure and temperature conditions i
n an engine, nitrogen and oxygen atoms in the air react to form various nitrogen ox
ides, collectively known as NOx. Nitrogen oxides, like hydrocarbons, are precursors
to the formation of ozone. They also contribute to the formation of acid rain.
• Sulfur dioxide (SO2) contributes to acid rain.
Comparison of Conventional and Non-Conventional energy
sources
Is Solar Energy cost effective as other Conventional En
ergy Sources?
Doesn't accessing power straight from the source make more sense than pa
ying for it indirectly from you local powerplant.Clearly Solar Energy is more
cost-effective than 'regular' or 'standard electricity'. According to World Eco
nomic Forum (WEF), installing new Solar panels is cheaper than a compara
ble investment in coal, natural gas or other fossil fuel options. Another way
to think about it is that the sun is always available. It takes a lot of work to
produce electricity, but when you set up your very own private powerplant
on the roof of your house, that is the definition of efficiency.
 Advantages of Solar Energy
• Solar power is pollution-free and causes no greenhouse gases to be emitted after installation
• Reduced dependence on foreign oil and fossil fuels
• Renewable clean power that is available every day of the year, even cloudy days produce som
e power
• Return on investment unlike paying for utility bills
• Virtually no maintenance as solar panels last over 30 years
• Excess power can be sold back to the power company if the grid inner tied
• Ability to live grid free if all power generated provides enough for the home/building
• Can be installed virtually anywhere; in a field to on a building
• Use batteries to store extra power for use at night
• Solar can be used to heat water, power homes and buildings, even power cars
• Safer than traditional electric current
• Efficiency is always improving so the same size solar that is available today will become more
efficient tomorrow
• Aesthetics are improving making the solar more versatile compared to older models; i.e. prin
ting, flexible, solar shingles, etc.
• Federal grants, tax incentives, and rebate programs are available to help with initial costs
 Disadvantages of Solar Energy
• High initial costs for material and installation and long ROI
• Weather dependent
• Needs lots of space as efficiency is not 100% yet
• No solar power at night so there is a need for a large battery bank
• Some people think they are ugly
• Devices that run on DC power directly are more expensive
• Depending on geographical location the size of the solar panels vary fo
r the same power generation
• Cloudy days do not produce as much energy
• Solar panels are not being massed produced due to a lack of material
and technology to lower the cost enough to be more affordable
• Lower solar production in the winter months
 Benefits of Solar Energy
Solar energy grants both short and long term benefits to the consumers
Short-Term Benefits of Solar Power
One of the greatest and most immediate benefits to using solar power is no
t having to worry about running out. Solar energy is renewable, so every da
y with at least moderate sunlight your solar energy system is storing energy
for future use.It also means reducing your carbon footprint that much mor
e since you’re not regularly burning fossil fuel for heat.

Long-Term Benefits of Solar Power

If your solar energy system can provide more energy than what you need t
o power your own home, you could actually receive a check rather than a b
ill from your local utility company drawing the excess energy from your sola
r panels. When a utility company negotiates with you to pay you for the ext
ra energy you’re producing, it’s called net metering. Over time, this could a
dd up to be a significant amount of money and would allow your solar pow
er system to pay for itself eventually.
Solar Power Statistics in India
 Solar Energy in India
Indian renewable energy sector is the fourth most attractive renewab
le energy market in the world. India was ranked fourth in wind power,
fifth in solar power and fourth in renewable power installed capacity,
as of 2020.
Over the past decade, a lot of things has changed in the Indian solar
market. After a significant policy reshuffling by current government a
nd increasing adaptationof Solar energy throughout the country has
proved to be the right move towards achieving renewable energy sol
utions.
With the increased support of Government and improved economics,
the sector has become attractive from investors perspective.
The government is aiming to achieve 227 GW of renewable energy ca
pacity (including 114 GW of solar capacity addition and 67 GW of win
d power capacity) by 2022, more than its 175 GW target as per the Pa
ris Agreement.
 Market Size
• As of July 2021, India had 96.96 GW of renewable energy capacity, and repr
esents 25.2% of the overall installed power capacity, providing a great oppor
tunity for the expansion of green data centres.
• The country is targeting about 450 Gigawatt (GW) of installed renewable en
ergy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
• Installed renewable power-generation capacity has increased at a fast pace
over the past few years, posting a CAGR of 15.51% between FY16 and FY21.
India had 94.4 GW of renewable energy capacity in FY21.
• In July 2021, installed capacity of hydro projects in India reached to 46.3 GW
, while capacity of small hydro plants reached to 4.8 GW.
• By December 2019, 15,100 megawatts (MW) of wind power projects were is
sued, of which, projects of 12,162.50 MW capacity have already been award
ed2. Power generation from renewable energy sources in India reached 127.
01 billion units (BU) in FY20.
• With a potential capacity of 363 GW and with policies focused on the renew
able energy sector, Northern India is expected to become the hub for renew
able energy in India.
 Competitive Landscape

The Solar energy market in India is fra

gmented.
Some of the major companies operati
ng in the market include
•Adani Group
•EMMVEE SOLAR
•Azure Power Global Limited,
•JinkoSolar Holdings Co. Ltd
•First Solar Inc.
 Solar Energy Growth Statistics
India continues to add renewable energy capacity to its overall energy m
ix.
According to the Ministry of New and Renewable Energy (MNRE), India,
as of March 2021, had a total installed capacity of more than 40 GW of s
olar energy. Moreover, India is endowed with a very vast solar energy po
tential. The average solar radiation incident over the land is in the range
of 4-7 kWh per day.
Solar power played an almost non-existent role in the Indian energy mix
until 2007.
With the government promoting solar installations in the rural areas by
providing subsidized solar panels and another incentive, the solar PV ins
tallation is expected to increase during the forecast period and drive the
market.
Solar Energy Production Statist
ics
• As of July 2021, India had 96.96 GW of renewable energy ca
pacity, and represents 25.2% of the overall installed power c
apacity, providing a great opportunity for the expansion of g
reen data centres.
• The country is targeting about 450 Gigawatt (GW) of installe
d renewable energy capacity by 2030 – about 280 GW (over
60%) is expected from solar.
 Economic Index of Solar Energy
• Renewable energy has secured a prominent place in the Indian energy
space to its low-cost power generation capacity.
• India's new status as the cheapest solar energy producer has further cr
eated a shift towards complete reliance on renewable energy.
• Cost for setting up Solar PV projects in India dropped by nearly 80% be
tween 2010 and 2018.
• The initiatives taken by the government of India as early as 2010, foste
red consistent growth in the solar energy segment.
• The encouraging surge in the energy sector had further helped the sol
ar industry to get the cost advantage through the economies of scale i
n a short period.
• Despite Covid-19, for the period starting January 2020 till Sep 2020, ab
out 2320 MW of solar capacity comprising 1437 MW of Ground Mount
ed Solar and 883 MW of Rooftop Solar was added in India
 Indian States leading in Solar
Power
1) Rajasthan —7737 MW
2) Karnataka — 7469 MW
3) Gujarat — 5708 MW
4) Tamil Nadu — 4675 MW
5) Andhra Pradesh — 4380 MW
6) Telangana — 3992 MW
7) Maharashtra — 2444 MW
 Recent Developments
• With the recent surge (2nd Wave) in COVID-19 cases in April 2021, India is
expected to delay nearly 4 GW of solar PV projects with the planned com
mission in 2021 and these are expected to get commissioned in 2022.Mor
eover, there will again be a delay in the project commissioning schedule f
or utility-scale solar projects because of lack of labor and delay in equipm
ent supply due to lockdown in different states. Even the rooftop market is
likely to face payment issues for OPEX projects with the uncertainty loomi
ng over full or partial closure of manufacturing and business units which
might also add to liquidity crunch woes.​

• In March 2021, Delhi-based SolarArise India Projects Pvt Ltd has commissi
oned a 75-MW solar park in the Indian state of Uttar Pradesh. The photov
oltaic (PV) facility is operated by SolarArise through Talettutayi Solar Proje
cts Two Pvt Ltd and is capable of generating 120 million kWh per year.
• In April 2021, Indian renewables developer Adani Green Energy Ltd commi
ssioned a 50-MW solar farm in Chitrakoot, in India’s Uttar Pradesh state. Th
e solar farm will operate under a 25-year power purchase agreement (PPA)
with the Uttar Pradesh Power Corporation Limited (UPPCL) for INR 3.07 (US
D 0.041/EUR 0.0343) per kWh.

• In June 2021, Norwegian renewable power producer Scatec ASA announce

d its first project in India i.e., a 900-MW solar partnership with local develo
per ACME Group. The construction of the facility is seen to begin in 2021 a
nd completion is scheduled for 2022. Once up and running, the plant is exp
ected to generate 1,600 GWh a year and will be selling the output to Solar
Energy Corporation of India (SECI) under a 25-year power purchase agreem
ent (PPA) won in a 2018 tender.
 Future of Solar Industry
Solar can be considered the way of the future due to its versatility. This mea
ns that wherever people choose to live their lives, solar energy will always b
e there to help. For example, for those who are living in a place with no for
m of electricity, such as in rural communities, using solar panels can bring re
newable energy to them without hassle.

The Future of Solar Energy considers only the two widely recognized classes
of technologies for converting solar energy into electricity — photovoltaics
(PV) and concentrated solar power (CSP), sometimes called solar thermal)
— in their current and plausible future forms. Because energy supply faciliti
es typically last several decades, technologies in these classes will dominate
solar-powered generation between now and 2050, and we do not attempt t
o look beyond that date.
 Conclusion
You’ve just learned the important benefits of installing solar energy. A hom
e solar energy can help homeowners save more money with lower utility bi
lls and incentives. Solar energy is a worthwhile investment not only for ho
meowners but also for investors and businesses. Like construction compani
es, businesses can use solar energy to power up tools and machinery to red
uce operating costs.

Using solar energy helps save the environment by reducing gas emissions a
nd reducing carbon footprint. Also, it promotes better health because of fe
wer air contaminants produced. It can be a versatile source of energy wher
ever you are in the world and Indeed, solar has a bright future with plenty
of promising benefits to humanity.