Solar Mission

Solar Mission with ambitious target of 1300 Mw by next 12 months has surprisingly made the so called high capital cost Solar Power Technology a chief contender for the investment flowing in the Renewable Energy Sector specifically poising as serious threat to Wind Power Project with just around double digit returns.

Of course there are difference more than just the numbers i.e. one can not compare solar power projects returns and wind power project returns.

The technology has yet to be developed and proved its versatility in the India Market. Probably no body has yet experienced the kind of BOS (Balance of System) work which would be expected out of solar projects be it Solar Photovoltaic projects or Solar Thermal Projects.

But Ministry of New and Renewable Energy must deserve accolades for creating such huge interest (rather the interest seems to have been more than just required ==> creating threat of bubble burst). Specifically the introduction of NVVNL is master stroke which has just reduced the power of SERC and paved the way for MW scale investment. Arguably the introduction of NVVNL that too without any risk on the shoulder of NVVNL is something would really go a long way in creating the solar infrastructure of India.
However the condition precedent of having Power Sales Agremeent (PSA) before singing of Power Purchase Agreement (PPA) is going to be crucial thing and something which needs to be resolved/clarified at the earliest.

best luck to solar mission