Firstly, there has been a global oversupply of solar panels, which has driven down prices. Many solar panel manufacturers around the world have increased their production capacity in recent years, leading to an excess supply of solar panels in the market. This has resulted in a drop in prices, making solar energy more affordable for consumers and businesses in India.
Secondly, the Indian government has implemented policies and incentives to encourage the growth of the solar industry. The government’s goal is to achieve 100 GW of solar power capacity by 2022, which has led to the implementation of policies such as the Jawaharlal Nehru National Solar Mission and the National Solar Energy Federation of India. These policies provide subsidies, tax incentives, and other benefits to companies that invest in the solar industry, which has helped to drive down the cost of solar panels in India.
Another factor contributing to the drop in solar module prices is the increase in competition among solar panel manufacturers. As the demand for solar energy in India continues to grow, more and more companies are entering the market, increasing competition and driving down prices.
Finally, advancements in technology have also played a role in reducing the cost of solar panels. Newer technologies, such as thin-film solar panels and bifacial solar panels, have become more efficient and cost-effective in recent years, making them a more viable option for businesses and homeowners in India.
Overall, the recent drop in solar module prices in India can be attributed to a combination of factors, including oversupply, government policies and incentives, increased competition, and technological advancements. As a result, solar energy is becoming more affordable and accessible for consumers and businesses in India, which is driving the growth of the solar industry in the country.