Can solar power change the future of Industry

2 Mins read

The sun is an inexhaustible source of energy, which is readily available in most regions of the country and has no negative impact on the environment. This makes choosing solar energy a wise decision for industrial and commercial purposes. Also, solar rooftop systems have improved over the years, as equipment costs have decreased while energy output efficiency has increased. Even the solar cells that convert light into electricity are now more affordable.

These factors make increasing adoption of solar energy by manufacturers an obvious choice, as sustainable initiatives such as these, also help in increasing profits. 

Let us take a look at the various factors that portray solar power as the future of industry.

Using Solar Power for Manufacturing

Manufacturing industries understand the importance renewable energy solutions. It reduces the dependence on conventional sources of energy such as fossil fuels. Energy forms one of the crucial costs for any manufacturer. This includes the process of electricity generation, supply, transfer. Bringing in solar energy in this process, can cut down costs on machine operations and fuel consumption. 

Applicable for all industries & climates

Solar energy is a versatile source of energy, as it is accessible by any enterprise. It can prove to be especially beneficial in areas of sporadic electricity, which can bring renewable energy to them without any hassle. Unlike fossil fuels which fluctuate in terms of volume and price, solar energy is a guaranteed energy source with no price factoring in. Also, India is a tropical country, where most regions receive adequate sunlight for the major part of the year. Solar power is dependable even in the winter, in colder climates.

More Savings through Solar Energy

Due to the unpredictable nature of the economy, industries are always looking for way to save on running costs. Using a solar rooftop system can help in saving money in multiple ways through electricity bill reduction, net metering programs and tax benefits. 

Here is how Solar Energy helps in these fields

Reducing electricity costs: Solar energy creates energy from the sun, thus eliminating any production or consumption costs.

Solar Subsidies: The Ministry of New and Renewable Energy offers incentives to MSMEs for 35% of plants and machinery and 10% for implementation of solar units. Also, government will assist up to 25% of project cost.

Net Metering Program: This program allows industries to sell back surplus power generated to distribution companies which can help them offset the EMIs they pay on a Rooftop Solar Loan.

Tax Benefits: To enhance the usage of solar rooftop system, the Indian government is offering accelerated depreciation of fixed assets related to solar power plant. The offered rate of acceleration is at 40%.

This allows commercial and industrial users to depreciate their investment at a much higher rate, than other assets. In return, the user can then claim tax benefits on the depreciated value in a year.

Environment-Friendly Energy Source

Traditional methods of generating electricity aren’t very conducive to the environment. The production process consists of burning coal, oil and gas which releases harmful gases, including excessive carbon dioxide emissions. Even the extraction of fossil fuels creates pollution and accelerates climate change. The extensive use of water in this process also causes environmental issues. Solar energy, on the other hand, is a pure and clean source of renewable energy that has zero emissions, thus reducing carbon footprint and greenhouse gases. 

Therefore, the dual benefit of cost savings and betterment of the environment, attribute solar energy to be the best way forward for the manufacturing sector.

And becoming a part of the future is very simple. There are several banks and NBFCs which offer industrial MSME loans, which also include solar loan. Some of them include Electronica Finance Limited, Saraswat Bank, PNB Bank, SBI, HDFC Bank etc. They can help in the entire procurement and installation process. 

The future is bright and its solar!