Monthly Archives: January 2024

How Vertical Solar Panels (Agrivoltaics) Can Boost India’s Agriculture and Energy Sector

How Vertical Solar Panels Agrivoltaics Can Boost Indias Agriculture and Energy Sector

India is a country with a huge potential for agrivoltaics, the innovative practice of combining solar energy and agriculture on the same land. Agrivoltaics can help India overcome the dual challenges of meeting its soaring energy needs and supporting its vital farming sector. India has the third highest energy consumption in the world, with a population of over 1.3 billion people. Yet, its per capita energy use is still much lower than the global average, due to its level of development. India relies heavily on fossil fuels, which cause severe air pollution in urban areas. To achieve its climate targets and ensure universal access to electricity, India is committed to increasing its renewable energy sources. Agrivoltaics can offer a sustainable and efficient solution for India’s energy and food security.

On the agricultural front, India supports about 600 million farmers and farm workers. But farm incomes remain low due to small landholding sizes, low productivity, and an overreliance on monsoons for irrigation. Climate change is projected to adversely impact crop yields in the future. With scarce arable land and a growing population, India needs to boost crop productivity without expanding its agricultural footprint. There is tremendous urgency for India to innovate and find solutions that address its energy and food security challenges.

What is Agrivoltaics?

Agrivoltaics, also known as agri-PV, refers to the co-location of agriculture and solar photovoltaic (PV) systems on the same land. It involves growing crops underneath raised solar panels that are mounted high enough off the ground to allow sunlight to reach the plants below. 

Agrivoltaics provides numerous benefits, including:

– Making efficient use of land by allowing it to be used for both solar power generation and food production. This is especially useful in areas where land availability is limited.

– Increasing overall productivity of the land. The crops benefit from partial shade, which reduces water evaporation from the soil and plant transpiration. This allows certain crops to grow better.

– Providing additional income to farmers through lease fees for the land use by solar developers. The extra income provides financial stability.

– Reducing soil erosion and pest pressure on crops by providing ground cover and limiting weed growth under the panels.

– Providing shelter from rain and hail damage for delicate crops like berries and grapes by elevating the panels sufficiently.

– Improving power output of solar panels which stay cooler due to reduced ambient temperatures under the panels. This increases efficiency.

– Allowing grazing of sheep and cattle to control weeds and reduce grass cutting costs under raised panels.

So in summary, agrivoltaics enables more productive use of agricultural land by simultaneously producing crops and generating solar energy on the same footprint of land.

Vertical Solar Panels

Vertical solar panels, as the name suggests, are solar panels installed vertically rather than at an angle or horizontally on rooftops. They have emerged as an important technology for agrivoltaics or co-locating solar power generation and agriculture. 

Vertical solar panels have the following advantages compared to conventional horizontal photovoltaic panels:

– Higher energy yield: Vertical panels can capture sunlight from sunrise to sunset, generating more energy per square meter than horizontal panels. They work effectively even when the sun is low on the horizon. 

– Dual face functionality: Vertical bifacial panels absorb sunlight from both the front and back side. The albedo or reflection from the ground further increases energy generation.

– Better airflow and cooling: The vertical orientation allows hot air to rise and dissipate easily, keeping the panels cooler. This improves their efficiency and lifespan.

– Less soiling: Dust accumulation is lower on vertical panels due to improved airflow and self-cleaning from rainfall. This maintains optimal performance.

– Space efficiency: Vertical solar panels require a smaller footprint and can be installed in tight spaces between crops. Their slender design provides ample spacing and sunlight for agriculture.

– Shade for crops: The panels can provide useful shade from intense midday sun and heat for crops growing underneath. This can improve yields.

The vertical alignment, dual-side light absorption, and reduced soiling make vertical solar panels ideal for high-density solar power generation with the added benefit of enabling continued farming. Their advantages make them a perfect fit for the agrivoltaics model.

Pioneers of Agrivoltaics

Next2Sun is a German startup that is pioneering vertical solar panels for agrivoltaics. This company has developed a special bifacial solar module that is installed vertically and collects sunlight from both sides. This innovative design allows the panels to produce peak power in the morning and evening, unlike horizontal panels that peak at midday. 

Agrivoltaics
Next2Sun

The vertical alignment also leaves enough space and light for crops to grow underneath or between the panels. Next2Sun has successfully implemented several agrivoltaics projects in Germany, where it has combined its vertical solar panels with crops like potatoes and hay. 

Next2Sun is now planning to install its first agrivoltaics project in the United States, in Vermont. This will be done in collaboration with a local farmer to demonstrate the technology’s feasibility and benefits in the US agricultural context. The German startup aims to showcase agrivoltaics as an innovative solution that allows farmers to simultaneously generate solar power and grow crops on the same land.

Agrivoltaics in India

India has also shown interest in agrivoltaics, as it has the potential to address its land and energy challenges. There are already some examples of vertical solar panels and agrivoltaics in India:

– Tata Power Solar and Dell India have built India’s largest vertical solar farm of 120 kW on Dell’s Bengaluru campus. The 45-meter-long structure provides the dual benefit of producing green energy and insulating the building, thus reducing power consumption.

– U-Solar Clean Energy Solutions Pvt. Ltd. has installed India’s largest building integrated vertical solar system of 1 MW on a data center in Mumbai. The system covers the entire facade of the building and generates enough power to meet 25% of its energy demand. 

– Gro Solar Energy has installed a 7 MW solar project in Maharashtra, where it has integrated solar panels with drip irrigation for crops like sugarcane and banana. The project has increased the crop yield by 15% and reduced the water consumption by 40%.

Soleos Solar Energy Pvt. Ltd. is a global EPC company in the solar energy field, known for its innovation and technology. It has a team of experts who deliver high-quality and sustainable solar power plants across various sectors and locations, including Asia’s largest solar carport at Honda Limited in Tapukara, Rajasthan.

Challenges for Agrivoltaics in India

India faces some key challenges that need to be addressed for agrivoltaics to reach its full potential.

Lack of Awareness

There is limited understanding among farmers and policymakers about the concept and benefits of combining solar power and agriculture. Many are unaware that solar panels can be installed vertically and farming can continue underneath. Raising awareness through educational programs, demonstrations, and field visits will be crucial.

Policy Support 

Currently there are no policies or incentives focused specifically on promoting agrivoltaics. The government will need to provide subsidies, tax credits, and feed-in tariffs to encourage investment by farmers and developers. New standards and guidelines for agrivoltaic system design and installation also need to be established.

Financing 

The high upfront costs of installing solar panels and making structural changes for vertical orientation is a major barrier, especially for smallholder farmers. Making financing more accessible through government funding, loans, and public-private partnerships will help drive adoption. Access to insurance against risks like crop damage is also currently limited.

Overcoming Challenges

To enable the widespread adoption of agrivoltaics in India, the country needs to take steps to overcome existing barriers and create an environment conducive to innovation in this area. Some ways to achieve this include:

Providing Incentives

The government can offer incentives like feed-in tariffs, tax credits, and low-interest loans to encourage farmers and project developers to invest in agrivoltaic systems. This will help offset the relatively high upfront costs and make agrivoltaics more financially viable.

Developing Standards 

Relevant agencies and industry bodies can formulate design, installation and operational standards and guidelines for agrivoltaic projects. This will ensure such systems are engineered optimally for factors like panel orientation, crop selection, maintenance etc.

Investing in R&D

Investment is required in research and development to improve efficiency, durability and crop compatibility of agrivoltaic technologies. This includes innovations like transparent/colored solar panels, optimized panel-to-crop ratios, smart sensors etc.

Creating Awareness

It is important to educate farmers and consumers about the benefits and opportunities of agrivoltaics through workshops, exhibitions, field visits etc. This will drive adoption by raising awareness and social acceptance.

Benefits for India

India stands to gain tremendously by adopting vertical solar panels and agrivoltaics. Here are some of the key benefits:

Renewable Energy

– Agrivoltaics can help India meet its ambitious target of installing 175 GW of renewable energy by 2022. 

– Solar energy generation and agricultural production happen on the same land, optimizing land usage.

– Solar energy can be fed directly into rural grids, providing clean electricity access in remote areas.

Food Security 

– Carefuldesign ensures solar panels do not hinder crop growth. In fact, studies show agrivoltaics can increase yields in hotter climates by providing shade and reducing evaporation.

– More predictable energy access allows farmers to invest in equipment like pumps and cold storage that reduce crop losses.

– Diversified farmer income from solar leasing fees improves economic resilience.

Jobs

– Construction and maintenance of utility-scale agrivoltaic projects creates green jobs, especially in rural areas.

– New skill development opportunities arise in areas like solar technician work tailored to agriculture.

– Increased and diversified agricultural production supports overall growth of agri-business employment.

India’s Potential

India has tremendous potential to become a global leader in agrivoltaics and set an example for other countries to follow. With its abundant sunlight, large agricultural sector, and pressing energy needs, India is an ideal place to scale up vertical solar panels and agrivoltaic systems. 

By adopting agrivoltaics on a national scale, India could:

– Meet its ambitious renewable energy goals of 175 GW by 2022, and potentially even exceed them.

– Optimize its land usage by maximizing both agricultural production and clean energy generation per acre. 

– Enhance incomes and create new green jobs for farmers through the additional revenue from solar power.

– Increase its energy, water, and food security by boosting crop yields, reducing water usage, and generating solar power locally.

– Mitigate climate change by displacing fossil fuels, enhancing carbon sequestration, and promoting climate resilience.  

– Catalyze innovation in solar technology suited for the Indian context, creating valuable intellectual property and exports.

– Serve as a model of sustainable development for other tropical countries with scarce land and high solar insolation.

With the right policies, investments, and political will, India can transition millions of acres into highly productive agrivoltaic systems. This can cement India’s position as a trailblazer in sustainable agriculture and renewable energy integration. Becoming a frontrunner in agrivoltaics can also align with India’s broader goals of Atmanirbhar Bharat, doubling farmer incomes, and meeting its Paris Agreement commitments.

 Conclusion 

Veritcal solar panels and agrivoltaics offer immense potential for India. By combining solar energy generation and agriculture, this innovative technology can help India achieve its renewable energy targets, enhance food security, save scarce land resources, and increase farmer incomes. 

The examples of successful agrivoltaics projects in India demonstrate that this technology can be implemented despite initial barriers like high costs and lack of expertise. With the right incentives and enabling policies from the government, agrivoltaics can be scaled across India.

Research institutions will play a key role in optimizing agrivoltaic systems for the Indian context. They need to develop customized solutions considering factors like crops, climate, soil, etc. Transferring technical know-how to farmers through training and demonstrations will drive adoption.

India is well placed to lead the global agrivoltaics revolution. The sunny climate and massive demand for both energy and food make it an ideal testbed. India can set an example for other developing countries with similar socio-economic conditions. 

To fully realize the potential of agrivoltaics, all stakeholders – government, industry, farmers, and consumers – need to come together. The time for siloed thinking is over. Collaborative action will turn this disruptive innovation into mainstream reality.

Contact us today at +91-8320095024 or visit www.soleosenergy.com to learn more about how to choose the best solar business model for your company! Feel free to reach out with any questions or to start your solar journey!

solarize bharat solar panel

Be part of this solar transformation. Pledge your commitment today to Solarize Bharat through Soleos Solar Energy Pvt. Ltd.. Let’s power our nation sustainably and equitably through homegrown, future-oriented solutions. The future is bright and solar!

Stay solar-powered and environmentally inspired!

P.S.: Share this blog with fellow solar enthusiasts to spread the word about the exciting world of solar energy!

How to Choose the Best Solar Business Model for Your Company

Solar Business Model

India’s Ambitious Solar Energy Goals

The solar business model is crucial for determining how solar power plants function in India’s quest for a solar-powered future. This model specifies how income is earned, either by selling the energy generated or by using the electricity produced on-site and saving money. The solar business model affects many aspects, such as who owns the project, how much investment is needed, how operations and maintenance are handled, and what returns the stakeholders can expect.

As India makes significant strides towards its clean energy targets, currently boasting an impressive 72.31 GW of installed solar energy capacity as of November 2023, the journey is far from over. This is an impressive stride towards the initial target of 100 GW of solar capacity. Though the 100 GW mark has not yet been attained, India is not settling.

The country has set its sights even higher, aiming for a whopping 500 GW of renewable energy capacity by 2030. This includes all forms of renewable energy – solar, wind and more. As R.K. Singh, the Union Minister for Power and New & Renewable Energy succinctly put it: “We’ll hit that 500 GW well before 2030.

This bold target reflects not only a numerical success but also India’s leadership in the global shift towards clean energy.

For businesses in India, the solar business model paves the way for financial incentives and opportunities, aligning seamlessly with the nation’s dedication to a sustainable and brighter future for all.

There are two main types of solar business models in India: the CAPEX model and the RESCO model. Each of these models has its own advantages and disadvantages, depending on the specific needs and preferences of the business owner.

CAPEX Model Explained

The CAPEX model involves the business taking full ownership and responsibility for the solar power system. This means the business purchases the solar panels, inverters, and other equipment upfront to install on their property. 

CAPEX Solar Business Model

The main elements of the CAPEX model include:

– High Upfront Investment: The business must pay the full capital expenditure (CAPEX) costs to purchase and install the solar system. This requires significant funds upfront but provides complete ownership.

– Long Term Savings: By owning the solar system, the business enjoys lowered electricity bills for decades. Once the upfront investment is recouped, the “free” energy from the sun provides excellent long-term savings.

– Full Control: The business has complete control over the solar system, panels, and maintenance. There is no third-party involvement.

– Tax Breaks: Government incentives like accelerated depreciation and tax credits provide financial benefits that improve ROI on the solar investment.

Overall, the CAPEX model is ideal for businesses focused on long-term savings, full control, and leveraging tax incentives. The major barrier is the large upfront investment required. But for some, owning their own power plant is worth it for decades of nearly free solar energy from the sun.

 Pros of CAPEX Model

Ownership of your own solar power system through the CAPEX model provides some key advantages:

– Long-term Savings: By owning your own solar system, you can lock in low electricity rates for decades to come, insulating your business from ever-escalating grid tariffs and securing decades of free sunshine-fueled electricity. This gives you price stability and reduces your operating costs over the long run.

Tax Breaks & Incentives: The government offers incentives like accelerated depreciation and tax credits to make solar power investments more lucrative. These can significantly boost your return on investment.

– Property Value Boost: Properties with solar power systems installed have higher valuation and fetch higher rents or sale prices. Going solar can directly increase the value of your business property.

– Control over the System: As the owner, you have full control over the solar power system installed on your property. You control all operations and maintenance and are not bound to any external party.

 Cons of CAPEX Model

The CAPEX model requires a substantial upfront investment to purchase and install the solar power system. This can put a major dent in your capital expenditure budget. You’ll need to self-finance or take out a loan to cover these initial costs.  

As the owner of the solar power system, you are also responsible for all maintenance and repairs. This includes regular cleaning of the panels, inverter checks, and any fixes needed over the 20-30 year lifespan of the system. Proper maintenance is essential to keep your system performing optimally.

There are performance risks associated with owning your own system. Factors like shading, soiling, inverter failure etc. can impact energy generation. You’ll have to shoulder these production and revenue losses when issues arise.

As solar technology improves over time, your system may become outdated earlier than expected. Upgrading to newer, higher efficiency panels down the line will add to your CAPEX costs.

So while the CAPEX model provides long-term savings and control, the burden of upfront expenses, maintenance, and upgrade costs rests squarely on your shoulders.

 OPEX/PPA/RESCO Model Explained

The OPEX/PPA/RESCO model allows businesses to benefit from solar power without the major upfront investment required of the CAPEX model.

OPEX Solar Business Model

In this model, a third party such as a solar energy provider or RESCO (renewable energy service company) will finance, install, operate and maintain the solar power system on your property. As the business owner, you simply pay for the electricity generated by the solar panels based on a predetermined rate and term length outlined in a power purchase agreement (PPA).

Some key aspects of the OPEX/PPA/RESCO model:

– Third party ownership – The solar system is owned and operated by the service provider, not your business. This eliminates the need for any major upfront investment.

– Power Purchase Agreement (PPA) – A long-term contract to purchase the electricity generated by the solar power system, usually 10-15 years. The rate is lower than your utility but may be slightly higher than the CAPEX model.

– Operation, maintenance and performance – All responsibilities for operating, maintaining and ensuring optimal performance of the solar system lies with the service provider.

– Scalability – Businesses can easily scale solar capacity up or down through their PPA.

The OPEX model offers an accessible path to solar energy for businesses unwilling or unable to make major upfront investments. While you don’t own the system, it provides cost savings with minimal hassle.

 Pros of OPEX/PPA/RESCO Model

The OPEX/PPA/RESCO model offers several key advantages that make it an attractive option for many businesses looking to adopt solar power:

 No Upfront Costs

One of the biggest pros of the OPEX model is that there are zero upfront costs for the business owner. The RESCO handles the entire initial investment for purchasing and installing the solar panels and equipment. This allows businesses to avoid the huge capital expenditure required to buy their own solar power system. The business simply pays for the electricity generated by the system on a per unit basis. This predictable electricity bill each month is the only cost.

 Low Maintenance 

With an OPEX contract, the RESCO is responsible for all maintenance and repairs related to the solar power system. So the panels, inverters, wiring etc. are all looked after by the RESCO. The business owner does not have to worry about system upkeep or finding technicians to service the equipment as needed. This makes it a hassle-free arrangement.

 Easy to Scale Over Time

A major advantage of the OPEX model is the flexibility it offers in system sizing. If the business grows and energy needs increase, it’s easy to adjust the PPA and add more solar panels to scale up power generation. There’s no need for the business to make additional capital investments to expand the system. The RESCO handles upgrading the equipment as required. This scalability makes it easy to right-size the solar system for current energy needs.

 Cons of OPEX/PPA/RESCO Model

The OPEX/PPA/RESCO model isn’t without its downsides. Here are some potential cons to consider:

– Less control over the system: Since you don’t own the solar power system, you have less control over it. You can’t make changes or upgrades without approval from the RESCO.

– Potentially higher electricity costs: While you avoid the upfront investment, the electricity rates per unit could end up costing more over the long run compared to owning your own system. The RESCO needs to recover their initial investment and make a profit.

– Locked into a long term contract: OPEX/PPA/RESCO contracts typically range from 10-15 years – that’s a long-term commitment with little flexibility to change providers. It’s like signing up for a marriage to sunshine where divorce is not an option. Make sure you’re comfortable being tied to one RESCO for decades.

 Choosing the Right Solar Business Model

When selecting a solar business model, it’s important to reflect on your budget constraints, risk tolerance, and long-term goals. 

The CAPEX model may be the best fit if you want more control over your energy source along with tax deductions and incentives. Since you own the system under CAPEX, you benefit directly from government solar subsidies and accelerated depreciation. This allows you to maximize savings over the lifespan of the panels. Just keep in mind that the upfront costs will be higher and you take on more maintenance responsibility.

For businesses that want to avoid high initial investments, the OPEX model is very appealing. The third party finance provider shoulders the upfront panel and installation costs, so you can start benefiting from solar right away. However, electricity rates are slightly higher than the CAPEX model over the long run. And maintenance becomes the responsibility of the RESCO, not you.

Ultimately, choosing between CAPEX and OPEX depends on your budget, tolerance for risk, and goals for long-term savings or low initial outlay. Analyze your specific business needs to determine if the benefits of control and tax incentives outweigh the convenience and low startup costs. With the right solar model powering your company, you’ll be well on your way to joining India’s renewable energy revolution!

 Investing in a Sustainable Future

With India’s ambitious solar energy goals, businesses have an incredible opportunity to invest in a more sustainable future. Going solar doesn’t just make economic sense; it benefits the environment and allows companies to demonstrate social responsibility.

Solar energy generates power without any air or water pollution, reducing dependence on fossil fuels. Widespread adoption of solar can significantly lower India’s carbon emissions and improve air quality. Businesses that install solar panels lead by example and show that profitability and sustainability can go hand in hand.

India is also demonstrating global leadership in clean energy through its massive push for solar power capacity. The country’s commitment to adding 500 GW of renewable energy by 2030 sets an example for nations worldwide. When Indian companies adopt solar, they become part of this clean energy success story.

By choosing solar, businesses can power their operations sustainably for decades to come. The sun provides an endless, clean energy source. Investing in solar technology allows companies to reduce their environmental impact and become stewards of a greener future.

Going solar makes sense financially and ethically. With two attractive models to choose from, every forward-thinking business can find a way to profit from the power of the sun while advancing India’s renewable energy revolution. Leading this sustainability drive will enable the country to shine bright as a beacon of climate action and progressive vision.

Contact us today at +91-8320095024 or visit www.soleosenergy.com to learn more about how to choose the best solar business model for your company! Feel free to reach out with any questions or to start your solar journey!

solarize bharat solar panel

Take the next step in renewable energy by joining the Solarize Bharat pledge. Imagine your business not just as an entity benefiting from solar power but as a contributor to a nationwide movement, shaping the future of energy in our incredible nation.

Stay solar-powered and environmentally inspired!

P.S.: Share this blog with fellow solar enthusiasts to spread the word about the exciting world of solar energy!