Good Day Sunshine

Solar energy is slowly taking off in India, but there are still hurdles to jump



In the first world, solar power is still considered a novelty energy source. Commonly held belief has it that only environmental extremists have solar panels on their homes, a stereotype forged from the conviction that only the most unbridled of idealists would bother with socially responsible energy when its cost and potential hassles so severely outweigh its benefits. And in the context of typical first world energy demands, the reasoning is not so flawed; after all, solar technology is not yet at a stage where it can adequately fulfill the needs of the average first world consumer. Too little energy is generated from solar panels to meet the demands of staple household appliances, and in any case, electricity from the grid is too cheap to make installation and maintenance of pricey solar panels cost-effective.

Selco, a solar energy firm based in Chevy Chase, Maryland, has shrewdly realized that although current solar energy technology cannot satisfy the average first world consumer, its capabilities are sufficient for inhabitants of third world nations like India and Vietnam, where electricity from the grid may not be readily available. Consumers in these generally poor, isolated areas would need electricity only for basic appliances like lights and fans. For the estimated 100 million families in India without electricity, solar lights are an alternative to kerosene lanterns, which do not generate nearly as much light, create a fire hazard, and pollute the air inside their homes.

A basic solar system can keep the lights running for about 4 hours, and will provide 80 watt-hours of usable power on a good day. By comparison, the U.S. Department of Energy estimates that the average American household consumes roughly 30,000 watt-hours a day. The disparity is remarkable, but the majority of the solar users do not require more energy since they are not running appliances like televisions, computers, washers, and refrigerators.

So far, Selco’s 5 years in India have met with a surprising degree of success. Director Dr. Harish Hande claims 20,000 customer sites across India have already been fitted with its solar panel units, and interest is spreading quickly. It’s a solid start for an unlikely business venture, but there are some setbacks that threaten to keep solar from really catching on. For starters, the Rs. 11,000 (about $225) base price for a unit is anything but a frivolous sum of money in a nation whose average yearly income tops off at Rs. 15,000 ($300)—and ironically, those consumers who would most be interested in using the panels as a primary source of electricity are among the poorest in the nation. However, the Indian government is doling out subsidies and government banks are offering financing at low-level interest rates for those interested in purchasing solar panels, though Hande himself encourages private financing strategies, and is insistent that any government interference will hinder rather than help.

Another snag is the fact that the storage battery for the unit has to be replaced every five years at a cost of Rs. 5,000 ($100), This, along with the fact that the panels require periodic maintenance at additional expense, and that kerosene is relatively cheap, makes it a bit harder to promote the units to customers.

Still, Hande is optimistic about the future of solar in India, though industry experts say it will take years of research and development, and much more money to develop the technology to a level suitable for anything but the least energy demanding of homes. Regardless, many would call Selco’s efforts a step in a right direction for a world that is having difficulty finding independence from fossil fuels.