Segmentation of the Indian photovoltaic market

This paper provides an analytical framework studying the actors, networks and institutions and examines the evolution of the Indian Solar Photovoltaic (PV) Market. Different market segments, along the lines of demand and supply of PV equipment, i.e. on the basis of geography, end-use application, subsidy policy and other financing mechanisms, are detailed. The objective of this effort is to identify segments that require special attention from policy makers, donors and the Ministry of Non-Conventional Energy Sources. The paper also discusses the evolution of the commercial PV market in certain parts of the country and trends in the maturity of the market.Indian solar PV industry Segmentation Commercial PV markets

Broad-basing 'green' stock market indices: a concept note

Sustainability ('green') stock market indices are intended to focus attention on environmental credentials, to reward superior performance and to help channel investments. Such indices often incorporate clean energy, waste, water and waste water treatment, recycling and other 'pure play enviro' companies. This paper contends that in keeping with the philosophy of Green Economics, which advocates an expansive view of humankind's interaction with the environment, true environmental performance ('greenness') is indexed by the eco-sensitivity of mainstream businesses, by the level of stakeholder involvement and by the extent of information readily made available to society. Effective enforcement of environmental regulation requires contributions from all stakeholders concerned. With voluntary participation from businesses not readily forthcoming, and given the price-sensitivity of consumers, investors, through the incentive structures they face, could contribute to better enforcement of regulatory standards. Broad-basing the green index could be interpreted as recognising and rewarding the superior environmental performance of mainstream businesses and/or ensuring adequate representation in emerging markets, where a large number of 'pure play enviro' related instruments are unlikely to be listed.green economics; green stock markets; stock market indices; eco-sensitive business; emerging markets; environmental goodwill; sustainability; sustainable development; environmental performance.

Subsidy policy and the enlargement of choice

Development is the enlargement of people's choices. Optimal subsidy policy is intended to create the right incentives for each of the value chain participants. This paper contends that the interest subsidy offered by the Indian federal Ministry of New and Renewable Energy for solar thermal systems, through mainstream banking channels is superior in intent and outcome compared to the capital subsidy as currently offered for solar PV systems, routed through government controlled delivery channels. The interest subsidy enhances innovation, improves service delivery and expands the range of product available to consumers enjoying a wide range of endowments, thus leading to more inclusive development. The simple monopoly model developed by Atkinson [Atkinson AB. Capabilities, exclusion and the supply of goods. In: Basu K, Pattanaik P, Suzumura K, editor, Choice, Welfare and Development. Oxford University Press; 1995] is applied to the context of solar home systems to demonstrate price reduction and choice expansion in a liberalized market, facilitated by an interest subsidy scheme.Incentive structures Choice enlargement Solar energy systems

Microfinance for Renewable Energy: financing the 'former poor'

Microbanking facilities have helped large numbers of developing country nationals by supporting the establishment and growth of microenterprises. And yet, the microfinance movement has grown on the back of passive replication and needs to be revitalised with new product offerings and innovative service delivery. Renewable Energy systems viz., solar home systems, biogas digesters, etc., serve to improve indoor air quality, provide superior light and extend working and study hours. Such applications are not inherently income generating and returns on such investments accrue from cost avoidance, but should qualify for microfunding, as such 'quality of life' investments, reflect borrower maturity and simultaneously contribute to MFI sustainability.microfinance; MF; renewable energy; RE; microbanking; non-self-liquidating loans; quality-of-life investments; microenterprises; new product development; service delivery; solar energy; solar power; biogas; air quality; sustainability; sustainable development; product innovation.

The Indian solar photovoltaic industry: a life cycle analysis

This paper applies the product life cycle framework to analyze the impact of global trends on the Indian photovoltaic industry. The author believes that consolidation in the Indian industry simultaneous with exploiting its comparative advantage of flexible and low cost production techniques would help it stand on its own feet beyond the protectionist subsidy era. Service provision and financing are likely to represent significant revenue opportunities while dwindling margins on module manufacture would expedite formation of vertically integrated energy service delivery chains.Indian solar PV industry Consolidation Vertical integration

Real Option Valuation Methodology for Household-Scale Renewable Energy Systems

The installation of household-scale renewable energy (RE) assets including the likes of solar home systems, micro-wind turbines, pico-hydro systems, biomass space heaters and improved cook-stoves, offers householders various benefits. These include the possibility of working longer hours, enhancing the efficiency of production processes, improving the quality of life, and of gaining greater control over their immediate environment. In several settings, artisans pursuing the same vocation work from homes located in clusters. Consequent to procuring and deploying the RE asset, the community of individual investors bestows upon itself the option to derive incremental money incomes. This is subject to each member’s access to working-capital credit and raw material,skill levels and levels of effort, productivity, and more. This paper argues that householders assess the option to derive incremental incomes and go on to makethe investment decision in RE micro-infrastructure based on the estimated value of such options. The model so developed is applied to a community of silk weavers in southern India to estimate the premiumsthatinvestors pay to opt into derivingincremental incomes. This study could estimate that by installing a Solar Home System, a weaver could derive an economic benefit of 17.36% and an intangible benefit of 82.64% of the amount invested into the asset.   Received: 15 June 2023 | Revised: 1 September 2023 | Accepted: 12 November 2023    Conflicts of Interest The authors declare that they have no conflicts of interest to this work