SEMI India unveils 'recommended best practices for solar feed-in-tariffs (FIT) and their relevance in Indian context

BANGALORE, INDIA: SEMI (Semiconductor Equipment Materials International)/PV Group, the leading industry association serving the photovoltaic supply chain, organized a panel discussion to discuss its public policy principles on Feed-In Tariffs and their relevance to the Jawaharlal Nehru National Solar Mission (JN NSM).

A SEMI/PV Group White Paper on Policy Principles and Recommended Global Best practices for Solar Feed-in Tariffs, titled ‘Advancing a sustainable Solar Future’ along with comments on its relevance to the Indian context was also unveiled.

The focus of the white paper is on best practices that would enhance feed-in-tariffs (FITs) as a mechanism to advance solar energy in markets. FIT is currently now in practice in over 30 countries and has been present for over 20 years in mature PV markets. FIT is also an effective and versatile mechanism and can be successfully integrated with any country’s existing policies.

The best practices and characteristics of FITs outlined in the White Paper include, support for technology differentiation, setting of generation cost-based rates, fair purchase and interconnection requirements, use of fixed price and long term payments and the use of predictable incentive declines.

Sathya Prasad, President SEMI India was joined by prominent solar industry leaders including K. Subramanya, CEO, Tata BP Solar and Chair SEMI India PV Advisory Committee, and Dr. J. Gururaja, Honorary Executive President, REAF (Renewable Energy Advocacy Forum) on the panel with K Subramanya as the Chairperson.The session aimed at raising awareness about the relevance of Global Best Practices on Feed-in-Tariffs for promoting solar/PV expansion in the country, also addressed results of a global survey of FIT policies, drawing of comparisons between the global survey and recommended FIT practices, key comparisons between the JN NSM and global FIT best practices, current status of the Mission and the importance of its successful & effective implementation for the growth of solar/PV in India.

Setting the context, Sathya Prasad, President, SEMI India, stressed the role and importance of incorporating best practices of Feed-in-Tariffs for the growth of the PV industry in the country. He said ‘Our study suggests that the JN NSM aligns well with global Feed-in Tariff best practices and should therefore provide a good foundation for a flourishing solar/PV market, manufacturing industry and job growth in India.

With this landmark policy framework in place and the key role envisaged for solar in India’s energy future, the focus must now be to ensure the successful implementation of the mission.’

In his comments as Chair of the panel, K Subramanya, CEO, Tata BP Solar India, said: “Germany with roughly half the sunshine levels of India has emerged over the last decade as the global market leader with more than 30 percent of all solar PV installations because of an attractive and well thought out feed-in tariff regime that incentivised the uptake of solar power systems with annual decrease in tariff tied to the total amount of installations and graduated rates for different system sizes.

“This has led individuals to warm up to solar power and helped to create a solar market which is going to sustain itself as the cost of solar decreases and nears grid parity in the next few years. In India, too, we are going in for the feed-in tariffs within the framework of the national solar mission and it is expected to drive up a large scale and rapid diffusion of solar energy in the country.”

Dr Madhusudan Atre, President, Applied Materials India, Co-Chair SEMI India PV Advisory Committee said, ‘Growth and development of indigenous technology, base of skilled human resources, Indian manufacturing capabilities and ecosystem, customer reach out through marketing and sales are critical for the growth of the solar industry in India - both for on-grid and distributed systems."

SEMI India is also organizing, for the second consecutive year, SOLARCON India 2010, the premier international solar energy focused industry event, at the Hyderabad International Convention Centre, Hyderabad from 28 - 30 July 2010.