However, as the solar boom kicks into full swing with generous incentives producing larger and larger projects, it's vital that the broader transformative opportunity that distributed solar represents not be lost. It is hard to grasp just how vast the solar boom is shaping up to be. Last year alone global investors pumped a record $211 billion into renewable, 33% more than 2009, and 540% more than 2004.
For the first time, more of this investment ($72 billion) came from developing countries than developed ($70 billion). Despite massive Chinese investments, a significant driver of the renewable energy investment in developing countries has been a push for energy access in rural areas where centralized grid extension has failed - a point made clear by the fact that solar investments ($86 billion) nearly matched wind investments ($93 billion) in 2010 when small-scale projects are included.
Nowhere is this truer than India, where solar investment has been driven almost exclusively by off grid applications. In fact, until very recently over 97% of all solar PV applications were in off-grid settings (PDF); Rural Indians are simply tired of waiting for the promises of centralized grid extension which, despite a 60% increase over the past decade, has only increased energy access by 10%.
Now, however, dramatically falling PV prices, skyrocketing fossil fuel prices, and generous government incentives through the solar mission, have shifted priorities. Rather than "scale up" a decentralized model of energy delivery that has succeeded in priming the market, only 10% of the total solar mission incentives are dedicated to off-grid applications. As a result, investors are eagerly eyeing opportunities to deploy large-scale solar arrays across India to tap into the country's vast solar resources - and vast profit opportunities.
This shift however is accompanied by growing unease that the issues of displacement, land acquisition and continued energy poverty that have long marred traditional energy development will remain as India turns towards large-scale grid tied projects. These concerns have led renowned Indian social entrepreneurs like Harish Hande to declare the Indian solar mission to be "anti-poor".
Others, including policy think tank Prayas, have suggested that the mission's priorities must be realigned to reflect domestic realities: "The success of the (National Solar Mission) lies in urgently providing solar lighting systems and off-grid solar power to a third of India's population that is unlikely to have proper access to electricity in the near future." Read the full report here.
Source: Justin Guay, Sierra Club International Program.
