Technological breakthroughs and economies of scale will make solar power competitive in six years and support India add 67,000 megawatts of solar generation capacity by 2022 – a lot more than thrice the country’s target, as outlined by a report by consultancy firm, KPMG.

“The present trends indicate that the prospects are very bright for solar power to become equal to standard electricity any time soon after 2017, stated a senior official from the Ministry of New and Renewable Energy.

The report, which is going to be released following week, says solar energy can contribute 7% of the total power wants with the country by 2022, helping cut coal imports by 30% or 71 million tonnes a year. This would lead to saving of $5.5 billion in imports per year from 2022 onwards, it said.

The projected increase in solar capability can reduce India’s carbon emissions by two.5%, which can be a tenth of the 20-25% reduction India has volunteered in the international summit on climate modify in Copenhagen, KPMG says.

It’s estimated that solar power costs would decline in the rate of 7% per annum above the following decade. Efficiency improvement as a result of technological advancement and emergence of low price manufacturing are most likely factors that would aid the continuing trend.

Sates like Rajasthan, Gujarat and Tamil Nadu are expected to take the lead in this direction reaching the grid-parity earlier. Aside from conducive policies in place, other factors getting greater insolation (measure of solar radiation energy received on a given surface region inside a given time) and acquiring small reserves of coal.
Though India might add as much as 17 gigawatts (GW) of solar power by 2017, the cumulative installation between 2017 and 22 can jump 3 fold to 50 GW, the consultancy says. Last year, the Ministry of New and Renewable Energy had opened up competitive bidding for phase-1 with the Jawaharlal Nehru Solar Mission .