The group credits the dropping cost of producing solar power, which in turn will motivate more people to go solar and drop the price even further.
The price of solar photovoltaics has dropped 80% since 2008, according to International Renewable Energy Agency, and solar module efficiency has risen 3.5% – 4.5% every year. Large projects have become more common and are making cheap solar power an everyday phenomenon.
The research group also expects more and more individuals to switch to solar, since the government has introduced 100GW of grid-connected solar projects, mainstreaming the technology further.
Additionally, once the price reaches a certain critical low point, investors will no longer view the technology as novel and therefore expect higher returns.
The estimates and numbers by Ind-Ra do not need to factor in any governmental support like subsidies, since the price will be low enough that they will not be necessary.
Recent bids by actual utility companies seem to support the numbers reported by Ind-Ra, and lately, solar farms and utility companies have made deals to buy and sell solar power for the cheapest prices in history.
Solar tariffs have already been decreasing and will continue to do so. Currently, coal tariffs are only 1%-14% cheaper than solar tariffs, more encouraging news that solar power is becoming a viable option for more and more people.
India is a country whose economy relies heavily on manufacturing, and they are often seen as a country that emits a lot of carbon dioxide. Since the rest of the world likes to buy their products, India is finding a way to make their economic model environmentally friendly, too.