India is set to replicate its information technology (IT) sector success in solar energy. With every known business entity exploring its own agenda in the solar energy sector, the country is already at the starting point of an energy revolution.

All prominent Indian companies have either set up their wholly-owned solar energy subsidiaries or have gone in for joint ventures or have set up solar energy divisions within their existing operations. The predominant business model being pursued by them currently is of grid-tied project development.

However, as more avenues open up for captive and REC-driven solar power projects, business entities are seeing more value in getting ready for the next wave. (RECs are renewable energy certificates that have become tradable commodities on India’s different power exchanges.)

The private business sector is gearing up for solar energy even though there is an almost policy paralysis with the central government, while different state governments have slowed down or postponed their policy initiatives. Most companies have set up small teams, seeking to explore opportunities in off-grid, micro-grid and roof-top applications to serve the larger private consumer market.

These opportunities are small in terms of ticket-size, but these are enabling all new entrants to test technologies, processes and their people. Gaining experience through pilot projects seems to be the underlying thought.

And, it is not only in the PV space that this activity is happening. Companies are finding solar thermal, particularly heat and steam applications, too to be exciting opportunities. Roof-top solar water heaters, one of the oldest availably solar solutions, are now increasingly becoming a USP (unique selling position) for residential property developers to offer to their prospective customers. The property developers on their part are forming joint ventures with technologists to gain a share in a market that will surely see exponential growth in the years to come.

Among the predominant and already-known entrants are the Reliance business groups, Lanco Infratech, Moser-Baer, Tatas and BHEL. But, other corporate houses like that of automobile major Mahindra, finance major Welspun, finance major Kotak and the Birla group too have taken long bets on the solar energy sector.

International majors like First Solar, juwi, abakus Solar, Bosch Solar, DelSolar, EMMVEE and SCHOTT are also among those who have taken long bets on the Indian market. Some of such players, who are largely equipment manufacturers or suppliers in the other markets, are even keen to become project developers in a country where more than 30 percent of the population is still without any grid-supplied power.

Dedicated and recently-promoted solar companies include Azure Power, Waaree, GreenBrilliance, Vikram Solar and Indosolar. If I took the time to list the scores of other newly established regional players, you might think that the market is already over-crowded – all are waiting for the solar energy wave to come in.

The above phenomenon is largely reminiscent of the early part of 1990s when almost all business entities in India stepped into the information technology (IT), or more specifically software services, arena. The dotcom boom of the late 90s and parallel offshoring of various service jobs placed Indian’s IT sector among the world majors.

The current euphoria, however, is not without its own set of challenges and risks. The number of marketing and sales CVs that have started getting shared through emails proves that at this time business is not a brisk as was expected. These CVs are not only of those professionals who are wishing to enter the solar sector, but also of professionals who claim to have at least a couple of years of experience in India’s solar project development space.

Nevertheless, as awareness rises, as conventional power becomes costlier and as power shortages increase, the demand for solar power will rise. And this day is certainly not far off.

Lead image: Sihouette Taj Mahal via Shutterstock