Most Common Challenges Faced by Solar EPC Companies in India
Solar energy is one of the most cost-effective ways to generate electricity while reducing the effect of greenhouse gases. India, being located near the equator, receives abundant solar irradiation for nearly 300 days in a year. Despite this, India has been unable to tap into the solar market for a long time. Reasons? There are various challenges faced by the top solar epc companies in India that are hindering the market growth. Let us delve into the challenges one by one:
Regulatory and Policy Challenges
Policy and framework hindrances are the foremost challenges faced by EPC companies. Complex regulations and policies involved in land acquisition, permits, and approvals lead to delays in project timelines and increased operational costs. Most of the time, policies and regulations fail to provide clarity and stability, hindering project completion. Apart from this, inconsistent policies, complex permitting processes, grid integration issues, and inadequate incentives are a few of the framework challenges faced by solar epc solutions providers.
Financial Challenges
Though the solar industry is undergoing rapid technological advancement, solar epc companies in India are facing major financial challenges to make it available to homeowners. The high initial investment required for solar projects, combined with unpredictability in government incentives and subsidies, is obstructing the financial viability of initiatives. In addition, longer payback periods and access to affordable financing options are two of the biggest hurdles on the way of switching to solar.
Technical Challenges
Staying on top of technology is both an opportunity and a challenge for top solar epc companies in india. Adapting to new technologies enhances project efficiency and output while bringing the best for the homeowners. On the other hand, this also demands investment in employee training and equipment upgrades to be aware of every new know-how.
Operational and Logistical Challenges
As solar installations gain popularity, the supply and logistic chain faces various challenges that can delay projects and reduce profitability. From supply chain complexity to geopolitical concerns and from inefficient trade laws to poor quality control, careful planning is required to handle supply chain interruptions.
Environmental and Social Challenges
Though solar energy is clean and sustainable, producing and disposing of solar panels can have environmental impacts. The top solar epc companies in India must carefully manage their manufacturing and disposal process to minimise carbon footprint. Also, setting up of large solar plants demands land that may lead to land conflicts and ecological disturbances.
Competition and Market Saturation
Consolidation of the solar market often shifts the demand towards more influential players dominating the solar sector. As larger solar companies tend to partner with competitors, market dynamics favour businesses with greater resources and market presence.
This saturation gives rise to concerns related to fair pricing and diverse offerings within the solar energy market. Another crucial challenge is the price war that involves companies using pricing tactics to attract customers. As consumers tend to go with the low bid, this affects them in the long run resulting in poor-quality raw materials and erection glitches.
Higher manufacturing cost
In order to achieve higher cell efficiencies with the best technology, the manufacturing costs go up making solar a costly switch for homeowners. The increased cost of manufacturing is primarily governed by high-quality materials and intensive processing. The manufacturing of the panels involve high-purity silicon that requires advanced equipment and strict quality control, which significantly increases production costs.
Project Delays and Coordination Issues
Project delays and coordination hindrances are the next common challenges EPC companies face in India. Supply chain interruptions, problems with permits, lack of coordination, and unexpected environmental barriers are reasons behind project delays that hinder the installation process. Panel design alterations, structural problems, site circumstances, or new energy standards also pose critical issues in solar implementation.
Being one of the largest providers of turnkey EPC solutions in India, we promise to make solar work for you. As India aims to make 85% of its power from clean, green sources by 2050, we are integral to advancing the country’s clean energy transition by fostering technological innovation and development. In addition, we tend to align with national priorities positioning India as a leader in the solar market.
