With the rapid economic expansion, India sees an increased energy demand. This is expected to skyrocket further as products like electric vehicles become more common. Traditionally, India has relied on thermal plants for power generation, but now there is an increased interest in renewable energy, according to Exalta.
Speaking to Digitimes Asia, Ashutosh Verma, Founder of Exalta, explained that the company has witnessed a significant shift in the demand for solar-based products. People are shifting towards renewable energy. Be it EVs, ACs, or other domestic products, the main reason for it is the cost-effectiveness of renewable energy products.
"There's an initial investment, but it saves a lot of money once installed," Verma said. "The unique requirement of Indian customers is that the product should be cost-effective with robust quality. Apart from it, time & space are other factors when it comes to shifting to solar-based products, as we have less space but more demand."
Growth of renewable energy market in India
India is the third largest energy consumer in the world. An increased awareness of sustainable energy sources has raised interest in solar and other renewable energy in the last few years. India ranked third in Renewable Energy Country Attractive Index in 2021.
Verma pointed out that the renewable energy market in India is expected to register a CAGR of more than 10 percent by the next five years. There was a slowdown during COVID, but now the market is picking up again.
"If we talk about the most in-demand source of renewable energy, then solar remains unbeaten," Verma said. "According to a report, solar is the most economical option for electricity generation in most of the world. Looking at the increase in investment opportunities, the solar energy segment is expected to witness the most significant growth in the next five years. Factors such as supportive government policies, rising environmental concerns, incentives, and tax benefits for solar panel installations are expected to drive the market during the forecast period. However, the lack of grid infrastructure in rural areas is likely to hinder the market growth during the forecast period."
Exalta sees a vast untapped market for solar in industrial & commercial sectors. There is also a gradual pickup in wind energy, but it's not as popular as solar yet.
Factors driving demand
The simple factor increasing demand is India's overall growth. Because of the rising need for more power, India is forced to explore renewable sources.
"As for now, when there's an increase in demand, we're producing more electricity," Verma said. "With the escalation in demand, the cost of electricity is also increasing. As a result, we have seen substantial growth in the per unit cost of electricity, and to reduce that cost, people are approaching renewable energy sources like solar panels."
India's Central Electricity Authority (CEA) expects industrial customers to consume 66 percent of the total electricity produced by 2030. To put things in perspective, this number was 50 percent in 2018. Adopting renewable energy will play a crucial role in reaching India's commitments toward its climate goals while ensuring growth.
Interestingly, consumer behavior is different in various parts of the country. India is a vast country with diverse consumers in different regions, and their requirements remain varied.
"For instance, the consumer of the north Indian market is more concerned about the price and requires a decent quality product at affordable prices," Verma said. "This is the main concern for them. In the South Indian market, the customer is ready to pay an adequate amount for decent quality products."
Plans for market penetration
Exalta follows a simplified strategy to decrease the load of the power consumed by the product and increase efficiency. For example, Verma pointed out that many Indian houses used 200W halogen bulbs before. If a house had ten bulbs, electricity usage only for bulbs, would have been around 2KW.
"However, when the current government came into power, they replaced the 200W halogen bulb with a ten or 20W LED bulb and decreased the consumption by 90 percent," Verma said. "We are working on the same strategy. Whenever we're working on any product, we ensure that it can deliver more & consume less energy."
The company is in talks with foreign counterparts for expansion in several areas. Key among them, in the process right now, is regarding exclusivity & exclusive licensing to produce some exclusive domestic products.
