With the increasing impact of climate change and environmental concerns, the world is switching to making an investment in renewable energy in India to fulfill energy needs. It’s the most sustainable, natural, and limitless source of energy that is way better than traditional electricity but requires too many resources that impact the environment with harmful gasses.
It’s predicted that renewable energy will become the largest source of electricity production in the future. India stands 3rd globally for renewable energy production and has committed to a goal of 500 GW renewable energy capacity by 2030. Such rapid growth in the renewable energy sector in India attracts many investors to invest in renewable energy and get higher returns with long-term profitability.
If you plan to invest in renewable energy in India to get maximum returns, we’ve got you covered. At SustVest, we guide you to make informed investment decisions to get higher returns.
In this article, we’ve done an in-depth analysis of renewable energy, its future, and why make an investment in renewable energy in India.
Overview of the Renewable Sector in India
Before we dive into why to make an investment in the renewable sector in India, let’s see an overview of the renewable sector in India.
India has a vast potential for renewable energy production as it’s full of natural resources, and the geographical location favors the development of the renewable energy sector. The market size of the renewable energy sector in India reached $20 billion in 2022 and is expected to reach $35.6 billion by 2028, with a growth rate of 10.19%.
At present, India is contributing 4.43% to global renewable energy capacity by generating 168.96 GW. However, the government aims to reach 500 GW by 2030 and zero net emissions by 2070. So it will fulfill 50% of India’s electricity requirements from renewable energy by 2030.
India is rapidly scaling in the renewable energy sector and now stands 3rd globally for renewable energy production from solar, wind, hydro, geothermal, and bioenergy power plants. As the population increases, the demand for electricity increases, which requires so much natural resources. So instead of wasting the limited resources & releasing harmful gasses, the focus shifts to clean energy production to make the environment sustainable and resourceful.
Using natural renewable resources such as solar, wind, hydro, thermal, and bioenergy can reduce the dependency on traditional electricity production, eliminate the usage of nonrenewable resources and protect the environment from harmful gasses.
As there are outstanding benefits of renewable energy as compared to traditional electricity production, the Government and various entities are taking initiatives to promote investment in renewable energy in India, offering tax rebates, incentives, and subsidies that help people to adopt renewable energy products such as solar panels and attract various investors to contribute to the growing demand for renewable energy to get maximum returns.
Types of Renewable Energy Sources
Various types of renewable energy sources are available to generate renewable energy in different ways. Some of the most important types of renewable energy sources are:
1. Solar Energy
The Sun is a limitless energy source, and it’s more than enough to fulfill the entire planet’s electricity needs. To convert the sun’s rays into electricity solar panels are used that capture the sun’s rays and convert them into electricity. It’s the most efficient and cost-effective way to produce clean electricity, better than traditional electricity production. The best part of solar energy is that the sun is shining across the globe, so there are no area limitations to provide solar electricity.
2. Wind Energy
Another popular and unlimited source of energy is wind energy. To convert wind into electricity, wind turbines are attached to motors and blades to produce electricity by capturing wind energy, rotating the motor, and turning it into electricity. It has a huge potential to generate large amounts of renewable energy and contribute significantly to the world’s energy needs.
3. Hydro Energy
It’s another way to generate electricity via water coming from rivers, dams, streams, and oceans. It requires a dam, turbine and a generator to catch the water flow coming from the dam and turns the turbine that generates electricity. It’s a clean, renewable, and reliable source of electricity.
4. Geothermal Energy
It’s produced from the earth’s heat surface, which is found in limited locations where volcanic activities are found. There are geothermal power plants used to capture the natural heat coming from the earth’s surface and convert that heat into steam to generate electricity via generators. It’s also a natural source of electricity, but the chances of generating geothermal energy are rare in India.
5. Biomass Energy
It’s clean and renewable energy from plants, wood, and waste. To generate biomass energy, it burns the waste and produces heat that converts it into steam and is used to start turbines and produce clean electricity.
Why Invest in Renewable Energy in India?
India has abundant natural resources, and it’s a favorable land for renewable energy production from the sun, wind, thermal, hydro, and biomass. It clearly shows that the usage of renewable energy will grow in the coming years. However, if you’re still not convinced, then we have five major reasons why you should invest in renewable energy in India:
1. Fastest-Growing Market
The renewable energy sector is the fastest growing market in India, and the government has already set its aims to shift to renewable energy and make the environment sustainable and naturally resourceful. As the population increases, the demand for energy increases, leading to using renewable energy instead of wasting resources to generate traditional electricity. So the market will increase, and it’s the right time for investors to invest in a growing market to get the best possible returns with long-term profitability.
2. Full Government Support
As India is a favorable land for renewable energy, the government has been actively supporting and spreading awareness by offering various benefits, incentives, and tax rebates that encourage people to adapt to renewable energy more easily and increase renewable energy production in India. That’s why various investors are more confident in investing in India, as it comes with low risks, higher returns, and long-term profitability.
3. Higher ROI
The renewable energy sector is offering potentially higher returns to investors with their investments compared to other options. The biggest reason for getting better returns is renewable energy is an unlimited source of energy, and that’s why it’s a cost-effective option that is affordable and accessible for everyone, and that’s why the expansion is easier that overall gives higher returns.
4. Creating New Job Opportunities
The renewable energy sector comes with various opportunities and creates new jobs in the upcoming future. So it comes with a bigger impact, such as reduced unemployment, driving economic growth, building a skilled workforce, and overall giving social & economic growth.
5. Environmental Impact
Renewable energy is the most sustainable solution to environmental challenges and climate conditions. As it makes natural resources the sources of energy, it eliminates the usage of waste, reduces greenhouse gasses, and increases the electricity generation capacity. India already aims to reduce traditional electricity production to reduce carbon emissions and get maximum electricity from renewable energy sources.
Read here to know: Best Renewable Energy Investment Opportunity in India
Investment in Renewable Energy in India: Future Goals
Renewable Energy is the future, and India is estimated to produce 50% of its total energy from renewable energy sources by 2030. India has recognized the importance and value of renewable energy and its importance for social and economic growth by reducing the negative impact and making the environment sustainable. At present, renewable energy is at its initial stage, and it comes with lots of opportunities that lead to building a strong developed country full of natural resources. Investing in renewable energy in India can be a better opportunity as it’s growing, and rapidly adapting to the changes can get investors higher returns with long-term profitability and environmental sustainability.
FAQ: Investment in Renewable Energy in India
Q.1 Why do people make investment in renewable energy in India?
India is rapidly growing in the renewable energy sector and catching various investors’ attention to invest in sustainable energy and get positive social as well as financial returns.
Q.2 What are the benefits of making an investment in renewable energy in India?
There are various benefits of making an investment in renewable energy such as reducing greenhouse gas emissions, economic growth, and new job opportunities.
Overall, investment in renewable energy in India is a smart choice for investors looking for higher returns with long-term profitability. As India is the fastest-growing market in renewable energy, it unlocks various opportunities and makes the environment sustainable and naturally resourceful. Investing in renewable energy gives investors higher returns and is also considered a big contribution to economic growth. So if you’re wondering how to invest in renewable energy in India to get maximum returns, then invest with expert guidance.
You can get in touch with SustVest and start your investment journey in renewable energy, and you’ll surely invest in the right opportunities to get higher returns.
Founder of Sustvest
Hardik completed his B.Tech from BITS Pilani. Keeping the current global scenario, the growth of renewable energy in mind, and people looking for investment opportunities in mind he founded SustVest ( formerly, Solar Grid X ) in 2018. This venture led him to achieve the ‘Emerging Fintech Talent of the Year in MENA region ‘ in October 2019.