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A decade before conversion of solar energy into electricity was quite expensive compare with other renewable energy or conventional fossil fired generated power. For making solar energy as a main stream source of power generation Indian government has taken several initiatives in last 5–6 years. Presently, the deployment of the solar power project in India is governed by both central and state government under the various schemes. These schemes are mainly includes, Feed-in-Tariff (FiT), Renewable Purchase Obligation (RPO), long term Power Purchase Agreements (PPAs), Renewable Energy Certificates (REC), Accelerated Depreciation (AD) benefit and reverse bidding/auctions etc. As an effect of this competitive market environment, the tariff of solar power has come down from INR 17 or US $ 0.27 1 1 In year 2010, US $ 1=INR 45. (year 2010) to less than INR 6 or US $ 0.092 2 2 In year 2015, US $ 1=INR 65. (year 2015). This decremented solar tariff may achieve grid parity soon but also has raised the question of sustainability of the solar power project as well. Additionally, this multi-policy environment of both central and state government has created lots of confusion among the solar power project developers to select scheme and make their investment viable as per other power generation business. This paper summarizes various schemes under the current policy framework in terms of viability of the solar power projects in India. It also includes issues related with the sustainability of the solar power project taken under the competitive bidding process with remarkable lowered tariff than benchmarked tariff (ceiling price)in India (i.e. INR 7 or US $ 0.107). This study will help project developers and other stakeholders to understand the issues related with viability of the project in current multi-policy environment for better planning before investing in the field of solar Power business. [ABSTRACT FROM AUTHOR]

Renewable energy can play a strategic role in India in meeting the country’s growing energy demands, as well as combating climate change. Policymakers have recognized this potential and over the last decade have intensified their efforts towards creating a conducive regulatory and policy framework. Policy instruments such as renewable obligations, feed-in-tariffs and generation based incentives have specially aided the transformation towards large scale generation, enabling higher efficiency and lower costs of generation. However, financing has emerged as a significant barrier for sustaining the momentum gained in recent years. Given this background this paper provides an overview on the evolution of large scale generation and the consequent changes in financing requirements. It further reviews the emerging trends and barriers in the financing landscape and analyses the impact of policy performance in this context. Finally, it considers the design of a national renewable finance framework complete with targeted finance push instruments that can complement existing demand pull policies in facilitating investment. [ABSTRACT FROM AUTHOR]