Social cost benefit analysis of solar power projects

Abstract

The social cost benefit analysis provides a scientific base for the appraisal of projects with a view to determine whether the total social benefits of a project justify the total social costs. India is endowed with immense solar energy potential as it is located in the tropical zone of the earth. Government of India launched The Jawaharlal Nehru National Solar Mission with the intention of to be a global leader in solar energy. But, the main setback of the solar power is high generation cost. This study unveils social benefit is greater than the social cost in case of solar power. However, the high startup capital keeps the customers away from solar power. Thus, necessary measures to be taken to bring down the cost of solar power to ensure the viability. The wide range of technologies available today, to harness the sun energy, is classified into passive and active technologies. The active technologies, which formed the content of this paper, are broadly divided into photovoltaic and solar thermal, where solar thermal can be further classified into solar-thermal electric and non-electric applications. The market for many of the solar energy technologies has seen dramatic expansion over the past decade in particular the expansion of the market for grid-connected PV systems and solar hot water systems have been remarkable. Since solar power is in the nascent stage, it is mandatory to assess its impact on society. Solar power guarantees various benefits including carbon credit, renewable energy certificate, employment generation, rural electrification, curbing global warming and also ensures overall development.