India is one of the fastest-growing solar markets in the world. Yet the rapid expansion of photovoltaics brings a new challenge: The more solar electricity is generated at the same time, the greater the pressure on its economic value.
For developers and investors, this raises a fundamental question: Is the goal to generate as many kilowatt-hours as possible – or to maximize the financial return on every rupee invested?
When the Sun Shines, Electricity Prices Fall
Traditionally, solar parks have been designed to maximize specific energy yield. Conventional south-facing installations reach their peak output around midday. However, this is precisely when growing solar generation can significantly reduce wholesale electricity prices.
This development is by no means unique to India. In Germany, Spain, Australia, and California, high levels of solar generation already regularly contribute to very low or even negative electricity prices during midday hours.
India is also experiencing significant price differences at times between peak solar generation and later hours of the day. Particularly on hot days, electricity demand often peaks in the afternoon due to extensive air-conditioning use, while solar generation is already declining. This makes the timing of electricity generation increasingly important.
Although market structures and underlying mechanisms differ between countries, the fundamental trend is similar: As more solar plants generate electricity simultaneously, the market value of additional kilowatt-hours tends to decline.
A solar park is typically designed to operate for 25 to 30 years. Its economics should therefore not be evaluated solely on today’s electricity prices and maximum annual energy yields, but also on how the electricity market is likely to evolve.
More Kilowatt-Hours Do Not Necessarily Mean Higher Profits
Fixed-tilt east–west systems offer a different approach. Their orientation distributes electricity generation more evenly across the morning and afternoon, while conventional south-facing systems produce a more pronounced midday peak.
Although east–west systems often generate fewer kilowatt-hours per installed kilowatt-peak annually, this disadvantage can be offset economically if a greater share of their electricity is produced during higher-value hours.
Another important factor is land utilization. With the right mounting structure, east–west systems can accommodate significantly more installed DC capacity on the same land area than conventional south-facing systems requiring larger row spacing.
In India, where land availability, land costs, and efficient utilization of existing grid connections are important project considerations, this can have a substantial impact on overall economics.
More Batteries – or Smarter Solar Park Design?
Battery storage can, of course, shift surplus midday solar electricity to periods of higher demand and electricity prices. However, this flexibility comes at a cost: Additional battery capacity significantly increases total investment and introduces further operating costs and conversion losses.
This raises another important question for project developers: Could higher installed DC capacity on the same land area, combined with a more cost-effective east–west mounting structure and a more valuable generation profile, deliver better economics than a conventional south-facing installation or a tracking system – particularly where additional battery storage would otherwise be required?
Such an approach could potentially achieve lower land requirements, reduced or even zero battery storage capacity, and significantly lower overall CAPEX. The key is to evaluate how these factors affect the levelized cost of electricity (LCOE), achievable electricity revenues, and ultimately project returns.
Project developers should therefore compare not only different battery capacities but also alternative solar park architectures when assessing overall project economics.
The Mounting Structure Makes a Difference
Not all east–west systems automatically deliver the same benefits. The actual design, material consumption, installation speed, and achievable power density are decisive factors.
One example is the PEG system developed by Jurchen Technology. Its compact east–west configuration enables high installed DC capacity per hectare, requires comparatively little steel, and can be installed without heavy machinery. This can significantly reduce both material and installation costs.
Single-axis trackers can also provide a broader generation profile and higher specific energy yields. Compared with PEG, however, they typically involve higher investment costs, greater land requirements, and additional mechanical complexity.
PEG was developed and engineered in Germany, while all system components are manufactured in India. With a major office in Mumbai, Jurchen Technology also maintains a strong local presence in the Indian market. The company thus combines German engineering with local manufacturing and implementation.
Designing for Tomorrow’s Electricity Market
As India’s solar capacity continues to expand, the timing of electricity generation will increasingly determine its economic value. Project developers should therefore evaluate not only specific annual energy yields but also hourly generation profiles, land utilization, and total investment and operating costs.
Naturally, the optimal system configuration also depends on the project’s revenue model. Long-term fixed power purchase agreements create different economic conditions from merchant electricity sales or time-dependent tariffs.
Nevertheless, the fundamental message remains: The solar park with the highest energy yield is not necessarily the one delivering the highest return on investment.
India has an opportunity to design its next generation of solar parks today for the requirements of an increasingly solar-dominated electricity market.
Ultimately, what matters is not how many kilowatt-hours a solar park generates, but how much economic value it creates with every rupee invested.
Henner Jahnke is Chief Sales Officer (CSO) at Jurchen Technology, where he is responsible for the company’s global market strategy. Jurchen Technology develops innovative mounting solutions for utility-scale solar projects, including the PEG high-density east–west system, which was engineered in Germany and is manufactured in India.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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