Is renewable energy a good investment?
Amidst traditional energy sources hitting their fag end, renewable energy space seems to be stepping in and making the best of the available opportunity. Economies around the world are consciously factoring in that fossil reserves may soon run out. This is why the renewable energy theme is receiving a lot of traction. Economies are pumping tons of subsidies into the renewable energy space with the aim of offsetting their energy needs from fossils. Even though there’s been enough talk about renewable energy in the last couple of decades, investments in the renewable energy theme have lacked luster. High costs of production in the case of renewable energy could be attributed as the biggest reason for this. However, a positive attitude from the governments towards their zero-emissions policies, big players entering the renewable energy space, improving technology, and readily available financing have brought a notable turnaround. India, too, is taking some giant leaps in developing viable, clean energy resources. Between 2014 and 2021, the renewable energy capacity has increased 2.5-fold in India. In the Union Budget 2022-23, the government showed aggressive intent to manufacture solar modules. In line, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to implement the same.