Andhra Pradesh is at the top in India when it comes to solar power, with accumulative generation capacity of 1,867 MW. Telangana State, meanwhile, stands at fourth position with a generation capacity of 1,287 MW. Rajasthan and Tamil Nadu are at second and third positions with 1,812 MW and 1,691MW respectively. The Central Government is giving more importance to solar energy generation and is extending many incentives. In 2016-17, India added 5,525 MW solar power generation capacity, taking the total to 12,288 MW. The Union Power Ministry has estimated that the country has abundant solar power potential – it has been estimated at 748 GW.
From 2,632 MW in 2013-14, the total solar power generation has reached 12,288 MW. Of this, 4,800 MW is from rooftop solar projects while the rest is from large solar projects. In the current financial year, the Centre has decided to add 5,000 MW of rooftop solar and 10,000 MW from large-scale solar projects. Meanwhile, the cost of solar panels has come down in the last 5 years. At present the expenditure to set up I MW solar unit is about `5 crore. This would have cost `17 crore five years ago. The Centre has announced many concessions to set up solar units. It has also extended exemption of customs duty to import solar panels and other equipment. The increase in solar power production has led to a fall in the cost of power in the open market.