Government Initiatives in Fostering Solar Energy use by SMEs in India.

Abstract

This paper is an empirical examination of the role of the government in promoting Photovoltaic (PV) systems among small and medium businesses in the context of a developing country. This paper seeks to integrate research findings in the areas of renewable energy technologies and the diffusion of photovoltaic technology. Primary research was conducted in the hospitality industry in India as it is not exempt from the detrimental effect of frequent scheduled and unscheduled power-cuts. Empirical results show that majority of the respondents have emphasised that the initiatives taken by the government is very important to fostering the use of PV systems. Therefore, the government should play a leadership role in regards to policy development, legislation, institutional support, tariff formulation, training, information dissemination and education. A variety of government initiatives are required to stimulate a ‘market pull’ for alternative energy sources.