5. Mapping Development Policy onto the Life-Cycle

Financial support and other incentive structures need to necessarily mirror the maturity of the industry segment under consideration. As a market matures, service provision and financing are likely to represent significant revenue opportunities while dwindling margins on module/equipment manufacture would expedite formation of vertically integrated energy service delivery chains. Following the discussion on the power of scarcity, and the role played by substitutes, we apply the product life cycle framework to analyze the impact of global trends on the photovoltaic industry and for the solar thermal/water heating sector. End-users would be required to pay for the power/service alone while energy service providers would own and operate the generation equipment, much as utilities own generation assets in centrally generated, grid-supplied power systems. The first part of this chapter discusses global trends in solar PV module production and attempts to chart a course for the Indian industry. The latter sections deal with appropriate financial support to help the transition from one stage in the life-cycle to the next, employing the solar thermal industry as an illustrative case.