Mapping Meso-Economic Impacts of Grid-Connected Solar PV Deployments in India: A Social Accounting Matrix Approach

This chapter provides critical insights on developmental impacts of renewable energy scale-up for Indian economy by constructing a social accounting matrix (SAM). Taking a techno-economic perspective, impacts of grid-connected solar deployment as new production activity are estimated for two-established categories (DCR and Open) of solar deployment. This involved construction of independent solar IO blocks integration as a new sector in 35 × 35 national input–output table (2011) obtained from world input–output databases (WIOD). Wage incomes associated with installation of a unit of grid-connected ground-mounted photovoltaic solar power capacity in India is estimated in terms of skill-based labor compensation generation. The study compiles data from NSSO 68th round data (2011) on household consumption expenditure, employment and unemployment indicators and status of education and vocational training to create consumption and income distribution profile of the nine household categories. The analysis reveals greater wage generation for urban households associated with solar deployment and also highlights the fact that projects using domestically manufactured solar panels provide comparatively wider distribution of wages across the household categories and with better penetration in lower deciles of per capita expenditure indicative of superior developmental impacts.