Solar market in India to grow by 90% in 2017: Bridge to India

Solar market

2017 will be a bumper year for the sector in India with total installed capacity reaching around 18 GW by the end of the year

Indian solar market to witness stellar growth in 2017 with total installed capacity reaching around 18 GW by the end of the year claims Bridge to India.

According to the research firm combined with 1.1 GW of expected rooftop solar capacity, India should add a total of 8.8 GW in 2017, ranking it amongst the top three global markets after China and the USA.

Solar tariffs are expected to fall below the critical Rs. 4.00 (USD 0.06)/ kWh mark making solar power the cheapest new source of power. At the same time, improving financial health of power distribution companies due to UDAY implementation will also help in sustaining renewable energy demand in particular. The firm expects sustainable demand of 6-8 GW for utility scale solar in the coming years.

It added “As the Indian market ramps up, it will become a key pillar for demand growth when demand in other leading countries including China, Japan and even possibly the USA is expected to slow down. We already see leading international equipment suppliers paying more attention to this market and developing specific pricing and product strategies for India.”

The research firm however, said it is still unsure if improving domestic demand will lead to large-scale investments in greenfield manufacturing capacity. Notwithstanding the Indian government’s keenness to support domestic manufacturing as part of ‘Make in India’ campaign, the competitive dynamics are stacked against this sector.

Implementation of Goods and Services Tax (GST) during the year will lead to marginal cost increases and may create uncertainty for developers and contractors although there is a widespread expectation that any adverse impact will be passed through to the distribution companies.

Bridget to India forecasts the rooftop solar to continue its spectacular growth trajectory in 2017 and expects around 1.1 GW of rooftop solar capacity to be added this year, up 75% from 2016, driven by capital subsidies and substantial demand from public sector.

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