The Indian solar market installed 8,263 MW in CY 2018, down 15.5 percent
compared to 9,782 MW in CY 2017 as the safeguard duty, GST issues, and land and
transmission issues took a toll on the large-scale installations, according to
Mercom India Research’s newly released Q4 and Annual 2018 India Solar Market Update.
Rooftop solar meanwhile had an impressive year growing by 66 percent
Total power capacity additions in India were 16.3 GW in 2018 from all generation sources. Of this, renewable energy sources accounted for nearly 70 percent of installations, with solar representing 50.7 percent of new capacity and wind with 14 percent. Coal accounted for 27.5 percent of new capacity added.
succeed in the Indian solar market, companies need to play the long
game.For the first time in India’s history, solar made up over 50 percent of new power capacity in 2018. We will continue to see a steady shift toward solar as prices continue to drop. This is going to be the new normal as coal plants continue to shutter,” commented Raj Prabhu, CEO and
co-founder of Mercom Capital Group.
Q4 2018, solar installations came to 1,638 MW, up three percent
quarter-over-quarter from the 1,589 MW installed during Q3 2018, but ~52
percent lower YoY compared to the 2,491 MW installed in Q4 2017.
to the report,
rooftop installations in 2018 totaled 1,655 MW, a 66 percent growth
year-over-year. Cumulative rooftop solar installations have reached 3,260 MW.
In terms of annual growth, rooftop solar continues to be a bright spot, as
commercial and industrial entities see rooftop solar as a viable way to combat
higher power tariffs. Following a significant increase of 50 percent
quarter-over-quarter growth from Q4 2017 to Q1 2018, installation growth
remained steady for the rest of the year.
Financing rooftop installations could be challenging in 2019 as Indian banks are facing a liquidity crunch with many banks hitting the exposure limits to the power sector.
report found that solar parks continue to face issues in providing clearly
demarcated-ready land for project development, causing undue delays and putting
additional pressure on large-scale projects.
market is adjusting to the safeguard duty regime, but much will depend on
Chinese solar policy and installation goals going forward. Any increase in
installation targets in China will tighten supplies and harden module prices
while oversupply and module price declines could result if China decides to
pull back on its solar installation targets.
caps and retroactive cancellation of solar auctions have been the biggest
concerns in the investment community,” added Prabhu.
the general election nears, the rules of the election commission could affect
land acquisition and government approvals for solar projects. However,
elections generally mean fewer power cuts and increased power
Key Highlights from Mercom India Research’s Q4 and Annual 2018 India Solar Market Update.
Communications India, a subsidiary of U.S.-based Mercom Capital Group, is a
clean energy research and communications firm in India recognized worldwide for
its expertise in Indian cleantech markets. Located in Bangalore, India, Mercom
has been providing communications and research services across India for clean
energy organizations since early 2009.
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