India Solar Handbook 2016

India is set to become the fourth largest solar market in the world with expected capacity addition of 6 GW in 2016

more highlights

download

Market Intelligence
Transaction advisory Strategy Consulting
strategy-consulting_landing-09

We serve our clients with superior analysis and tailor-made consulting services on India’s dynamic energy and sustainability market.

Strategy Consulting
Market Intelligence Transaction advisory
transaction advisory_landing

Our team has extensive all round transaction capabilities including project development and financing

Transaction advisory
Strategy Consulting Market Intelligence

subscribe to newsletter thumb
Subscribe to
our newsletter

Subscribe

BRIDGE TO INDIA is the leading consultancy and knowledge services provider in the Indian renewable market. We work with all industry stakeholders including technology companies and contractors, project developers and investors, government agencies and developmental institutions. We have a unique vantage point on the market dynamics, combining the 360 degree view from our market intelligence capability with the in-depth analysis performed as part of our consulting and transaction advisory businesses. Our goal is to enable innovative cleantech solutions in India.

Strategy Consulting Business strategy   Market environment   White papers MarketIntelligence Always up-to-date Industry access 360 degree view TransactionAdvisory Financial advisoryBusiness restructuringDue diligence Uniqueunderstandingof the Indiancleantech market

Over the past two years, the rooftop solar market in India has grown at a compounded annual growth rate of 90%. As of March 31, 2016 the cumulative installed capacity stands at 740 MW (refer INDIA SOLAR HANDBOOK 2016). This growth is directly linked to the improvement in price competitiveness of rooftop solar power vs grid power.

Commercial and industrial (C&I) segment makes up almost 73% of the market, leaving the remaining 27% for the residential segment. As viability improves, we expect industrial rooftop segment to account for the fastest expansion at an annual growth rate of 248% until 2020.

Tamil Nadu leads the installations due to high consumer awareness and lack of reliable grid power. Gujarat comes in second place and here the rooftop market has been primarily driven by state government initiatives.  Maharashtra comes in third driven by high consumer tariffs across all consumer categories is very high.

Around 87% of all rooftop capacity in India is based on the CAPEX model while about 13% (102 MW) is based on the OPEX/ RESCO model. However, the OPEX based project market is showing a year on year growth of about 150%, and is expected to take up a higher market share as the market matures. In other developed countries like the US and UK, the OPEX model is a preferred choice for consumers.

Figure 1: Rooftop solar market capacity in India, MW

Source: BRIDGE TO INDIA research

Despite the impressive growth, the market is still way behind on achieving the 40 GW rooftop capacity target for 2022. This is especially true if we compare it to the success of the utility scale solar segment. The key challenges that the government needs to address are improving net metering policy framework and cost/ availability of financing for consumer and start-up RESCO’s. Consumer education remains another major hurdle for the sector.

 

The Modi government recently completed two years in office. Substantial progress has been made in our view on improving overall sector investment outlook and policy environment in these two years under minister Piyush Goyal.

  • There is a very supportive broad policy framework in place;
  • Specific policies and/or plans have either been put in place or are being deliberated upon for each of the key sectoral issues including land and transmission availability, distribution company (DISCOM) finances and grid capacity;
  • More needs to be done on boosting rooftop solar market and improving long-term financing flow to the sector but the industry seems broadly satisfied with overall progress;

FULL STORY

In our last weekly update, we discussed the state of domestic manufacturing and Indian government’s efforts to improve prospects of the sector after the domestic content requirement mechanism was challenged successfully by the USA at the World Trade Organization (WTO) (refer). Recent reports suggest that the government is planning to offer incentives directly to domestic manufacturers instead of compulsory domestic content requirement (refer). The Indian government seems totally committed to support local manufacturing with Mr Piyush Goyal, Minister for new and renewable energy, being emphatic that India needs a vibrant manufacturing sector to go hand-in-hand with boost in solar power generation.

  • Existing manufacturers may not gain any direct benefit from the new policy, which is likely to focus on creating new, large scale and vertically integrated investments
  • Financial incentives and/or assured market demand may be provided using a bidding based mechanism
  • Long-term outlook for the sector will remain uncertain unless there is a genuine competitive advantage arising from lower costs, better infrastructure and/or access to superior technologies

FULL STORY

With a target of 100 GW, India is hoping to get 8% of its power requirements from solar PV by 2022. In comparison, Germany got around 7.5%[1] of its power consumption from solar PV in 2015 and China is still at around 3%[2]. In Germany, where most of the solar capacity has been deployed in the form of distributed solar projects, billions of Euros are being spent on grid projects to help reduce curtailment in green power. Despite that, according to a government report[3], Germany curtailed about 1,581 gigawatt-hours of green energy in 2014, a threefold increase over the previous year. In China, grid curtailment issues continue to impact the export of power from solar projects and some provinces such as Gansu (31%) and Xinjiang (26%) have been hit particularly badly[4].

In Germany, on sunny weekdays, solar power can cover 35 percent of the momentary electricity demand. On weekends and holidays this ratio goes up to 50 percent and sometimes even higher. At such times, power pricing gets distorted, renewable and other sources of generation often need to be backed down. These problems are occurring despite Germany’s peak daily demand hours coinciding with peak solar generating hours. An integrated European grid, smarter grid management and abundant availability of dispatchable gas based power comes in handy at such times.

FULL STORY

Subscribe to our newsletter

weekly-update-widget

Subscribe to our weekly newsletter and get regular updates on the Indian solar market scene. You can also write to us at contact@bridgetoindia.com with further questions on the market or to request an addition to our mailing list.

subscribe

advertise with us

Advertise with us

Advertising is all about choosing the right platform. BRIDGE TO INDIA offers you uncluttered design, high quality, unique content, and access to the decision-makers in the industry. Contact us to know your options.

advertise

India Goes Solar

IGS banner-01

IndiaGoesSolar.com is developed by BRIDGE TO INDIA as a one stop education and information portal for solar energy end consumers. The website includes several areas of interest to consumers – a discussion forum, listing of solar installers, listing of various solar products, a solar calculator and a blog. For more information, visit our website.

our website

Testimonial

BRIDGE TO INDIA was quick to understand our precise needs and mobilize their team to suit our timescales. The strength of their market relationships and in particular their deep international reach proved very useful to our business.

Mr. Deepak Thakur
MD & CEO
Kirloskar Solar

BRIDGE TO INDIA’s services helped us plan the first solar ready warehouses in India. We intend to scale this across multiple locations in India in the coming years.

Mr. Baranwal
Senior Vice President
TCI

We have been reading every single publication from BRIDGE TO INDIA since we both started in a nascent Indian market in 2010. Their opinions and analyses have been invaluable. They really help shape the market.

Mr. Venugopalan
Director, Business Development
BOSCH