Solar photovoltaic installations in India have crossed 2.5 GW in May 2014. Government incentives have been the main driver in the past and are still the main determinant of the market. In future, parity – driven projects will take hold. For an overview, download our latest India Solar Handbook [download here].
- The first phase of the National Solar Mission (NSM) and the Gujarat solar policy were the main drivers
- Most projects under batch one of phase two in the NSM will be installed in Rajasthan and Madhya Pradesh
- Rajasthan could overtake current leader, Gujarat in terms of total installed capacity within the year 2015
As of May 2014, India had an installed capacity of over 2.5 GW.[1] 70% of it is found in the deserts of the western states of Gujarat and Rajasthan and almost all of it is incentive-driven, utility-scale and grid connected. With around 900 MW installations, Gujarat claims a lion’s share with over 36% of total installed capacity of India. It is a healthy distance ahead of Rajasthan, the second-best state. However, with most new projects under the NSM planned in Rajasthan, Rajasthan will likely overtake Gujarat in terms of total installed capacity within the year 2015. Madhya Pradesh will bridge the distance with Gujarat in terms of installed capacity by end of year 2015. A significant number of projects are planned under NSM in Madhya Pradesh. Additionally, the state has recently allocated 100 MW projects under round two of state policy.
Apart from Gujarat and Rajasthan, only Madhya Pradesh, Maharashtra and Andhra Pradesh have crossed the 100 MW mark. Several other states such as Punjab, Andhra Pradesh, Uttar Pradesh and Karnataka could join the 100 MW club soon, based on PPAs already signed. However, the commissioning of new projects is under threat from the proposed imposition of anti-dumping duties.
[1] BRIDGE TO INDIA project database; BRIDGE TO INDIA data is bottom up, based on individual commissioned project
Mudit Jain is a consultant at BRIDGE TO INDIA.
