Growth of Indian Solar Capacity Slowing Down: Experts

According to Bridge To India’s latest report, India’s total solar capacity touched 27.4 GW by the end of September 2018.

India’s solar capacity which had been witnessing a continual growth over the last four year took a slump in 2018 because of policy challenges and struggles in execution of the projects.

Vinay Rustagi, Managing Director of consulting firm Bridge To India, told said that, “We expect 2018 to end with total solar installation of about 8.2 gigawatt (GW). This capacity includes 1.5 GW of rooftop solar. Compared to the Ministry of New and Renewable Energy’s (MNRE) annual target of 16 GW for the current fiscal, we are really far below the expected rate,”

According to Bridge To India’s latest report, India’s total solar capacity touched 27.4 GW by the end of September 2018. This includes 23.2 GW utility scale solar, 3.4 GW rooftop solar and 0.8 GW off-grid solar.

“The Indian solar market has grown spectacularly over last four years but was struggling to sustain because of policy and execution challenges,” he said.

India has set an ambitious target of installing 100 GW solar capacity by the year 2022, out of this only 26% of the target has been achieved. Out of this large scale projects have accounted for 89% and rooftop installations make for the rrest of 11% of India’s solar capacity.

India’s solar installations have slowed in the July to September period n 2018 mainly because of challenges in issuing tenders, auctions and issues related to GST and safeguard duties.

Rustagi said: “Despite the announcement of a 5 per cent rate by the central government, administering authorities have levied different rates and as a result, the capital costs have gone up by 7-9 per cent. The main impact has been delay in implementation and deterioration in project profitability.”

Source: IANS