Business Standard

Rooftop solar power capacity crosses 1 Gw mark: Report

Bridge to India report said market is expected to reach a total capacity of 12.7 Gw by 2021

Press Trust of India  |  New Delhi 

Solar energy powering rural growth

India's solar energy capacity has crossed 1 gigawatt (GW) mark this year with 513 MW generation capacity added over the past 12 months, says Bridge to India report.

"As per the report, titled 'India Solar Map', India's solar capacity has crossed 1 GW mark this year," said consultancy services provider Bridge to India.

India has added 513 MW of solar capacity over the past 12 months, growing at 113 per cent over previous 12 months, reaching total installed capacity of 1,020 MW, according to the report released today at Intersolar

Last year's capacity addition is more than the addition of all previous years put together. 22 per cent of capacity added through PPA (power purchase agreements) based projects.

CleanMax, Amplus Solar, Cleantech Solar, Azure Power, Rays Expert and Hero Future Energies are some of the leading companies offering PPAs.

The solar market growth is directly linked to improving the economics of solar. Most commercial and industrial consumers can reduce their power bills by 20-30 per cent with

It said this growth is expected to continue in the years to come and the market is expected to reach a total capacity of 12.7 GW by 2021.

The report also highlights that commercial and industrial consumers dominate the market with 63 per cent of installed capacity. Grid parity for these consumers has now been achieved in 17 out of the 19 largest states in India.

In states such as Maharashtra and Haryana, tariff differential between grid power and can be as high as 30 per cent, it said.

This has been much steeper than what most analysts had earlier predicted and has helped in achieving the existing growth rate, it added.

Bridge to India MD Vinay Rustagi said, "solar has been a side-story in the Indian solar sector so far but that is beginning to change now. The sector is growing rapidly and beginning to realise its potential, thanks largely to increasing cost competitiveness of vs grid power."

Rustagi further said,"We expect solar to outpace growth in the utility solar market in the coming years. The government has announced attractive policies such as net metering, subsidies for select customers and cheaper debt financing for the sector although there is huge scope for improvement on every front."

There is also substantial capacity being created in the government sector itself, he added.

Tamil Nadu, Maharashtra and Gujarat are leading in terms of total installed capacity. The government solar segment has grown to over 10 per cent in total installed capacity.

First Published: Wed, October 19 2016. 14:28 IST