India's rooftop 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.
India has added 513 MW of rooftop 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 Mumbai.
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 rooftop solar market growth is directly linked to improving the economics of rooftop solar. Most commercial and industrial consumers can reduce their power bills by 20-30 per cent with rooftop solar power.
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.
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, "Rooftop 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 rooftop solar power vs grid power."
Rustagi further said,"We expect rooftop 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 rooftop 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 rooftop solar segment has grown to over 10 per cent in total installed capacity.