India reaches 20 GW in installed solar capacity 4 years ahead of target

Cumulative solar installations in India have crossed the target of 20 GW four years ahead of schedule.

 

According to Mercom’s India Solar Project Tracker, the utility-scale cumulative installations for India now stands at 18.4 GW, with rooftop solar accounting for another 1.6 GW.

 

For the first time, solar was the top source of new power capacity additions in India during calendar year 2017, with preliminary figures gathered by Mercom showing that solar installations reached 9.6 GW and accounted for 45 per cent of total capacity additions.

 

The top state for solar installations was Telangana, followed by Karnataka, Andhra Pradesh, and Rajasthan.

 

India’s rooftop solar sector also witnessed steady growth last year.

 

Rooftop solar accounts for 1.6 GW of the 20 GW of capacity installed so far, and could be bolstered by a new Ministry of New and Renewable Energy (MNRE) policy.

 

MNRE recently announced a programme that would provide distribution companies (DISCOMs) incentives for commissioning rooftop solar projects. The effectiveness of the program remains to be seen, said in the report.

Even with the new MNRE initiative, the pace of overall solar installations is likely to be less impressive in 2018 as several protectionist government policies may increase costs and uncertainty.

 

Meanwhile, experts say Centre’s revised solar installation target of 100 GW by 2022 has recently been clashing with Prime Minister Modi’s Make in India Initiative to promote domestic manufacturing. 

 

"The recently announced 70 per cent preliminary safeguard duty recommendation, the ongoing anti-dumping case, and a 7.85 per cent port duty on imported modules are together creating an atmosphere of regulatory uncertainty that is taking a toll on the industry and slowing down installation activity,” said Raj Prabhu, CEO of Mercom Capital Group.

 

The 20 GW of solar installations is a laudable achievement for India. However, it took eight long years to reach 20 GWs and hopefully the pace will pick up soon.