Solar installations in India dropped by 12 per cent in 2019 to 7,346 megawatt (MW), as points like slowdown of the economic system , tariff caps and funding points plagued the sector. The nation had put in 8,338 MW in 2018.
While large-scale photo voltaic tasks accounted for 85 per cent of installations with 6,242 MW and noticed a 7 per cent decline, rooftop photo voltaic added only one,104 MW, a 33 per cent drop yr on yr, stated Mercom India, a analysis company monitoring the sector.
Karnataka was the highest state for photo voltaic in 2019 with 1.Eight gigawatt (GW), adopted by Rajasthan and Tamil Nadu. Together, these three states accounted for nearly 70 per cent of photo voltaic installations in 2019. Multiple points led to the decline in photo voltaic additions like elections, slowing economic system, liquidity points, tariff caps, lack of financing, curtailment, fee delays, and energy buy settlement (PPA) renegotiations in Andhra Pradesh. Rooftop installations declined for the primary time in 5 years due to slowdown in economic system, together with liquidity points following the NBFC disaster which made it extraordinarily troublesome for installers to finance rooftop tasks in a troublesome economic system, stated the report.
“The demand outlook for 2020 looks better with a stronger project pipeline, and we should see the solar market resume year-over-year growth again. But a lot will depend on the economy and lending situation getting back on track, the impact of coronavirus, and the outcome of the 20 percent basic customs duty announced in the recent budget,” stated Raj Prabhu, CEO of Mercom Capital Group.
There are a number of challenges confronted by the business, however a number of fixes that would instantly turnaround the sector could be to take away tariff caps in reverse auctions, getting authorities companies to make well timed funds and facilitate lending to get the photo voltaic market shifting in the precise route once more, he added.
At the tip of 2019, cumulative photo voltaic installations reached virtually 35.7 gigawatts (GW). Large-scale tasks accounted for 31.three GW (87.6%), whereas rooftop photo voltaic installations accounted for 4.Four GW (12.4%). The large-scale photo voltaic mission growth pipeline stands at 23.7 GW, with 31.5 GW of tasks tendered and pending public sale on the finish of This fall 2019.
After 5 consecutive years of decline, coal accounted for a majority of the ability installations with 7.Eight GW and made up 44.1% of the put in capability, adopted by photo voltaic with 7.three GW. Wind accounted for two.Four GW adopted by small hydro and different renewables with 154 MW and 82.5 MW respectively. Even with coal installations rising, renewables collectively nonetheless made up a majority of the installations in 2019.
The report stated yr 2020 might even see a 17 per cent development in photo voltaic installations to roughly 8.5 GW and estimates photo voltaic installations in the 65-70 GW vary by 2022 primarily based on present market circumstances. The authorities has set a photo voltaic set up goal of 100 GW by 2022.
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