The development trends of Indian Solar Power in 2018 are slow
Indian Solar Power has exhibited a slow growth trends in year 2018. A dramatic decline in new capacity additions in India’s solar power space has been witnessed during current calendar year, so far. According to various media reports, the trend is likely to continue.
According to renewable energy consultancy firm Bridge to India, the calendar year 2018 started on a good note where the country added the 4,130 MW of new solar capacity. The second quarter of the current calendar year saw the lowest level of capacity addition since early 2017.
Moving forward, the country added 1,697 megawatts (MW) of solar power capacity, in the third quarter of calendar year 2018 – marginally better than the preceding quarter – but is still far below than first quarter of this year.
The firm also estimates the growth to remain lukewarm over the next two quarters on account of increasing volatility in tender issuance, auctions, and capacity addition. It is interesting to note that – while the large-scale utility projects are dragging down the overall growth, the rooftop installations have registered an increase by more than 150% year-on-year basis.
The consultancy firm is of view that, uncertainty over import duty on solar panels has been one of the primary reasons for the growth slowdown.
In order to check on the increasing imports from China and Malaysia, , India imposed a safeguard duty on solar panel imports from the two countries—25% for one year, 20% for the next six months, and 15% for the subsequent six months.
In addition, the Indian government also moved to impose a cap of Rs2.5 ($0.034) per unit as the maximum price that developers could quote at reverse auctions for solar projects. This cap, along with the safeguard duty has been instrumental to great extent in discouraging the bidders.
India has a target of generating 100GW from solar energy by 2022. However, as per Bridge to India, revised best-case estimate for solar capacity by March 2022 is 67 GW which calls for decisive remedial steps to be taken immediately.
