Published By : 05 Jan 2016 | Published By : QYRESEARCH
In the APAC renewable energy market, India is making ripples due to its fast growth in this sector. The efforts of India to boost its energy production using solar power has seen a drastic growth. In the past five years, India has increasingly realized the potential of solar power in providing clean energy to the country. In India, resources such as land and affordable manufacturing will further propel the solar power sector.
Furthermore, investments in the solar power sector in India have witnessed an upward trend. By July 2015, India witnessed the launch of several favorable government incentives driving the solar power sector in the country. Many of the subsidies were aimed at installing rooftop solar systems. Recently, it was announced that India has increased its subsidy further for fitting rooftop solar power systems eightfold going to 50 billion rupees aimed at expanding installations by the end of 2020.
Nevertheless, many commercial and non-state entities will not be eligible for this subsidy as they will be receiving other benefits such as excise duty concessions, customs concessions, and accelerated depreciations that were announced earlier. The current elevated subsidy program aims to drive installations of rooftop solar systems to 4.2 GW by the end of March 2020.
This push by the government of India is projected to have a positive impact on the overall growth of the building integrated photovoltaic (BIPV) systems market in the nation. According to a solar research consultant, this elevated subsidy will be adequate enough about half the installation target. However, it will not be an efficient use of tax payer’s money and there are many issues that might impede the growth of this market from different perspectives.
In October 2015, the installed rooftop capacity of India was noted around 520 MW. Presently, India is planning to install around 100 GW of solar capacity by the end of 2022. This means 40 GW of this capacity is expected from the installation of rooftop systems, which includes the subsidized fittings. Although some details have emerged on how the 100 GW target will be achieved, the market is still awaiting a systematic growth roadmap for the solar sector.