Solar rooftop market in India is projected to grow at a CAGR of over 60 percent during 2016 – 2021, says a new report from TechSci Research.
The growth is attributed to the rising government focus on increasing the share of solar power in the country’s energy mix, according to the research agency.
As per the Census of India 2011 and Wasteland Atlas of India 2011, the total solar power capacity in the country stood at 748 GW, which is more than twice the country’s total installed power capacity.
In 2015, Government of India had set a target of 100 GW of solar power generation in the country by 2022, which is five times more than the target set in 2009.
Total solar power generation capacity increased from around 160 MW in 2010 to more than 6,700 MW in 2016 owing to favorable government initiatives coupled with development in manufacturing technology of solar panels.
In India, the solar rooftop market is still in its nascent phase, and the market is expected to grow at a robust pace over the next five years backed by favorable government measures and abundant solar resources.
In order to boost solar power generation in the country, the Government of India has announced various policies and regulations such as Accelerated Depreciation, Capital Subsidies, Renewable Energy Certificates (RECs), Net Metering Incentives, Assured Power Purchase Agreement, etc. These schemes have helped reduce capital expenditure in building a solar power plant, and subsidize solar power generation in order to make it economically viable for the stakeholders involved in the solar power business.
In addition to these, improvements in manufacturing technology have led to reduction in cost of solar panels which has resulted in reduction in cost of solar power generation. With declining cost of solar power and increasingly favorable government policies, solar power industry is expected to witness bright days ahead, said Karan Chechi, research director with TechSci Research.
Source: TechSci Research