Indian solar market to witness little growth in 2014, says Mercom

By Editor


India will witness very little growth in solar installations year over year in 2014, says a new report from Mercom Capital Group.

Mercom Capital Group estimates solar capacity in India is likely to reach 1,000 MW, demonstrating little growth from 1,004 MW in 2013 and 986 MW in 2012.

The slow growth of solar industry in India is attributed to many reasons. The first, the agency says, is the lack of preparation for the Jawaharlal Nehru National Solar Mission (JNNSM) projects. According to Mercom, no JNNSM projects are likely to come online until at least mid 2015.

Solar industry in India is confronted with a number of other challenges. Many CSP projects are stalled over disputes and lack of clarity among state governments. There is no real Renewable Purchase Obligation (RPO) enforcement in place in many states.

Solar panels

The political climate in the country also does not favor the industry. With elections fast approaching, large solar projects are likely to suffer owing to the delays in the processing and implementation.

Adding to this is the recent trade war between the U.S and India over the domestic content requirements  in JNNSM. Of late the U.S warned it will file suit against India in WTO. India has, however, defended its stand citing serious concerns over U.S. imports.

To rescue the industry from collapse, developers should go directly to consumers. India is one of the world’s largest power-started markets waiting to be served by better means like solar and wind.

Despite this, Indian solar market opens huge opportunities for providers thanks to the power cuts and rising costs of backup solutions.

“The case for solar in India will remain strong as long as the relevant policy goals address power shortages that affect millions of Indians, businesses, industries, and agriculture,” said Raj Prabhu, CEO and co-founder of Mercom Capital Group.

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