India's rooftop solar market grows at CAGR of 98% in 4 years

India’s rooftop solar market has expanded at a compound annual growth rate (CAGR) of 98% in the last four years to reach a total capacity of 1,020 MW as of end-September 2016, according to Bridge to India.

The consultancy said on Wednesday that this growth was primarily driven by the improvement in price competitiveness of rooftop solar power compared to grid power.

At present, the commercial and industrial (C&I) segment accounts for nearly 63% of the market, with the residential segment making up 25% and the government segment accounting for the remaining 12%.

The C&I segment has grown at a CAGR of 103% in the last four years and Bridge to India expects it to nearly double by 2017 before reaching a CAGR of 51% until 2022.

Meanwhile, the government rooftop solar segment has expanded at a CAGR of 118%. The consultancy anticipates that this segment will account for 24% of the total market by 2022, when total rooftop solar capacity on government-owned buildings will approximate 4,000 MW.

Bridge to India pointed at the OPEX model, where a third-party developer owns and installs solar panels for a customer, saying that it has gained traction in recent years. The share of such projects has gone up to 23% in 2016 from 3% in 2012. This market now accounts for about 16% of total deployed capacity.

Bridge to India estimates that the government segment will account for about 44% of the total OPEX market by 2022.

Choose your newsletter by Renewables Now. Join for free!