Utility-scale solar demand in India to peak in 2017

Annual utility-scale solar capacity additions in India will peak this year at some 8 GW and then decline to an annual level of 5 GW-6 GW for the next few years, Bridge to India forecasts.

The solar sector in the country has to deal with a number challenges, with the most significant being the slowing power demand, the consultancy said. An unexpected increase in solar module prices, new domestic tax rates, and an ongoing anti-dumping investigation are all clouding the future expansion of the Indian solar sector.

Currently, seven states account for more than 80% of the installed and pipeline solar capacity of 27 GW in India. Karnataka, Andhra Pradesh, Tamil Nadu, Telangana and Rajasthan are the top five states for solar with roughly 3 GW each, followed by Madhya Pradesh and Punjab.

“They [these states] have front-loaded their solar power demand and are well ahead of their annual targets determined by the Ministry of New and Renewable Energy (MNRE),” Bridge to India says. It expects a slowdown in solar activity there in the future. Some in the list have already backed out of solar tenders.

India has turned into the world's third largest solar market this year, after China and the US.

Choose your newsletter by Renewables Now. Join for free!