Is The Indian Solar Sector At The Crossroads?

Is the Indian solar market still on a roll, riding a crest with lowering tariffs, and the introduction of GST? Let us delve deeper into this dynamic market…

- Sudeshna Das

Energy demand in India is increasing at a brisk pace, while the supply, though growing, is not able to keep up. Considering the ever increasing difference between the generation and consumption of energy, solar energy is going to play a major role in fulfilling the needs of the energy sector. Therefore, solar power, despite the initial challenges in the sector, offers huge opportunities.

The business environment in the Indian solar industry has evolved a lot in the last one year and the market has become much more competitive as a result of continuous tariff falls, the government slowing down the pace of new tender announcements to encourage more private developers, the introduction of GST, etc. In this report, we try to provide insights about India’s changing solar industry landscape, focusing primarily on the latest market forces.

India grabs the power baton

A survey by Wood Mackenzie on the global energy markets, which focuses on the upcoming market shifts, concludes that global energy demand will keep rising through 2035. However, the nature of the energy mix, the demand centres and the key players will change significantly. The report also indicates that energy demand in India is growing the fastest, at an annual average rate of 3 per cent from now to 2035, by which time the country’s population will outgrow even China’s. Renewables will surge from 22 per cent to 54 per cent of total installed capacity, while oil consumption will rise by 80 per cent. According to an Indian Brand Equity Foundation (IBEF) report, India ranks third among 40 countries in Ernst and Young’s ‘Renewable Energy Country Attractiveness Index’, supported by the government’s strong support for renewable energy that focuses on implementing renewable energy projects in a time bound manner.