Surging Investments, Govt. subsidies & initiatives and growing awareness driving market for solar rooftop systems in India
India’s energy mix is witnessing significant changes due to the adoption of renewable sources of power. Although, share of renewable energy is low, but it offers immense growth opportunities to the market players. Amongst all renewable energy sources, solar energy is emerging as one of the most promising segments. Factors such as better space optimization, inclusion of net-metering and attractive subsidies by state nodal agencies are expected to fuel the India Solar Rooftop Systems Market.
India’s solar rooftop systems market is anticipated to grow on the back of government initiatives, subsidies, investments and consumer awareness. The government has set a target of 40 GW of power generation through solar rooftop systems by 2022. However, in spite of such aggressive push, the India Solar Rooftop Systems market cumulative capacity installations is expected to reach 26.57 GW by 2022, which is exhibited to drive the market in the forecast period.
According to 6Wresearch, India Solar Rooftop Systems Market revenue is projected to grow at a CAGR of 31.92% during 2016-22. In terms of new capacity installations, commercial & industrial end user application has captured key share of the market pie. In 2015, On-Grid solar rooftop systems accounted for majority of the market revenues; however, due to increasing number solar rooftop projects in rural areas, higher growth is expected in off-grid market.
According to Pulkit Shrivastava, Research Associate, 6Wresearch, “government is aggressively taking measures to push the adoption of these systems by announcing lucrative subsidies. In 2015, Cabinet Committee on Economic Affairs (CCEA) sanctioned $750 million funding in order to provide 30% capital subsidy for rooftop solar installations.
However, high investment and maintenance cost of solar rooftop systems remains a major constraint, which is hindering the exponential growth of the market.”
“In India’s solar rooftop systems market, CAPEX business model is primarily followed, however, shift in trend towards OPEX Model is expected due to high upfront capital requirement for installing of solar rooftop systems.” Pulkit further concluded.
Suhas Pansare, Vice President, RelyOn Solar Pvt. Ltd. (One of the key player in this industry) said, “Industrial and commercial segment is gaining more confidence in the solar rooftop systems as they are able to save more than INR 6/unit for a CAPEX model in a 25 year horizon. Also, the market is experiencing a tremendous boost from government sector due to growing implementation of solar rooftop systems in PSUs including railways.”
The major states that contributed to the major chunk in the India’s Solar Rooftop Systems Market include – Tamil Nadu, Gujarat, Maharashtra, Punjab, Karnataka and Uttar Pradesh. Additionally, the key players in India Solar Rooftop Systems Market are Tata Power, CleanMax, Vikram Solar, Thermax, RelyOn, Moser Baer Solar etc.
