Over 285 MW of rooftop solar projects have been commissioned so far (as of 31st October 2014)
Tamil Nadu is the leading state with over 50 MW
Over 40% of all Indian states have already reached commercial grid parity
Total installed capacity in the industrial and commercial segments is 173 MW (60% of the total market)
Delhi, India, November 17th 2014: India will likely see a record growth of new solar installations in the next few years and, for the first time, the rooftop solar segment will contribute significantly to this growth. The key market drivers are grid and diesel parity as well as the net metering policies being announced in several states. The rooftop solar market is still at a nascent stage with a very diverse set of participants and exciting dynamics. The need of the hour was to map it.
We at BRIDGE TO INDIA, a leading consultant and thought leader in the Indian cleantech market, have analyzed the growth trends, installed capacities, regulations and policies, competitive landscape and the projections of the key players in the rooftop solar industry. Our observations are presented in the form of an easily readable infographic, the first ever India Rooftop Solar Map.
Industrial and commercial rooftop solar segment will take the lead
The industrial and commercial segment is 60% of the total rooftop solar market in India. The market is still highly fragmented with hundreds of small installers offering their services. The list of MNRE channel partners alone encompasses 234 companies. However, larger players are gaining ground. The market leader is Tata Power Solar with a market share of 15%.Solar power is already an attractive choice vis-à-vis grid power in for commercial customers in 13 states and for industrial customers in 12 states. BRIDGE TO INDIA expects the fastest expansion in the industrial rooftop segment with an annual growth rate of 133% until 2018.
Residential solar market will follow later
The residential solar market is even more fragmented than the industrial and commercial market. The total installed capacity is 112 MW. As of today, this is more driven by the need for power and a desire to have energy independence or green power, than it is by underlying commercial benefits.
Tobias Engelmeier, Founder & Director, BRIDGE TO INDIA says, The rooftop market presents a vast opportunity. The potential in India is easily in excess of 100 GW. So far, only a tiny fraction of this opportunity has been tapped. As the economics of electricity will continue to shift in favor of local solar solutions, I am convinced that we will see phenomenal growth in the next 5 years. A significant fact that surfaced during our analysis, is that across India only 13% of the projects have actually received the MNRE subsidy. The subsidy is not used and in its current form only serves to delay decision-making by potential customers. It should be fundamentally reformed or abolished. For many industrial and commercial consumers, solar is already viable without a subsidy. Based on our market model, we project that the Indian rooftop solar market will reach 1.5 GW of cumulative installed capacity by 2018. This is a fast growth from the current 285 MW, but still only a fraction of the potential. To accelerate the market even further, our recommendation is that government should announce better incentive mechanisms to ensure quality of installations, additionally a plant performance linked incentive such as generation based incentive (GBI) can be deliberated.
Engelmeier elaborates: Also, MNRE could revamp the accelerated depreciation benefit by decoupling the tax incentive from investment in the same way that, say a carbon credit or a renewable energy certificate can be traded independently of the power output. Then, the tax benefit could be generated by one party (say, a professional rooftop investor) and sold to another party that wants to use it to reduce its tax burden. This approach has been very successful in the US. It helps transform the market from one driven by one-off investors into one driven by institutional capital, where professional approach, competition and reasonable return expectations help make rooftop solar power a scalable business and a mainstream choice for end-customers.
For any media queries please reach out to:
Meenakshi
BRIDGE TO INDIA
M: + 91 8376800831
E: meenakshi.sarkar@bridgetoindia.com
About BRIDGE TO INDIA
BRIDGE TO INDIA was founded in 2008 by Tobias Engelmeier with the objective of bringing international renewable technology and project development expertise to India. The company has grown significantly since then to become a leading consulting services and knowledge provider in the Indian renewable market. Our Consulting team has worked on numerous assignments for top-tier clients (GE, Siemens, Bosch, REC, Tata Power Solar, Greenpeace, to name a few), while the Market Intelligence business produces regular market leading research and has published several thought leadership pieces shaping the growth of the renewables sector in India. Our Projects business vision is to make locally produced clean energy a mainstream choice for large-scale commercial, industrial and institutional users.
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