According to the report, rooftop installations declined for the first time in five years. Major reasons being the economic slowdown last year, along with liquidity issues in the market following the NBFC crisis which made it extremely difficult for installers to finance rooftop projects
February 20, 2020. By News Bureau
India’s cumulative solar rooftop installations touched about 4.4 gigawatt (GW) at the end of 2019, according to a recent report.
It added that last year large-scale projects accounted for 85 per cent of installations with 6,242 MW and saw a 7 per cent year-on-year (y-o-y) decline. Whereas, rooftop solar projects made up the remaining 15 per cent adding 1,104 MW, a 33 per cent drop y-o-y.
“At the end of 2019, cumulative solar installations reached almost 35.7 GW. Large-scale projects accounted for 31.3 GW, 87.6 per cent, whereas rooftop solar installations accounted for 4.4 GW about 12 per cent,” the research firm said in its CY2019 India Solar Market Update released on Wednesday.
In the fourth quarter of 2019, large-scale solar projects came to 1,593 megawatt (MW), while rooftop solar installations were at 304 MW, an increase of 24.1 per cent compared to 245 MW in the third quarter of 2019.
According to the report, rooftop installations declined for the first time in five years. Major reasons being the economic slowdown last year, along with liquidity issues in the market following the NBFC crisis which made it extremely difficult for installers to finance rooftop projects.
“There are several challenges facing the industry, but a few fixes that could immediately turnaround the sector would be to remove tariff caps in reverse auctions, getting government agencies to make timely payments and facilitate lending to get the solar market moving in the right direction again,” said Raj Prabhu, chief executive officer, Mercom Capital Group.
The report projected a rise in solar installations by 17 per cent y-o-y to about 8.5 GW by the end of 2020 and solar installations in the 65 GW to 70 GW range by 2022.
India installed 7,346 megawatt (MW) of solar power capacity in 2019, down by 12 per cent year-on-year (y-o-y) as compared to 8,338 MW installed in 2018.
Karnataka emerged as the top state for solar energy in 2019 with 1.8 gigawatt (GW), followed by Rajasthan and Tamil Nadu. These three states accounted for almost 70 per cent of solar installations in 2019.
“The demand outlook for 2020 looks better with a stronger project pipeline, and we should see the solar market resume y-o-y growth again. But, a lot will depend on the economy and lending situation getting back on track, the impact of coronavirus, and the outcome of the 20 per cent basic customs duty announced in the recent Budget,” said Prabhu.
The large-scale solar project development pipeline stands at 23.7 GW, with 31.5 GW of projects tendered and pending auction at the end of Q4 2019.
According to the report, the Indian solar market added 1,897 MW in Q4 2019, a 12.8 per cent decrease, compared to 2,177 MW installed in Q3 2019. However, installations were up by 15.6 per cent compared to 1,641 MW installed in Q4 2018.
The government has set a solar installation target of 100 GW by 2022.
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