India to hit 1GW rooftop solar this month

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Rooftop sector has grown at a “sizzling 300%” in the last year, said Bridge to India. Credit: The Climate Group

India is forecast to add 700MW of rooftop PV in the year 2016 and cross the cumulative 1GW benchmark this month, according to the latest update from consultancy firm Bridge to India.

The rooftop sector has to date been overshadowed by India’s booming utility-scale segment, with rooftop expected to account for just 15% of total solar installations this year having grown at a “sizzling 300%” in the last year, said Bridge to India. 

Overall, rooftop PV stands at around 10-12% of India's total solar capacity, which is a far smaller percentage than in other major PV markets such as the US (46%), Germany (73%), China (18%) and Australia (97%).

The commercial and industrial segment will also see large capacity additions by the end of September with investors looking to claim 80% accelerated depreciation (AD). This AD is set to reduce to 40% from April 2017 and it is not yet clear if these benefits will still apply to projects from this date.

Bridge to India also understands that the Ministry of Power could soon announce a financial support package for distribution utilities to implement rooftop solar.

MNRE’s plans for rooftop solar on government buildings is helping the rooftop segment, although it is still largely driven by private sector demand. Solar Energy Corporation of India (SECI) has already announced a scheme for allocating 1GW of rooftop solar capacity on various government buildings. Meanwhile, several government departments have recently committed to installing 1.5GW of rooftop solar capacity. Net metering is also reported to be becoming more effective across the country.

Bridge to India noted: “The high growth phase of India’s rooftop solar market has only just begun. This market has got a great potential and it is very encouraging to see the government addressing some of the key challenges.”

The Indian government has maintained its 40GW rooftop solar target by 2022.

The Indian state of Odisha recently said it is targeting 70MW of rooftop solar by 2022 and has already received multiple residential applications. Meanhwile, the State Bank of India (SBI) has signed agreements with the World Bank for a US$625 million facility specifically to support India’s grid-connected rooftop solar programme.

Read Next

June 23, 2021
Solar wafer provider 1366 Technologies is actively exploring manufacturing opportunities in India, seeking a local partner.
June 22, 2021
Finnish utility Fortum has secured a deal to divest two solar projects in India totalling 500MW of capacity to private equity firm Actis.
June 18, 2021
UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) has signed an agreement to invest in a 250MW solar plant in Rajasthan, India
June 16, 2021
EQT infrastructure has announced a takeover bid for Solarpack, which owns approximately 450MW of operational solar PV projects.
June 16, 2021
Azure Power Global saw its cost of deploying solar fall by nearly 19% last year, but the company still recorded a net loss of US$38.1 million in the quarter ending 31 March 2021 despite a year-on-year increase in revenue.
June 7, 2021
India’s rising renewable power capacity could render the country’s 33GW of coal-fired power plants under construction unviable.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021