Labour shortages and ‘restrictive’ work practices holding up India solar rebound: Bridge to India

Facebook
Twitter
LinkedIn
Reddit
Email
Image: HHV Technologies.

Labour shortages and “restrictive” work practices caused by the ongoing COVID-19 pandemic have caused solar deployment to fall by nearly two-thirds (64%) sequentially, with just 351MW having been installed in Q2 2020.

That is according to consultancy Bridge to India, whose prediction of 500MW of new PV in Q2 proved too optimistic given the extended lockdown and consequent effect on movement of people and goods.

Bridge to India's figure of 351MW is the most optimistic projection issued so far, with other recent evaluations of India’s Q2 performance having reinforced how modest new installations were in the three months to the end of June. JMK Research & Analytics noted the country deployed 304MW, while Mercom India Research suggested it was just 205MW – a figure the consultancy said was the lowest quarterly deployment total since 2014.

Utility-scale PV made up 211MW of capacity addition while new rooftop solar, which is struggling with a dip in demand and payment delays, added only 140MW. For H2 2020, Bridge to India is estimating 600MW of new rooftop capacity additions, a 23% decrease on the same period last year.

Some 5,053MW of solar tenders were issued in India during Q2 – consisting of ten utility-scale solar parks, three floating solar installations and one solar-wind hybrid project – which was down 65% sequentially.

Bridge of India is forecasting that activity will gather pace in the coming quarters, with an estimated 4,720MW to be commissioned in H2 2020, bringing total commissioned capacity for 2020 to 5,620MW. Still, that figure would represent the lowest capacity addition in three years.

Lower equipment prices and lifting of lockdown-related restrictions “should help developers bounce back with higher capacity addition in 2021”, noted the consultancy.

On the policy front, India’s government has looked to protect the country’s solar equipment manufacturing sector through the extension of safeguard duty for another year. It is estimated India imports 80% of the components used in solar developments from China.

Trade body All India Solar Industries Association warned the government needs to go further and that the safeguard duty is not enough on its own to safeguard the future of local manufacturers, with chairman Hitesh Doshi calling on policymakers to immediately put in place a basic customs duty of 50% on solar equipment.

7 September 2022
The demand for rooftop solar PV is soaring, driven by falling costs of the technology against energy crises that are gripping countries globally. But while an increasing number of households turn to solar to generate their own electricity, there is now a need for more specialist equipment, technologies and services to ensure the solar transition can reach as many customers as possible. Delivering these is now a major challenge for rooftop solar installers. This webinar will analyse the characteristics of the rooftop solar market, discussing how the products, logistics, installation and servicing of solar systems has evolved in line with consumer demands.

Read Next

August 12, 2022
REC Solar and its parent company, Reliance Industries, have ramped up recruitment of staff for its India solar manufacturing plant.
August 12, 2022
Yingkou Jinchen Machinery has an agreement with Indian module maker Waaree to supply it with a 2.5GW high-efficiency module production line
August 11, 2022
The financial adversity of India’s struggling distribution companies (Discoms) has been reflected in a significant downgrading in the latest rankings by the Ministry of Power, giving yet more concern for renewable energy players
August 11, 2022
Finlay Colville, Solar Media's head of market research, lays out the UK's path to achieving 40GW+ of solar PV by 2030 after rebounding from recent headwinds in its solar sector
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year
PV Tech Premium
August 4, 2022
PV Tech Premium unpicks South Africa's recently unveiled policy measures aimed at tackling the country's energy crisis and boosting renewables deployment.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event