India's rooftop photovoltaic market is gradually improving in the future
2021.Dec
22
After several years of nearly stagnant annual growth, India's rooftop solar energy power system market is showing signs of improvement.
According to a report by the consulting company Bridge To India, the annual growth rate of commercial and home solar systems in India has almost stagnated between 100-200MW before 2020, but it is now gradually increasing.
The report pointed out that the main reason for the expansion of the home solar power system market may be a subsidy program of India's Ministry of New and Renewable Energy (MNRE).
MNRE's goal for the on grid solar system 20kw project is to install 4 GW by December next year. It is currently in the second stage. According to this plan, a 40% subsidy will be provided for the first 3 kW 5Kw solar panel system capacity of the rooftop photovoltaic system, and then a 20% subsidy will be provided up to 10 kW.
The Bridge To India report stated that due to the steady improvement of consumer awareness, affordability, financial feasibility and financing options, as well as the entry of large solar installers, the development of the solar powered market has been promoted.
In addition, the free net metered electricity price in most states is also the reason for the increase in investment in residential rooftop solar. In the 15 states of India, about 90% of households consume 300kwh monthly average marginal electricity price of 7.18 Indian rupees/kwh (0.096 US dollars), and the effective internal rate of return (IRR) of the 3kW system is 8.3%.
Taking into account the national level and bottom-up market analysis, and the current grid electricity prices, demographics, the number of independent houses, and the financial feasibility of residential solar energy. The study predicts that by 2030, the target market for residential solar energy will reach approximately 52 million households, accounting for 10% of urban independent households. Under the assumption that the system cost will drop by 5% per year and the grid electricity price will drop by 3% per year, by 2030, the residential photovoltaic power generation capacity will reach 16.2GW.
It is estimated that as of June 2021, only about 0.4% of independent urban households (400,000) in India’s thousands of households have installed rooftop solar, that is, about 1292MW of residential rooftop photovoltaic. This only accounts for 17% of the total rooftop solar capacity (including commercial and industrial), and only 2.9% of the country's total solar capacity.
