Solar Energy Market In India: Q1 2023 Update And Continued Growth

By Author: Eninrac Team
Total Articles: 14
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The solar energy market in India continues to gain momentum, with the government actively unlocking investment potential in this space. From large standalone utility-scale projects to rooftop installations, mini and micro grids, hybrid renewable energy generation, battery energy storage systems, solar pumps, floating solar, and other decentralized installations, solar energy applications are expanding across the country. The rapid maturation of the solar energy segment in India has been remarkable, considering its previous reliance on a few players focused mainly on small-scale utility projects. However, the cost of solar projects has significantly decreased over the past decade, now averaging between INR 3-4 crores/MW. This has attracted both national and international players, who are nurturing the industry and announcing ambitious capacity expansion targets.

Growing Interest and Solar Installed Capacity:
Developers, Original Equipment Manufacturers (OEMs), Engineering, Procurement, and Construction (EPC) companies, development agencies, financial institutions, and investment banking firms worldwide are closely ...
... observing the solar energy market in India. As a result, the solar installed capacity has witnessed substantial growth, increasing from 2.63 GW in March 2014 to 64 GW in January 2023. This impressive compound annual growth rate of 41% has been made possible due to the supportive policies implemented by the Government of India, which have further accelerated over the past year. These policies aim to boost solar energy generation and other renewables in the country.

Renewable Generation Obligation (RGO) and Business Opportunities:
The recent announcement of the Renewable Generation Obligation (RGO) is a testament to the government's commitment to promoting renewable energy. Under this obligation, any company establishing a coal or lignite-based thermal generating station with a Commercial Operation Date (COD) on or after April 1, 2023, must establish an RGO of at least 40% of the capacity of a coal power plant or procure and supply renewable energy equivalent to that capacity. This requirement also applies to thermal generating stations with a COD between April 1, 2023, and March 31, 2025, and projects commissioned after April 1, 2025. The introduction of RGO signifies a significant business opportunity within the solar energy space.

Market Insights and Eninrac's Role:
To capitalize on this opportunity, industry stakeholders require up-to-date market insights. To address this need, Eninrac has launched a quarterly insight on India's Solar Energy Market. In addition, Eninrac plans to produce a series of cyclic market research studies focusing on the green and new energy market space in India. These initiatives aim to provide the industry with valuable information to support decision-making and take advantage of the evolving solar energy landscape.

Conclusion:
The solar energy market in India is experiencing remarkable growth, with diverse applications ranging from utility-scale projects to decentralized installations. Government support, coupled with declining project costs, has attracted significant interest from national and international players. The introduction of the Renewable Generation Obligation further reinforces the immense business potential within the solar energy sector. By offering up-to-date market insights, Eninrac aims to assist industry stakeholders in tapping into these opportunities and driving the continued growth of the solar energy market in India.