30 Aug Q2 of 2018: India’s Solar Market Update
Solar power in India is a fast developing industry. India’s renewable energy capacity stands at 69,685 MW at the end of FY18. India is also ranked fourth in the global renewable ranking, trailing China, the US, and Germany. The target is to achieve 1,75,000 MW by FY22.
Below are the highlights of India’s solar energy position in Quarter 2 of 2018.
- India’s Solar Installations decline to 1.6 GW in Q2 2018 making it at the lowest level since Q1, 2017.
- Solar installations in Q2 2018 is 1,599 MW, a 52 percent decrease compared to 3,344 MW installed in Q1 2018.
- Cumulative solar installed capacity in India is 24.6 GW at the end of Q2 2018 with large-scale solar projects accounting for 90 percent and rooftop solar making up the remaining 10 percent.
- Large-scale project costs declined below ₹4 crore (~$572,473)/MW for the first time.
- Renewables comprise ~21 percent of India’s total installed capacity, with solar accounting for ~7 percent.
* Q2, 2018 up by 84% compared to Q2, 2017 and up by 6% compared to Q1, 2018.
The low solar power tariffs trend, coupled with uncertainties related to proposed import duties on solar components, and module price fluctuations are the main reasons behind the solar installation decline in Q2.