New installations in the solar sector stood at 2.2 GW during the first five months of 2016, according to Mercom Capital, a global clean energy communications and consulting firm.
“Cumulative solar installations in India crossed the 7.5 GW mark as of May 2016 with about 2.2 GW installed so far this year, more than all of the solar installations in 2015. India’s solar project pipeline has now surpassed 22 GW with about 13 GW under construction and about 9 GW in the request for proposal (RfP) process,” it said.
Government’s strong commitment to renewables and its push towards solar have begun to show results, as solar represented 2.5 per cent of the net installed capacity in India at the end of 2015-16, up from 1.4 per cent a year ago. Also, it was the fastest growing new energy source in the country.
Solar accounted for 17.4 per cent of all renewable energy generation in 2015-16 compared to 10.5 per cent in 2014-15.
“The Indian solar market is growing in size but the question is: is it too much and too fast, as infrastructure and systems have not kept pace with auction announcements. For the sector to move from 2 GW to 10 GW market, work still needs to be done,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
Low bidding levels through reverse auctions have been a major concern at a time when the Indian banking sector is going through its own challenges, which could make borrowing much more difficult in the short-term, it said.