The growth rate of Indian Solar Market segment is very exciting so far. This sector made a slow beginning in 2009-10 by adding over 10MW of capacity. Since then, the industry has grown rapidly to about 8.7 GW as of October 2016, adding almost 1.9 GW during the April’16 to October’16 time frame.
In the past year, the solar industry continued to attract investor interest. Apart from many large domestic private cooperation announcing their plans to enter into this segment, a number of foreign companies too, made their presence felt with large targets.
As part of the ambitious target set for this industry in 2015, the central government is aiming to achieve 12 GW of capacity addition during 2016-17. Of this, only 1.9 GW, or 14% of the overall target has been commissioned so far. While it represents the highest ever half-yearly capacity addition. However, capacity addition is likely to pick up pace in second half of the financial year as several projects under state as well as central tenders are due for commissioning.
India represents one of the fastest growing solar markets in the world, the country’s solar industry continues to be dominated by foreign suppliers, mainly Chinese manufacturers that have priced their products aggressively to create intense competition, due to this many Indian manufacturers have gone bankrupt.
However, with the help of government’s Make in India programme, domestic players are looking to re-energies their operations. For eg. Vikram Solar has announced plans to invest INR 4 billion in ramping up its manufacturing capacity to 2 GW by end of 2019. Adani Enterprise also made a significant announcement to invest USD 2 billion in setting up a solar panel and solar photo-voltaic cell manufacturing facility.
· Project Viability and financing risks
· Macroeconomic factors.