India has crossed 57.70 GW in 2021-22 up from Solar Power Capacity from 40.08
GW as on 31 March 2021. The trend showed that it is bound to increase in coming
time and may touch 75 GW by March 2023.
India need to increase Solar Power by commissioning more to cross the capacity
of 100 GW by fiscal 2023, increasing it by 25GW as we are behind schedule, to
come at par with Hon. Prime Minister's dream. Which now seems not achievable,
however even if we add 30 GW by year end it will be phenomenal but that too is a
over expectation. And there lies the need to increase rooftop which has grabbed
it own space. It still falls short of the National Solar Mission target by a
But as editor and the keen observer of the industry, I can see things falling in
place and grow at the speed of PM's expectations in another 5 year years from
now. For this "ATMANIRBHART BHARAT", has to be a huge success in Cell
We expect an
additional of another 16 to 18 GW max by year end Which makes the total capacity
to around 75 GW. Far lessor then our Prime Ministers ambition.
Nodal Agency partnered Companies Power plants, has certainly slowed down the
coming up of Plants. Things are not going to be easy even after reaching 75 GW.
That BCD, which comes as part of the AtamaNirbhar Bharat initiative
designed at stimulating domestic manufacturing, was replaced by another set of
regulations which got effective from August 2020 has made the smaller Solar
companies very difficult to survive. Many a small module manufacturers have
closed down due to DCR requirement but DCR on the long run will put India on the
It also comes amidst a push from India's Ministry of New and Renewable Energy to
rekindle domestic renewable manufacturing having witnessed imports struggle with
logistics issues posed by the ongoing Russian-Ukraine war. India counter to
Chinese aggressive posturing is another reason. indigenous manufacturing of cell
& semi conductors augurs well for long term future of solar PV industry in
India. With corporate giants like Ambani/Adani showing interest it may not be
long that India becomes one of the leaders solar energy.
In addition, Union Minister for Power Mr. R K Singh also confirmed that an
approved list of PV manufacturers for use in government-backed solar projects
would be published by the end of this year, having been pushed back from the
original date of April following the onset of the pandemic. While expected, the
news will come as blow to Chinese inverter manufacturers which have come to
dominate India's rooftop solar inverter market.
Softdisk believes that lower the PPP lesser is the possibility of the project
development company to survive, and more importantly the PPP negotiated with
various Governments should revisited and allow higher PPP. The rates such as Rs
2.44 per unit as these will never allow the 500 MW plant to recover its money in
15 years time leave alone profits, by that time maintenance and reduced yield
will become focus area. Already the PPA executed by Uttar Pradesh Govt. was at
2.88 per unit.
India will not be able to achieve its ambitious target of generating 100 GW
Solar Power by 2022. In a report, Softdisk research wing said that in the
best-case scenario, the country will touch 75GW, against the current capacity of
57.70 GW as on March 2022.
"We are more confident that projects with the Solar Energy Corp. of India (SECI)
will be executed faster; their projects are better able to deal with evacuation
concerns (i.e. connection to the national grid)," said Salil Chatterjee, head,
Softdisk Research. SECI also cancelled 950 MW of solar tenders in July, unhappy
with the tariffs that developers were bidding.
"The government must be live with the outcome of bid price; it should go ahead
with these projects even if tariffs are higher than what they like," Salil said.
"It's hard to say which tariff is unreasonable; it's hard to predict whether
module prices will go up or down in the future.
Since 1st April 2022 - 40% BCD on solar modules and 25% BCD on solar cells will
be applicable. Now how under development projects will be completed with out
escalation in price.
This will ensure that PM announces another ambition plan to increase by 50GW i.e
to have 150GW by 31st March 2025, which may ensure that this 125 GW (1st
Ambition) at least gets fulfilled & crossed.
Which Softdisk believes is certainly possible but for this indigenous cell
manufacturing has to increase.
Solar PV industry analysts and project developers in India feel that imposing
BCD will be a negative step in the overall goal for de-carbonizing the energy
sector in India, where tremendous progress has been made in the last four years.
Now here are the big question what is more important for our Country: Economy of
the Country or Environment?
Modi Ji is absolutely right when he ask for compensation for destroying the
environment and getting developed and today shouting green-green.
They developed their countries destroying the environment and now as we develop
they say we are destroying the environment.
It is similar to one day Deepawali celebrations will pollute the environment
while over 9 month of war between Russia & Ukraine is all green.
Levying such duties will drastically affect solar power developers and capacity
addition targets set by the government of India. We have been advocating for
quite some time that there should be a level-playing field in terms of uniform
taxation and levy of duty for every manufacturer in the country, including both
who are inside SEZ and DTA, says Salil.
Softdisk believes that if a measure promotes domestic manufacturing then we
should definitely do that. When we talk about domestic manufacturing, we should
also keep in mind to be independent of imports not just on modules but cells,
wafers, and ingots, and device strategies to strengthen domestic supply chains
for the same. Vertical integration is essential and should be definitely done.
Some reports suggest that renewable energy projects already commissioned might
not be able to take advantage of the 'grandfather clause' to import any solar
equipment from China. Since the grandfathering was announced, we have collected
information of all the projects that are in the pipeline. So, we have collected
information on 111 projects with 30-GW capacity in the pipeline. Immediately
after the announcement came six months back, we stood up with the Government for
'grandfathering' because we believe that there are still a lot of pending claims
for the 'change in law' compensations for safeguard duty and GST from 2017 and
2018. Those compensations have not been awarded. Recently the Minister in
statement said that it is not possible to 'grandfather'.
Secondly, even though 'grandfathering' is not possible then the ministry should
consider a mode of compensation mechanism which would not get dragged over time
and the claims by developers are compensated as early as possible.
The minister has said that it will be in line with the coal-based cess where, at
present based on the increase in the coal cess or surcharge, the generators are
able to claim the increase directly through the intermediary and they will get a
post-facto regulatory approval. In principle it looks fine, provided it is
implemented in this form where the developers can get benefit right from day
The reason behind it is that we have an ambitious renewable energy target and it
requires a lot of capital. And when we have BCD, it is the direct equity of a
company that is going into paying these additional costs. That means that this
money, which was supposed to go into new projects, is going in paying these
duties which is not good for our target and solar proliferation. So, there
should be enough liquidity with the industry both in terms of payments
receivables from the discoms as well as these compensations that come up due to
certain 'change in law' so that the industry does not suffer a cash crunch.
There is certainly a delay in payments from discoms.
If it is in the interest of the country or if it is taking us in the path of
energy security, while we are in transition phase to new energy forms, then no
one will be against such trade barriers. However, if there are no enabling
policies in place for promoting domestic manufacturing, then BCD might not do
justice for providing domestic manufacturing as they should.
We at Softdisk personally seen & met both type of suffers.
More & more companies are moving towards cell manufacturing, a few have spelt
out their plans but most have kept them in wraps.
On the smaller manufacturers front Roof -Top's have taken the urbanized society,
SME & corporate sector by storm.
Schemes such as KUSUM if fully implemented, it will help uptake of about 25,000
MW domestically-made cells and modules. That is a huge demand, almost twice the
module demand of our current capacity. This augure very well for the country and
both small & big manufacturers & EPC companies.
This is aimed at creating a platform to bring domestic and foreign investors,
and Indian industry together along with providing information related to
manufacturing incentives in every state of the country. Exporting renewable
power among states should be welcomed as it is a very good trend and it will
come up more in RE rich states.This will result in states not capping the
On the global front, we already have the International Solar Alliance (ISA),
which over 140 country have joined now, and we at Softdisk believe that the ISA
and its programmes will be a good arena for taking Indian businesses into
countries where we did not have any chance to penetrate.
All said and & done Softdisk believes that Govt. should take all positive step
to help companies setup Solar Cell Manufacturing facilities on large scale. It
will require very high end players to accomplish such projects independently,
sops from the Govt. will be welcome.
The solar energy generation in terms of installed Solar PV power generations
systems have been listed.
However potential in a specific area can be assessed based on factors like
availability of land, solar radiation etc. The National Institute of Solar
Energy (NISE), an apex institute of Ministry of New & Renewable Energy (MNRE),
has estimated the potential of solar power in the country to be around 750 Gwp.
However, India has just reached an aggregate installed capacity of
grid-interactive solar energy at 57.70 GW as of 31st March, 2022.
The top ten states in terms of the installed power generation in India along
with their installed s potential of power generation capacity on 31st March
2022 are as follows :
Rajasthan are in No 1 position in the list of states with largest installed
base till 31st March 2022, its total installed grid-connected solar energy
generation capacity stood at 14454.70 (14.4GW)up from 5,732.58 MW (or 5.7 GW
approx) as on March 31, 2021. Thanks mainly to 3rd & 4th phase completion of
Bhadla Solar park in, Jodhpur. It now becomes the largest solar power plant
in India. In recent times, the state has moved ahead with a more aggressive
solar expansion plan, ensuring it remains a key contributor to the national
goal of 100 GW solar by 2022. With the highest solar energy production in
the country. It is having an aggregate solar power potential of 142.31
gigawatts (GW). Their will be many first's to its credit in the coming years
as not even 10% of its potential has been realized yet.
Gujarat have moved to 2 position in the list of states with large installed
base till 31st March 2022 with a total installed capacity of 7,806.80 MW (or
7.8 GW) , up from 4,430.82 MW (or 4.4 GW) as on March 31, 2021. Major
contributors to the capacity increase includes a Solar Smart City Village at
Modhera, a first of its kind initiative any where in the world where every
house hold is being powered by solar power. Also PM recently laid the
foundation stone of 30 GW of solar power plant at Kutch just 100 KM away
from Pakistan border. Its total potential solar energy generation capacity
is calculated at 35.77 GW.
Karnataka are in No 3 position in the list of states with installed base of
7,597.92 MW (or 7.6 GW) as on March 31, 2022 till 31st March 2022,
Karnataka's cumulative installed grid-connected solar power generation
capacity too grew significantly from 7,355.17 MW (or 7.35 GW) as on March
31, 2021. Karnataka has performed well in terms of installation as compared
to all the other states having a higher potential of solar energy
generation. Karnataka's total estimated solar energy generation capacity is
close to 24.70 Gwp.
Tamilnadu are in No 4 position in the list of states with fourth largest
installed base till 31st March 2022, its total installed solar energy
generation capacity stood at 5,690.79 MW (or 5.6 GW approx) as on March 31,
2022. Up from 4,475.21 MW (or 4.4 GW approx) as on March 31, 2021.
In recent times, the state has moved ahead with a more motivated solar
expansion plan, ensuring it remains a key contributor to the national goal
of 100 GW solar by 2022 end, which though may not be met. It is having an
aggregate solar power potential of 140.23 gigawatts (Gwp).
Telangana are in No 5 position in the list of states with large installed
base of 4,621.07 MW (or 4.6 GW) at the end of March 2022, up from 3,953.12
MW (or 3.96 GW) at the end of March 2021. With its high level of
industrialization, this Indian state has the potential to be a game-changer
for the entire energy mix for the country. With its contributions to solar
energy production in the country. Its aggregate solar power potential
capacity is calculated at 35.20 Gwp.
6. Andhra Pradesh
Andhra Pradesh are in No 6 position in the list of states with large
installed base with total installed solar energy generation capacity having
reached 4,390.48 MW (or 4.3 GW) as on March 31, 2022 up from 4,203.00 MW (or
4.2 GW) as on March 31, 2021. If there were not policy-related hurdles in
the recent past these numbers could be much higher.
Its aggregate solar power potential is estimated at 38.44 Gwp.
Maharashtra are in No 7 position in the list of states with large installed
base of 2,753.30 MW (or 2.7 GW) at the end of March 2022 up from 2,289.97 MW
(or 2.3 GW) at the end of March 2021. With its high level of
industrialization, this central Indian state has the potential to be a top
level energy provider for the country. Its aggregate solar power potential
capacity is calculated at 64.32 Gwp. This shows that there is a huge
potential awaiting to be tapped as currently not even 4% of the state's
potential is being tapped.
8. Madhya Pradesh
Madhya Pradesh are in No 8 position in the list of states with large
installed base of solar power generation touched 2,746.27 MW (or over 2.7 GW)
till 31st March 2022 the state's up from 2,463.22 MW (or over 2.4 GW) While,
Madhya Pradesh has done more installations as compared to Maharashtra but
its only in numbers not in capacity thanks to the progress of its massive
REWA Solar Park. However, the state's recent signing up for more thermal
projects will definitely disappoint those expecting better things from the
state. With its contributions to solar energy production in the country. It
is here we expect the center to intervene & direct the state, but having
more agricultural & forest area must have been the reason. Its total solar
energy generation capacity is estimated at 61.66 Gwp.
9. Uttar Pradesh
Uttar Pradesh are in No 9 position in the list of states with large
installed base of solar energy capacity touching 2,244.56 MW (or nearly 2.2
GW) at the end of March 2022 up from 1,172.50 MW (or nearly 1.1 GW) at the
end of March 2021. Uttar Pradesh has also picked up the pace and is
targeting now over 10 GW of renewable energy capacity addition including
solar in the state. The state has a tough battle ahead & a growth under the
current government has been stupendous. It's aggregate estimated solar
energy generation capacity stood at 22.83 Gwp.
Punjab are in No 10 position in the list of states with large installed base
of 1,117.99 MW (1.1 GW) at the end of March 2022 up from 9,59.50 MW as on
March 2021. With its high level of industrialization & Agro based industry,
this northern Indian state has the potential to be a big contributor for the
energy mix with its contributions to solar energy production in the country.
Its aggregate solar power potential capacity is calculated at 20.05 GW.