Solar Rooftop Market in India Outlook Update (Q1 2020)

In FY 2020, the capacity additions pace for renewable sector in the country was low as compared to erstwhile year-on-year capacities being added from CY 2014. This slowdown was also witnessed in solar rooftop sector with only 297 MW of installation in FY 2020 (From April, 2019 to December, 2019) as compared to 697 MW in FY 2019. Multiple factors were responsible for the slow capacity addition pace with the foremost being the limited availability of funds, policy & regulatory hindrances, and non-uniform grid assimilation. Also, being the election year the Government push was missing and therefore the capacities are expected to register a fillip in near future. However, the outbreak of Coronavirus has hit the global supply chain. PV modules, cells, accessories such as wires, cables and solar inverters are imported from China. These constitute 80% of India’s solar sector imports. This for sure will tumble the expected capacity addition in coming Quarter and therefore, solar rooftop capacity addition will have a reduced pace at least for first two quarters in CY 2020.

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Key Trends

• Rooftop solar (industry) operates in a somewhat ambiguous regulatory environment which makes it easy for discoms to put obstacles in the way of the projects, it is to be seen how these hurdles are eased in order to bring in more investment in the sector.
• The MSME adoption of rooftop solar picked up pace, all thanks to OPEX model, having said so, dwindling credit rating of these MSME’s is a cause of concern for OPEX players. Since, creamy consumer bucket for OPEX players is now emptying, it is imperative for these players to look a notch below for better opportunities.

Key Investments

• Global investors including Brookfield, Omers, Mubadala and Abu Dhabi Investment Authority (ADIA) are in early stage discussions with Tata Power to invest around USD 500 - 600 million (INR 3,500 crore - INR 4,200 crore) in its renewable energy platform.
• The total budget outlay planned under SRISTI scheme is INR 23,450 Crores. Of which, about INR 9000 crores are the total incentives planned for residential sector and nearly INR 14,450 Crores are total incentives capped for discoms for installing 35 GW of solar rooftop systems at social, institutional, govt. sectors, commercial and industrial sector buildings.

Must Buy For

• Central Power Generation Companies
• State Power Generation Companies
• Power Distribution Companies
• Independent Power Producers
• State Electricity Boards
• Project Developers
• EPC Contractors
• Original Equipment Manufacturers
• Renewable Power Developers
• Renewable Developing Agencies
• Government Agencies
• Research firms/ Institutes
• Industry Associations / Technical Consulting Group