India solar market to grow from 54 MW in 2010 to more than 9 GW by 2016
This is according to a new report, The India Solar Market: Strategy, Players, and Opportunities from GTM Research and Bridge to India
Boston, November 3, 2011 — Over the next five years, India will become an anchor of global solar demand, installing more than 9 GW between 2011 and 2016.
This is according to a new report, The India Solar Market: Strategy, Players, and Opportunities from GTM Research and Bridge to India.
The market's gigawatt-scale emergence will be spurred by the maturing National Solar Mission and a collection of state-level incentives, as well as an influx of expertise from global solar players entering India.
At year-end 2010, India claimed just 54 MW of installed grid-connected solar. However, recent feed-in tariffs allocations from the NSM and the state of Gujarat's Solar Policy promise to increase that installed capacity six-fold to about 365 MW by the end of 2011 and, furthermore, to over 1,100 MW by 2012.
Yet, while solar policy and project pipelines remain robust, developers are facing a number of challenges that threaten forecasted growth. Chief among these threats is project bankability and financing; banks have been reticent to finance a first wave of Indian projects with national- or state-level FITs/power purchase agreements, the majority of which are being promoted by inexperienced Indian developers.
To date, first movers such as SunEdison, juwi solar, AES Solar, Conergy, Gehrlicher Solar, and Enfinity have employed this strategy to enter India, teaming with local developers or EPC providers to gain early market share or build viable project pipelines.
Foreign module manufacturers have also made in-roads, opening initial supply channels in India; included in this group are thin film suppliers, First Solar, Solar Frontier and Abound Solar, as well as crystalline-silicon manufacturers, Trina Solar and Suntech.