Indian solar power equipment market to cross $4 bn by 2020: Report

CANADA, June 29: India is forecast to witness robust growth in solar power generation capacity due to rising focus of the government towards sustainable energy generation. Availability of abundant sunshine throughout the year makes the country an ideal location for solar power generation. Rapid population growth and increasing urbanisation and industrialisation is driving demand for energy, traditionally met by coal and crude oil. However, growing shift towards renewable sources of energy and favorable government initiatives have increased the share of solar power in the country's total energy generation mix. Under the Jawaharlal Nehru National Solar Mission (JNNSM), a capacity addition of 20,000 MW has been envisaged to be achieved by 2022. This would require production and usage of solar cells and modules for power generation. The second phase of JNNSM solar development program mandates 50 percent local equipment sourcing, which is expected to boost the country's solar equipment market. According to a TechSci Research report "India Solar Power Equipment Market Forecast & Opportunities, 2020", solar equipment market in India is projected to surpass $4 billion by 2020. Prices of solar panels declined by 19 percent in 2013 and by 12 percent in 2014 due to technology advancements and improvements in manufacturing processes, thereby making them cheaper. In the past, solar equipment industry confronted various challenges such as poor raw material supply, underdeveloped supply chains and limited access to low cost financing. However, rising government investments in the sector, increasing technological advancements and growing environmental concerns are expected to boost solar equipment market over the next five years. "With rising demand for solar equipment, many domestic players such as Indo solar, Tata Power Solar, Moser Baer India Ltd and Websol Energy Systems are offering cost-effective and high efficiency solar equipment with low system cost per KW. Increasing competition in the market is resulting in considerable average selling price declines of equipment. Additionally, government support in the form of favorable policies, subsidies and tax incentives are expected have a significant positive impact on the market in the ensuing years.", said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.