Connect with us

Hi, what are you looking for?

Make in India logo with a backdrop of solar panels (Source)

Clean Power

India Likely To Add 10.5 Gigawatts Of Solar Power Capacity This Year, Says Mercom

Mercom Capital Group has once again revised its estimates for solar power capacity addition in India for the calendar year 2017. The research group had earlier estimated that more than 9 gigawatts of solar power capacity would be added this year.

Mercom Capital Group has once again revised its estimates for solar power capacity addition in India for the calendar year 2017. The research group had earlier estimated that more than 9 gigawatts of solar power capacity would be added this year.

According to the latest revision, India will likely see an addition of 10.5 gigawatts of solar power capacity in 2017. The jump in installation forecast, Mercom says, is the strong project pipeline that exists at present. This optimistic picture is likely to change next year, in which the company expects only 8 gigawatts of capacity addition.

The 24% decline estimated by Mercom would likely be due to the uncertainty around the implementation of a 5% Goods & Services Tax (GST) on the solar power market, and efforts by many state power utilities to renegotiate the tariffs of solar power projects.

India has already seen 4,102 megawatts of solar power capacity during the first six months of 2017, compared to 3,459 megawatts during the same period last year.

Mercom, however, warns that if market conditions and policy directions change, it may have to revise its projections downward for the current year. Continued lack of clarity on taxation matters under GST regime could jeopardize current and planned construction of power plants.

Another looming threat to project developers is the ongoing anti-dumping investigation by the Directorate General of Anti-Dumping and Allied Duties into Chinese solar module imports. Last month, the Indian government announced that,

it shall undertake anti-dumping investigations into solar modules imported from three countries – China, Taiwan and Malaysia. The investigation shall look at the period between 1 April 2016 and 31 March 2017 however, data for three previous years shall also be looked at.

Cheap Chinese solar modules form an overwhelming part of India’s solar imports, and any negative impact on these imports will have direct consequence on the finances of solar power projects. A 2013 government study had proposed a levy of $0.11 to $0.81 per watt on Chinese modules imported into India. This levy was never implemented though.

States like Uttar Pradesh, Tamil Nadu and Jharkhand are pushing project developers to reduce tariffs for their power projects.

Competitive auctions held in 2015 in Uttar Pradesh saw utility-scale solar power projects allocated to 15 developers in a tariff range of ₹8.60/kWh (13¢/kWh) and ₹7.02/kWh (11¢/kWh). All these projects are now nearing completion and 14 of the 15 developers have been asked to match the lowest bid of ₹7.02/kWh. This means a reduction of up to 18% for the highest successful bidder.

A similar attempt has been made in Tamil Nadu, where lawmakers are pushing Adani Green Energy to revise down its tariff of Rs 7.01/kWh (11.00¢/kWh). Adani Green Energy operates 648 megawatt solar power project in Tamil Nadu, the largest solar project in India.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Electrifying Industrial Heat for Steel, Cement, & More

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like


BYD has partnered with New Delhi based EV cab service Evera. BYD will deliver 100 e6 station wagon EVs. Evera provides app-based cab services...

Clean Power

One of India’s largest renewable energy companies, Tata Power Renewable Energy, has entered into a power purchase agreement for a solar-wind hybrid project.  The...

Clean Power

Indian solar module manufacturer Insolation Solar has secured funding from a World Bank-backed fund for expansion of its production line.  The funding was released...


We've already manufactured an awful lot of steel. There are hundreds of billions of tons of the stuff lying around, much of it obsolete.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.