India will add solar power capacity of 48-50 GW between fiscals 2019 and 2023. The total installed solar capacity will reach 70 GW by FY 2023. Of this, 8 GW will come from rooftop projects, led by high industrial and commercial tariffs and declining levelised cost of energy for solar rooftop projects—according to a report by ratings agency Crisil Research.
While commissioning is expected to slow down in FY19 due to the impact of the safeguard duty and Goods and Services Tax (GST) issues, FY20 is weak due to delay in auction as several tenders got delayed/cancelled. However, FY20 onwards, additions are expected to pick up due to several factors: Subsiding of/removal of the safeguard duty easing cost pressures; commissioning of capacities auctioned with amended commissioning schedules of 21-24 months coupled with tenders now allocated with schedules of 15-18 months and aggressive tendering expected prior to FY22 (which is milestone year), said the report.
However, consistent regulatory support, adequate land availability, timely implementation of grid infrastructure, and the ability of players to raise low cost funds are key risks which constrain the outlook, it added. Read More