Low price panels from China
The Indian solar power market is expected to post more than 38% CAGR during 2019-2023, according to a research report which sees India importing cheaper solar panels from China.
A key driver for the Indian solar power market will be the favorable government regulations, said the report by Technavio, a global technology research and advisory company.
The governments worldwide have been supporting the adoption of solar energy by offering incentives, subsidies, and tax benefits to producers and consumers, it pointed out.
To achieve its carbon emission targets and decrease its dependence on fossil fuels, India is gradually adopting solar energy. Such incentives and solar capacity targets are encouraging many investors to invest in solar power projects that are driving the growth of the solar power market in India, said the report.
As per Technavio, the declining costs of solar energy will have a positive impact on the market and contribute to its growth significantly over the forecast period.
High cost and intermittency are significant factors that have affected the adoption of renewable sources of energy in the past. Energy storage integration can overcome the intermittent nature of solar energy. This will assist in the increased adoption of renewable energy in hybrid systems. In India, a gradual decrease in renewable energy prices is being witnessed.
China
“India is expected to import solar panels from China at significantly low prices as the country is a potential market for solar power. This will result in an increased demand for solar power among renewables and promote the sales of solar power systems in India.
“Thus, the declining cost of solar energy is anticipated to drive the growth of the solar power market in India over the next five years,” said the report.
The utility segment held the largest solar power market share in India in 2018, accounting for over 87% of the market. This end-user segment is expected to dominate the market throughout the forecast period.
The grid-connected segment led the market in 2018 with approximately 97% of the market share. This application segment is expected to dominate the market throughout the forecast period. fiinews.com
