The country is set to add 5,200 MW solar capacity this fiscal with various states coming out with policies for the sector, CARE Ratings said.
According to a study conducted by the ratings agency, out of total installed renewable energy capacity of 42,750 MW as on March 31, the share of solar energy increased to 15.82 per cent, as against 13.8 per cent in 2014-15.
Various states such as Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana and Uttar Pradesh have come out with policies for awarding solar power projects.
Also, government entities like NTPC and SECI have come out with tenders of large capacities in GW size, including those in solar parks.
“After witnessing record capacity addition of around 3 GW in FY16, 1,000 MW in the first quarter of this fiscal, and bids of around 6,000 MW awarded over the last six months or so, the solar sector is on a strong growth path.
“Nearly 5,200 MW is likely to be added this fiscal and 8,000 MW in FY2016-17,” it said.
Further, the Modi government’s ambitious target of 100,000 MW solar capacity by 2022 has attracted serious interest from various players, domestic as well as overseas.
The sector is witnessing increased participation from large overseas investors and developers, such as ADIA, CLP, EDF, ENEL, Engie, Fortum, First Solar and Goldman Sachs, while large domestic business houses have also laid down ambitious plans for solar capacity addition.
“According to various estimates, India is set to become the fourth largest solar market globally in 2016 behind only to China, USA and Japan, primarily on account of government’s thrust on significantly enhancing the installed solar capacity to 100,000 MW by 2022,” the report said, adding that the recent M&A activity is also reflective of the growing confidence of bigger players in the sector.