Solar power generation capacity of 4.8 GW is likely to be added this year in the country as installations are picking up, says a report.
The report by Mercom Capital Group also said that power distribution companies continue to be a “drag” since they are showing reluctance to buy solar energy amid low electricity prices.
“India has reached 2.8 GW in solar installations year-to-date and cumulative installations have reached 8.1 GW as of August 2016,” it said in a release.
As per its forecast, about 4.8 GW of solar energy capacity is expected to be installed in 2016.
According to the global clean energy communications and research firm, the solar project pipeline in India is now approximately 21 GW, with 14 GW under development and 7 GW scheduled to be auctioned.
One GW (Giga Watt) is equal to 1,000 MW (Mega Watt).
“Solar installations and its share of energy generation has picked up speed but distribution companies continue to be a drag on the sector and are showing reluctance to purchase solar in light of low power demand and cheap power availability on the exchanges,” Mercom Capital Group CEO and Co-Founder Raj Prabhu said.
This is an alarming development that the central government should address immediately to restore confidence among developers and investors, he added.