Projects Under State Level Policies Driving Solar Power Installations in India

Release Date: 14-Jan-2013

Solar power has emerged as one of the key renewable sources and presents an exciting opportunity for India. In past few years, the solar PV industry has experienced substantial growth primarily driven by favourable policies of central and state governments to support its development. The Gujarat State Solar Policy and the Centre’s Jawaharlal Nehru National Solar Mission (JNNSM) are at the forefront of solar power development in India. As a result, power generation capacities from solar have increased from 20 MW in FY 2010-11 to nearly 940 MW in FY’2012 and by January 2013 it crossed 1.10 GW. Most of the installed capacity over 800 MW comes from Gujarat. 

Government initiated policies JNNSM and Gujarat State Solar Policy both encourage capacity additions and investments in solar power market. These policies facilitate long-term agreements between solar power project developers and distribution companies (discoms) at cost-reflective preferential tariffs. Additionally, Gujarat solar policy 2009 has resulted in a sharp decline in capital costs of solar products, which drove the rapid expansion of market and major installation in the state.

India though its policy initiatives is trying to achieve 22 GW including 20 GW of grid connected and 2 GW of off-grid installation by 2022. In past few years Indian solar market has witnessed a rapid growth with installation about 300 MW in the year 2011 backed by strong central as well as state level policies. At the state level Gujarat is leading in installation backed by Gujarat Solar Policy 2009 and with a Renewable energy Portfolio Standard (RPS) of 5% for power-distribution companies to be increased to 7% for 2012-2013, out of which 1% is for solar. Other than, Gujarat state the state of Rajasthan has signed 1.5 GW of solar projects with developers in process to achieve target of 10-12 GW at the time horizon of 10 years. Some other states like Tamil Nadu, Andhra Pradesh, Punjab, Jharkhand, Karnataka and Maharashtra are emerging as more prominent future PV installation destination for developers and installers. These states have taken positive steps and introduced their own solar programmes as well as FITs, or are expected to announce their solar ambitions in the course of this year to exploit their solar potential.

For more information visit: India Solar Power Sector Analysis 

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