India’s record-breaking growth in producing solar energy has made the country a solar market in this year. The country is a top producer for panel producing regions struggling with their minimal price level.
As predicted by BNEF (Bloomberg New Energy Finance) India, on the other hand, it is expected to double their solar as last year, even more than Japan, the former leader in producing solar power. The world’s largest renewable source, China has recorded a dip in their solar growth after reaching highest in the year 2016.
With the support of Narendra Modi’s clean-energy goals, India has registered a massive growth and will be backing China’s solar cells and module manufacturers like Hanwha Q Cells Co, and Trina Solar Ltd. India also became a top importer of solar cells and different modules from China and boycotted Japan for 3 out of 10 months. This trend will be continued this year too, as said by WNEF.
The BNEF executive also said, “India will account for 10 to 13% of global new build in the next couple of years, and its market fluctuation will have a substantial impact on the short-term supply-demand relationship and therefore the pricing environment”. India and Latin America are also among the top market players for Solar panels.
India, the world’s second populated country, is expected to add 8.9 GW of solar energy this year, twice of what was recorded in 2016 – 4.6 GW. Japan’s solar capacity is expected to decrease from 8.9GW to 6GW, and China is projected to drop from 28.6 to 21.6GW.
India is aiming to install at least 100 GW of capacity by 2022, under Modi’s goal for clean energy. Also, China is expected to scale its target to 105 GW by 2020, under their five-year 13th plan for stagnating electricity demands.
As said by BNEF chairman, the most disastrous development of 2016 was that both China and Japan fell from their peak in solar investments.
Japan’s solar power capacity in 2016 is estimated at 8.6GW – 9.4GW, considerably lower than 2015. This is due to a generous increase in tariffs.
India has adopted auction system since 2010 for generating and building solar power plants. China and Japan are going to take this system to counter their solar needs.
According to BNEF reports, Japan’s solar installs peaked a record in 2015 after they added 11.5GW of capacity.
China is reducing all their tariffs to encourage the auction system to be lower and favor them in reaching the top.