The Indian Solar Pv Market

10243 WordsJun 15, 201541 Pages
The Indian solar PV market has seen significant growth with the installed solar PV capacity, rising from 40 MW to more than 3,000 MW in the last four years. It is also expected that the distributed generation (rooftop Solar PV) at the consumer end will drive solar power capacity additions given the acute power shortages in several states. Role of various stakeholders responsible for implementation of rooftop solar PV projects in India is shown below- During the first phase of the JNNSM from 2010 to 2013, project proponents had to rely on self-financing to kick start projects as they grappled with a lack of experience in financing solar technology on the part of domestic banks. International lenders, with greater exposure to solar technology, led the industry in supporting capacity addition. These lenders were also able to provide financing at rates lower than those offered by domestic banks. Coupled with the falling cost of solar modules, this low-cost financing strengthened the industry by contributing to an impressive drop in the cost of solar energy even as new capacity was added. The viability gap funding (VGF) mechanism employed in the first batch of NSM Phase 2 projects in 2014 allows developers to bid for additional upfront capital required to make the project financially viable at a tariff of Rs 5.45/ kWh. Utilizing a reverse auction to select projects and bundling solar power with the sale of traditional power to lower prices—considered successful during Phase
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