In FY16, a total of INR42,000 crore investments were made in to the clean energy projects

India: According to the Ministry of New and Renewable Energy (MNRE), a total investment of INR42,000 crore were allocated for renewable energy projects during FY16. Madhya Pradesh has the maximum share of the investments with INR8,867 crore, followed by Tamil Nadu (INR6,346.2 crore) and Rajasthan (INR6,058.68 crore). As per the Central Electricity Authority (CEA), the share of renewable energy in the total energy mix was around 7.16% during 2014-15.

TechSci Research depicts that the investment in clean energy have increased the solar energy share in the country and it would also create huge demand for solar power equipment within the country. However, growing shift towards renewable sources of energy and favorable government initiatives have increased the share of solar power in the country’s total energy generation mix. Under the Jawaharlal Nehru National Solar Mission (JNNSM), a capacity addition of 20,000 MW has been envisaged to be achieved by 2022. This would require production and usage of solar cells and modules for power generation. The second phase of JNNSM solar development program mandates 50% local equipment sourcing, which is expected to further, boost the country’s solar equipment market.

According to a recently published TechSci Research report “India Solar Power Equipment Market Forecast and Opportunities, 2020”, solar equipment market in India is projected to surpass USD4 billion by 2020. Prices of solar panels declined by 19% in 2013 and by 12% in 2014 due to technology advancements and improvements in manufacturing processes, thereby making them cheaper. Rising government investments in the sector, increasing technological advancements and growing environmental concerns are expected to boost solar equipment market over the next five years.