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India’s Solar Power Capacity grows at an anaemic pace as Gujarat slows down

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Indian Solar Slows Down

India’s solar power potential is not being realized despite the country possessing some of the most ideal conditions for growth in solar power. India will install around 1 GW this year and if everything goes right then 2 GW next year. This may sound great but you have to compare this to the 10 GW that China will install this year. Also the 2 GW will come into being only if the long delayed solar thermal power projects are actually built after long delays. We at greenworldinvetor have long criticized India’s solar power subsidy policy, especially that of giving almost 50% of the subsidies to the solar thermal technology. This technology has lost out to the solar PV technology due to its much lower costs, faster installation time and scalability. However, the dumb Indian bureaucrats continue to pour millions of dollars in supporting a dead technology.

While some states have seen the light in supporting rooftop solar installations, the central Indian government continues to be enamored of large solar ground farms. These solar farms benefit big corporates and their cost advantage over rooftop solar installations is suspect given the transmission and land costs involved. India has a massive power deficit and lacks fossil fuels of all kinds. Many power plants remain shut as they do not have fuel. Solar power costs are also decreasing rapidly, thanks to falling solar equipment costs. It is the only energy for showing a sharp declining trend in costs. However, the Indian government and most state governments do not have a clear vision on promoting solar energy. The free market is doing more to promote the use of solar panels and cells. The cheap cost of solar panels has made it possible for the poor to buy solar products for their daily needs.

Indicating better sectoral prospects, India is projected to see a solar power generation capacity addition of 1,750 MW next year, says a report.

Noting that new solar installations so far this year have been around 900 MW, Mercom Capital Group today said that India is not likely to register any significant year-over-year growth for 2013. However, during this period, global solar market is estimated to see 20 per cent growth.

Source: Economic Times


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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