India’s solar installation capacity would reach approximately 2,150 MW in 2015 and touch 3,645 MW in 2016, says a quarterly update on the Indian solar market, compiled by global clean energy communications and research firm Mercom Capital Group.
WHERE DO WE STAND?
Year-to-date, solar installations in India stand at 1,652 MW, with cumulative solar installations in the country totaling 4,816 MW.
TENDERING IN PROGRESS:
After several delays, NTPC has begun calling for tenders under the 3,000 MW Phase II Batch 2 Jawaharlal Nehru National Solar Mission. The first auction closed with SunEdison placing winning bid of Rs 4.63/kWh for a 500 MW solar project in Andhra Pradesh. This bid is the lowest in India to date.
Government’s push: 5,500 MW worth of projects due to be auctioned off over the next several months between the NTPC and the Solar Energy Corporation of India (SECI).
Interest rates for solar projects are beginning to fall after the RBI rate cuts with rates in the 11-12% range compared to 13-14% a year ago.
SOLAR PARK FEES: Developers are concerned that solar park fees are much more expensive than originally envisioned and are confident that they can execute at much lower costs if the government sticks to facilitating land.
PAYMENT DELAYS: Some states are facing up to three month payment delays, according to developers and banks. The best states for timely payments currently are Gujarat, Andhra Pradesh, Punjab and Madhya Pradesh.