India’s C&I Solar Capacity to Grow by 47% This Year

  • C&I segment to see 47% growth in India this year.
  • The growth will be boosted by favourable policies that will bring down solar prices in India.
  • Increased push for EVs will see companies install solar for vehicle charging.

According to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research, commercial and industrial (C&I) consumers in India will likely increase rooftop solar energy capacity by 47 per cent 2021 compared to last year. As a result, C&I consumers are expected to install up to 1,875MW of new rooftop solar capacity in 2021.

This increase is set to be aided by new solar technologies that include larger-sized, wafer-based modules with a higher power output of over 500 kWp, bifacial modules capable of generating electricity from both sides of the panel, battery storage and integrated solar PV, and vehicle charging. The growth will also be boosted by increased efforts to rebound from the slowdown in installations due to the pandemic last year.

The report titled; Emerging Technology Trends in the C&I Rooftop Solar Market in India notes that “the pandemic has increased the price sensitivity of C&I consumers who already pay higher tariffs to cross-subsidise agricultural and residential consumers.” As a result, these consumers are looking to save money on energy costs.

The report notes that new initiatives such as the government’s new Production Linked Incentive (PLI) scheme that aims to boost domestic solar manufacturing will likely lead to a drop in the price of solar components.

The report also adds that government policies that support the adoption of EVs will require companies to install onsite solar projects to provide chargers with clean energy. The report also notes that the C&I segment makes up about 75 per cent of India’s rooftop solar market.

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