Distributed Solar Power Market in India to grow to Rs 100 billion by 2023
Published Date | 2019 February 1
The increasing trends of distributed solar power products in India will propel the Distributed Solar Power Market over the future timeline.India: The market for distributed solar power products markets includes solar lanterns, solar pump sets and other home appliances in India is likely to grow over 2.5 times and reached Rs 10,117 crore by the year 2023, as per a latest study by GOGLA– a global association of off-grid solar power industry. Currently, the market size for distributed solar power products in the country is estimated to be Rs 3,875 crore. This includes sales by private players at Rs 705 crore and the remaining by government-owned entities Over the next five years, the total size of the market is estimated to reach at Rs 10,117 crore including Rs 2,617 crore worth of sales by private sector and Rs 7,500 crore from government side. In the first half of 2018, India represented more than 30 per cent of the overall global distributed standalone solar products sales. The market mainly driven by private players has enabled the sector to push lanterns into the mainstream. According to the study, most of the sales in this sector in future are likely to come from the lanterns with additional services such as radio, mobile charging, etc, and solar home systems. Citing the reason for such growth, the report noted that rising incomes and increasing demand of energy is the key driver. “The Indian government has shifted its focus towards the solar pumping segment. This segment received a fillip in March 2018 with the announcement of the KUSUM scheme wherein a key component is to set-up 1.75 million off-grid solar pumps by 2022 -- nearly ten times the number of pumps currently installed. The KUSUM scheme is currently awaiting final budgetary approval of the cabinet. Given the volumes expected in KUSUM, the price of solar pumps is expected to fall in the next 1-2 years with several established players in the mainstream pump sector likely to enter the segment. According to Vivek Yadav, analyst at BlueWeave Consulting, distributed solar actually means distributed generation of solar power. Solar electricity produced by households using rooftop systems is referred to as ‘distributed solar’. This contrasts with centralized generation where solar electricity is produced by a large plant and then distributed to consumers through a power distribution network (grid). Distributed solar will normally be produced by individual owners for their own use, but any excess power may be sold to the power company. The major factors driving the market are - rapidly increasing adaptation of solar energy and government incentives by various countries to promote renewable energy. Furthermore, rising disposable incomes and increasing demand of renewable energy over limited fossil fuels are the key drivers. Benefits of distributed generation include savings on expensive and polluting conventional power, reduced investments in transmission and distribution infrastructure, meeting renewable purchase requirements, etc., over and above making a positive contribution to combat climate change. According to BlueWeave Consulting’s upcoming report, Titled-“India Distributed Solar Power Generation Market By Production capacity (100KW, 500 KW), By Application (Household, Agriculture & Horticulture), Size and Forecast, 2018-2025”- India Distributed Solar Power market is expected with grow with a significant rate in forecast period, 2018-2025. Owing to rapidly increasing adaptation of solar energy and government incentives by various countries to promote renewable energy. Furthermore, rising disposable incomes and increasing demand of renewable energy over limited fossil fuels are the key drivers. Additionally, benefits of distributed generation include savings on expensive and polluting conventional power, reduced investments in transmission and distribution infrastructure, meeting renewable purchase requirements, etc., over and above making a positive contribution to combat climate change.