Chinese Hold Over 80% Of The Total Market Share In Indian Solar Manufacturing

India's total installed solar capacity grew by over 84 per cent in the last four quarters, with an installed capacity addition of 7.5 GW, according to the report by Consultancy Bridge to India. Citing the minor development in the domestic solar module manufacturing capacity, the top three solar module suppliers, however, remain Chinese.

Trina Solar (16.6 per cent market share), JA Solar (9.2 per cent) and Canadian Solar (8.7 per cent) topped the module supplier list, with all of them gaining significant market share over last year. On the domestic manufacturing side, Waaree was the biggest manufacturer last year, followed by Vikram Solar and Tata Power Solar.

"There has been a marginal increase in the market share of Indian manufacturers but the Chinese suppliers continue to hold over 80 per cent of the total market share," according to the report.

Greenko and ReNew Power managed to retain the top developers' position on the basis of capacity commissioned during last four quarters with Acme moving up to the third position. Seven project developers in India now have a portfolio greater than 1 GW (both commissioned and pipeline projects).

It is also highlighted that out of the total 7.5 GW added in this period, 57 per cent has come from three southern states - Telangana, Karnataka and Andhra Pradesh. Telangana now ranks number one for commissioned capacity followed by Rajasthan and Andhra Pradesh.

The total utility-scale solar capacity reached 16.2 GW by September 2017 and an additional 10 GW capacity has been allocated to developers and is in various stages of development. With all the development, 62 per cent of India's solar pipeline is now concentrated in four southern states- Karnataka, Tamil Nadu, Andhra Pradesh and Telangana.

However, Vinay Rustagi, Managing Director, Bridge to India, expects the capacity addition to slow down in future to about 5 GW per annum.

"The future looks more subdued - demand for solar power is slowing down when tariffs have fallen to a low of Rs 2.42/kWh level making solar power the cheapest new source of power in India. The utility-scale solar capacity addition is expected to slow down to about 5 GW per annum. Consequently, we expect investors to shift their attention to the secondary market, where some large M&A transactions are in the pipeline", says Vinay.

Naina Sood

BW Reporters Naina Sood is a Economics graduate and has done her post graduation in International economics and Trade. She has deep interests in Indian economy and reforms