Solar EPC Market Gaining Momentum

Sudhakar Singh, Editor

With the rising environmental concerns and the world coming together to reduce carbon emission and move towards green energy, solar power has emerged as one of the foremost options. Realizing its benefits and potential, the industry is increasingly moving towards strengthening energy conservation measure. This in turn is driving the growth of global solar EPC market.

Although the supporting infrastructure needs to catch up with its advancement, the increasing photovoltaic deployments are already making headway. With the necessary restructuring these deployments are expected to witness considerable growth in the near future. Moreover, the support from the government in terms of favorable policies and tax rebates are further going to accelerate the growth of this market. The smart city mission is also a contributor to this growth. Moreover, the increasing FDI in the sector is augmenting the growth. Driven by these factors, the industry witnessed an increase in solar rooftop capacity addition from 38 MW in 2012 to 3855 MW in 2018, expanding at a compound annual growth rate (CAGR) of almost 116 per cent.

Roof-top deployments picking up pace

If we look at the current state of the industry, the solar EPC market has proven its case by showcasing rapid installation of roof-top units across residential and commercial establishments. Roof-top deployments have proved to be beneficial across economies by way of various subsidies and net metering schemes. In addition, the development of micro-grid infrastructure is going to provide the much needed support system to fulfill the increasing energy demand.

The industry is seeing an upsurge in residential deployments with the eased up regulatory guidelines and user friendly technology adoption. With more and more reforms including subsidies, incentives for installations with combined grid and integration of multiple operational technologies, the adoption is only going to pick up pace. Moreover, enforcing building codes and standards across regions to integrate an energy efficient infrastructural environment is further expected to augment the global solar EPC market.

With consumers’ heightened awareness and consciousness about climate change and renewable energy, India’s rooftop solar sector is poised for an accelerated demand. Additionally, the Government’s enabling policies and schemes, affordability of installing solar energy driven by technology advancements is further driving the consumer interest towards solar adoption,” said Saibaba Vutukuri, Chief Executive Officer, Vikram Solar.

As the solar industry gains momentum with PM’s announcement to increase India’s solar capacity target to 100 GW by year 2022, even though it may have a suffered a setback because of the pandemic, it is rising up stronger.