India May Not Reach Its Ambitious 100 Gw Solar Power Target By 2022: Crisil

Crisil in a report published in Mint said it expected an additional 56-58GW of solar capacity addition between FY19 and FY23. Currently, India has a capacity to generate 21.65 GW of solar power.

7.3 GW is under construction, based on already allocated schemes, another 1.7 GW is expected to be tendered and allocated over FY19.

Crisil stated that a safeguard duty on solar modules from China and Malaysia, which took effect this month and will continue for two years, is expected to slow capacity addition.

Industry experts believe safeguard duty will raise capital costs by 15-20 percent.

Rahul Prithiani, director, Crisil said India’s solar mission target for the rooftop segment of 40 GW by 2022 is the key concern.

Crisil expects this figure to be not more than 8 GW by 2023 because the cost of solar power at rooftops is expected to be far higher than from the grid.