Rooftop solar lagging: why India will miss its 2022 solar target | IEEFA Skip to main content

Rooftop solar lagging: why India will miss its 2022 solar target

April 12, 2022
Vibhuti Garg and Jyoti Gulia and Akhil Thayillam
Download as PDF

Key Findings

India is projected to miss its target for 2022 of having 100GW of installed solar capacity by about 27%, largely due to slow uptake of rooftop solar.

On the current trajectory, India’s solar target of 300GW by 2030 will be off the mark by about 86GW.

Headwinds ranging from pandemic-induced supply chain disruption to deeply rooted policy restrictions have impeded the growth of India’s rooftop solar and open access (offsite solar power) installations.

This report proposes short- and long-term measures to get India back on track to meet solar targets.

Executive Summary

India is projected to miss its target for 2022 of having 100 gigawatts (GW) of installed solar capacity by ~27%.

This report anticipates that by December 2022 there will be a shortfall of 25GW from the 40GW rooftop solar target, and 1.8GW from the 60GW utility-scale solar target, indicating the need for a concerted effort towards expanding rooftop solar.

On the current trajectory, India’s solar target of 300GW by 2030 will be off the mark by about 86GW.

The anticipated 27GW shortfall from the 2022 solar target can be attributed to multiple challenges including regulatory roadblocks; net metering limits; the twin burdens of basic customs duty (BCD) on imported cells and modules and issues with the Approved List of Models and Manufacturers (ALMM); unsigned power supply agreements (PSAs) and banking restrictions; financing issues plus delays in or rejection of open access (OA) approval grants; and the unpredictability of future OA charges.

The report proposes short- and long-term measures to get India back on track to meet solar targets.

Short- term

  • Uniform policies to apply nationally for at least the next five years.
  • Consistent regulations for net metering and banking facilities, also to apply nationally.
  • Restrictions on banking revoked at least until rooftop and OA state targets have been achieved.

Long-term

  • Stricter enforcement of the renewable purchase obligation (RPO).
  • Improved financial health, and potentially privatisation, of distribution companies (discoms).
  • Reduced cross-subsidy surcharge (CSS) for commercial and industrial (C&I) consumers.
  • A capital subsidy for Battery Energy Storage Systems (BESS).

Vibhuti Garg

Vibhuti Garg is an energy economist and IEEFA Director, South Asia. Vibhuti’s focus is on promoting sustainable development through influencing policy intervention on energy pricing, adoption of new technologies, subsidy reforms, enhancing clean energy access, access to capital and private participation in various areas of the energy sector. 

Go to Profile

Jyoti Gulia

Jyoti Gulia is the Founder of JMK Research. Jyoti has about 15 years of rich experience in the Indian renewable sector. Her core expertise includes policy and regulatory advocacy, assessing market trends, and advising companies on their business strategy. [email protected]

Go to Profile

Akhil Thayillam

Akhil Thayillam is a Senior Research Associate at JMK Research. Akhil is a renewable sector enthusiast with experience in tracking new sector trends as well as policy and regulatory developments.

Go to Profile

Join our newsletter

Keep up to date with all the latest from IEEFA