The slowdown has hit installation of rooftop solar systems. Rooftop solar installations dropped 43.6% in the September quarter from the year-ago period, shows data from Mercom Capital Group, a clean energy communications firm. Installations are down 35.5% in the nine months to September. This follows the general sluggishness in the renewable energy sector. The pace of capacity additions has slowed in both wind and solar installations.
This is a remarkable change. Thanks to falling costs and the growing tariff differential with the power distribution companies (discoms), rooftop solar has been preferred by corporate and commercial customers to reduce electricity costs. The business case still exists. But the economic slowdown and restrictive regulations are sapping the capacity addition momentum.
