Procurement of solar equipment remains a challenge

Procurement of solar equipment remains a challenge for the industry, given the recent changes in policy to boast and incentivize domestic manufacturing, observed Animesh Damani, Managing Partner, Artha Energy Resources. He adds, “If the government maintains consistency in its policies, the industry participants will ensure rampant growth of solar power industry.”

Performance of solar power sector in India
India added around 989 MW of solar power generation capacity in the first quarter (Q1) of 2020 due to the COVID-19 disruption. While in the second quarter India added just 351 MW of solar power generation capacity, expected Q3 numbers for power generation should show a much better improvement. The growth of solar power installation has been impacted due to COVID-19 and we see this as a temporary blip. Given the already auctioned tenders and pace of inquiries in the commercial and industrial (C&I) rooftop solar segment, we are certain to see a dramatic recovery in the coming quarters. Moreover, there have been a few M&As this year keeping the space active and attracting further investments.

Indian solar power sector in 2021
The solar sector will focus on recovering from the setbacks it had this year due to COVID-19 with a lot of projects getting delayed. Procurement of solar equipment remains a challenge for the industry, given the recent changes in policy to boast and incentivize domestic manufacturing. Extension of safeguard duty will have a major impact if followed by an additional basic customs duty. The government needs to work out policies which will enable the solar industry to bounce back next year rather than face new challenges. With the right policy support and in ease in imports, we see the sun shining on the sector.

Breakthrough policy decision that will drive solar power industry growth
I don’t think that policy decision has come yet. Moreover, I would go on to say that if the government maintains consistency in its policies, the industry participants will ensure rampant growth of solar power industry. Here are few of the points that need consistency:
• Consistency in net-metering policies across states

Growth drivers of Artha’s business beyond 2020
We aim to have 80% of our capacity in the next couple of years coming primarily from solar. Our target for 2023 is to develop about 40 MW of assets – both solar and wind with solar making a large chunk of the portfolio. We see the growth in solar continuing to come from C&I rooftop RESCO installations.

How Artha is turning the tide in its favour despite challenges
Before COVID-19 pandemic, most of our business meetings used to take place as physical meetings. With the current situation requiring people to work from homes everything is now happening digitally and we are able to hold 3-4 meetings in a day. A solar installation requires buy-ins from the maintenance, purchase, legal, finance and key management personnel such as C-level executives or Directors. With video conferencing, there has been increased ease in getting all these decision makers in one room at the same time. Hence, turnaround time for decision making has gone up. Productivity from our client side and our side has also increased result of which client enquiries have increased. Hence, we are seeing increased closures than before.

The government needs to work out policies which will enable the solar industry to bounce back next year rather than face new challenges.
Animesh Damani, Managing Partner, Artha Energy Resources