Power & Energy Technology

Extensive coverage of the power and energy technology markets, encompassing solar and wind energy, energy storage, smart utilities, and power supplies.


Analyst Insights View All (213)

Dharmendra Kumar, Josefin Berg | January 16, 2017
The introduction of a comprehensive indirect tax regime under the Goods and Services Tax (GST) in India is likely to be delayed from April 2017 to the latest September 2017. Such a delay extends the window to install PV systems at lower tax rates, and will impact the quarterly distribution of India PV demand. In 2016, the government of India announced the introduction the GST in order to make India a common marketplace, with uniform taxes. This new tax regime will subsume all other indirect taxes that are currently applicable in India. A side effect of the GST introduction is that the tax exemptions for PV systems will end. As a result, the Ministry of New and Renewable Energy (MNRE) estimates that the total cost to install for grid-connected solar PV will increase by 12% to 16%. From 16 September 2017, all existing central and state indirect tax laws will void, as defined by the Indian constitution. This means GST must be implemented before the given date.
Frank Xie, Josefin Berg | January 10, 2017
On 27 December 2016, China's National Development and Reform Commission (NDRC) published the new feed-in tariffs (FiT) for PV systems to be installed in 2017. The 13% to 19% reduction compared to 2016 tariff rates are in line with the IHS assumptions for the China PV demand forecast published in the PV Demand Market Tracker on 9 December 2016. As anticipated, the reduction of the FiT is accompanied by a grace period for PV systems that were approved before the end of 2016, but not installed. Such projects have until 30 June 2017 to be installed and connected in order to benefit from the 2016 FiT. As developers rush to install projects under the grace period, IHS forecasts that China will add 15 GW of PV installations in the first half of 2017. At the end of 2016, the National Energy Administration (NEA) announced an increase in the quota allocated for the 2016 FiT by 5 GW. This adds on to the 23 GW quota previously allocated (including poverty alleviation projects). Provinces that gain more than 500 MW of additional 2016 quota will not have any quota allocated for 2017.

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Analysts View All (25)

  • Icon Senior Director, Power & Industrial Technology
    Ash Sharma is the Senior Research Director for the IHS PV Research Group overseeing the entire group’s activities in this field and leading a team of analysts based in the UK, US and China.
  • Icon Senior Research Manager, Solar and Energy Storage
    Sam Wilkinson is a Senior Research Manager for the Solar and Energy Storage Research group at IHS Markit.

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