ICRA research sees strong demand outlook for solar energy sector in the long run, aided by favorable regulatory and policy support in place by Central & State Governments. The PV module prices have declined to a great extent owing to the competitive bidding route being adopted by state distribution utilities. According to Girish Kadam, V.P, Corporate Sector Ratings, Even assuming the energy demand growth at 7% on y-o-y basis and solar renewable purchase obligation (RPO) increasing to 2.25% till FY 2022 as against 3.0% as recommended in National Tariff Policy (NTP), the cumulative incremental solar based energy capacity requirements for the period from FY 2016 to FY 2022 is about 19 GW, as per ICRA estimates.