Indian Solar Sector Attracted $100 Million In Q2/2020

Solar Investments To Indian Solar Sector Drop 96% Annually Thanks To Supply Chain Disruptions & Labor Shortage Due To COVID-19: Mercom India Research
07:13 PM (Beijing Time) - 21. August 2020

According to Mercom India Research’s estimates Q2/2020 investments in the Indian solar industry were at the lowest level since Q1/2017. (Source: Mercom India Research)

Key Takeaways

  • COVID-19 pandemic cuts short investments to the Indian solar industry to a historic low during Q2/2020
  • Close to $100 million was raised by the industry in the reporting period, down 90% sequentially and 96% compared to last year
  • Mercom India Research says this decline was due to the pandemic related supply chain disruptions and lack of labor force for project completion

The extent of the COVID-19 pandemic on the Indian solar sector has been severe, as Mercom India Research pointed out in its Q2 2020 India Solar Market Update. Quarterly installations during Q2/2020 in India declined to a historic low of 205 MW (see Only 205 MW PV Installed In India During Q2/2020).

In the same report, Mercom states that investments in the Indian solar sector declined 90% sequentially to around $100 million, and as much as 96% less than Q2/2019. This was the lowest investments ever recorded since Q1/2017, the analysts pointed out while attributing the reasons to supply chain disruptions and lack of labor force for project development. At the same time, there were no manufacturing projects in the quarter.

Cumulative global corporate funding for solar was also down 25% annually during H1/2020 (see $4.5 Billion Total Corporate Solar Funding In H1/2020).

India’s Ministry of New and Renewable Energy (MNRE) recently granted 5-month extension to commission renewable energy projects disrupted due to the pandemic (see 5-Month Extension For RE Project Commissioning In India).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani