- Mercom counts Indian solar installations to have grown to 7.4 GW in 9M/2021 having grown 335% annually
- During Q3/2021, 2.835 GW was added with a sequential improvement of 14%
- Solar experienced the largest power generation capacity additions in the country that added up to 11.6 GW
- Analysts see 2022 turning out to be one of the best years for solar for India despite challenges including higher prices
Mercom India Research says during the initial 3 quarters of 2021, India installed more than 7.4 GW of new solar PV capacity, representing an annual increase of 335% over 1.73 GW reported during 9M/2020.
To this number, 2.835 GW was deployed in Q3/2021 which, according to Mercom’s latest Q3 2021 India Solar Market Update report, represents an annual increase of 547% and a sequential improvement of 14%. All of this took the country’s total installed solar PV capacity at the end of September 2021 to 46.6 GW with top 10 states accounting for close to 96% of the large-scale installations, led by Rajasthan.
Solar topped the charts accounting for 60% of new power capacity additions during 9M/2021 that were reported at 11.6 GW, followed by thermal power.
The report touches upon the increased module prices that have hit the global supply chain hard of late. Mercom counts Q3/2021 as the 6th consecutive quarter when module prices increased terming it as ‘something not seen in the past 10 years’.
Yet Mercom is quite upbeat about installations growing exponentially in 2022 despite the high prices and uncertainties. Mercom India Research’s parent Mercom Capital Group CEO Raj Prabhu believes India is ‘headed towards one of best years on record, and a complete turnaround from 2021, which was one of the worst years for solar due to COVID-19’ despite supply challenges.
“We expect a strong 2022 despite the high price of components and uncertainties surrounding the Great Indian Bustard related transmission issue in Rajasthan,” explained Prabhu though he does name increase in goods and services tax (GST), power curtailment and payment issues as continued stumbling blocks.
The report can be purchased on Mercom’s website.
Mercom’s 7.4 GW additions for 9M/2021 compare with 6.41 GW that Bridge to India (BTI) says the country installed during the period. Citing higher prices, BTI analysts have downgraded their Q4/2021 forecast to 1.76 GW and expect 1.83 GW to be installed in Q1/2022 (see India Installed 2.2 GW Solar In Q3/2021).
It is JMK Research’s analysis for Indian solar additions in 9M/2021 that’s the highest of the trio at 8.8 GW (see India Installed 8.8 GW New Solar In 9M/2021).