India Sees 335% Elevation In Installed Solar Capacity Till Q3 Of 2021

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According to a recent  Mercom India Research’s report, in the first nine months of 2021. India added over 7.4 gigawatts (GW) of solar generating capacity, a 335% year-on-year (y-o-y) increase over the 1.73 GW installed in the same period the previous year.

India added 2,835 megawatts (MW) of solar power capacity in the third quarter (Q3) of 2021, which is 14% up from 2,488 MW in Q2. As per the research, titled ‘Q3 2021 India Solar Market Update,’ installations increased by 547% year over year in Q3.

Elevated raw material costs, extreme fluctuation in module availability and pricing, power outages in multiple states, and expensive freight costs have all exacerbated the developers’ problems, according to the report.

“Despite supply constraints, the Indian solar sector is on track to have one of its strongest years ever,” stated Raj Prabhu, CEO of Mercom Capital Group. “This is a total turnaround from 2021, which was one of the worst years for solar, owing to COVID-19.”

Production capacity expansion is continuing at a rapid rate as domestic companies prepare to take leverage of the 40% basic customs tariff that will be implemented in April 2022, said Prabhu.

He also added, with the imports becoming expensive, the dramatic change in the procurement pattern can be expected in Q2 of next year.

Module costs have now risen for six consecutive quarters, a trend not observed in the previous ten years, according to the research.

Tender releases were 16% more in September, while bidding activity was up 181% year over year.

For the third quarter in a row, Rajasthan has been the leading solar installer, accounting for around 63% of all large-scale solar installations in the country, followed by Gujarat with 19%.

The 10 leading states accounted for nearly 96% of the nation’s total large-scale solar facilities as of September.

India added over 11.6 GW of power capacity in the first nine months of 2021, according to the data. Solar power accounted for about 60% of new capacity expansions, with thermal power accounting for the remaining 21%. Renewables, especially large hydro, accounted for 79% of total power capacity additions in 2021 from January to September.

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