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According to Mercom India Rooftop Solar Market Report quarter 3 (Q3) 2021, India’s rooftop solar capacity installation tripled to 1.3 GW between January and September 2021, compared to the same period the previous year.
The report says that the country added 448 megawatts (MW) of rooftop solar in July-September this year, showing a 189% increment year-on-year (YoY), but a 14% drop quarter-on-quarter (QoQ) compared to 521 MW installed in April-June.
It stated that the progress in installation is a 200% increase over the same period in 2020 and is at an all-time high in the 9 months of a year.
In Q3 2021, the residential sector accounted for 54% of rooftop solar installations which is the highest, followed by the commercial & industrial and government sectors, which accounted for 44% and 2%, respectively. For the second quarter in a row, residential installations were at an all-time high.
As per the report, total rooftop solar installations reached 6.7 GW by the end of Q3 2021.
Over 200 MW of rooftop solar projects were offered in Q3, representing a 62% QoQ and a 125% YoY upsurge. The Kerala State Electricity Board announced approximately 47% of the tenders, the highest.
Tripura, Bihar, West Bengal, Uttar Pradesh, Kerala, Uttarakhand, and Haryana are all looking for solar installers to establish residential rooftop solar systems under Phase-II of the MNRE’s Grid-Connected Rooftop Solar Programme.
In the third quarter of 2021, the top ten states accounted for around 83% of all rooftop solar installations. Gujarat, Rajasthan and Maharashtra are the top three with 26%, 14% and 10% cumulative rooftop solar facilities, respectively.
Uttarakhand had the largest compounded quarterly installation increase, at 35%, followed by Maharashtra and Haryana, at 31% and 29%, respectively.
According to the survey, installers are receiving a growing number of queries from consumers who understand the economic and environmental benefits of adopting solar.
Component costs have been gradually rising since the second wave of Covid, with little indications of abating. According to the research, system expenses increased consistently in 2021, with a 3.8% increase in Q1, a 3% increase in Q2, and a 2.3% increase in Q3.
Mercom Capital Group CEO Raj Prabhu said that the rooftop market is returning to pre-COVID levels, but the rising component costs and material scarcity are setting back the growth.
Rooftop system prices have climbed by 9% in the last year. Furthermore, several states have imposed limits on rooftop solar, therefore, restraining development.