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In 2021, India installed a record 10 gigawatts of solar capacity, registering a 212 percent year-on-year increase, according to Mercom India Research.
From the company’s latest report, India saw 3.2 GW of solar capacity from installations in 2020. By the end of December 2021, the cumulative installed solar capacity was around 49 GW.
According to the report, solar accounted for 62 percent of annual growth. Rooftop installations recorded a 138 percent increase in 2021 compared to the previous year.
Broken down by territory, Rajasthan, Karnataka and Andhra Pradesh were the top 3 states for large solar capacity cumulatively, accounting for 50 percent of installations across the country. Rajasthan led the capacity expansion in 2021 with 4.5 percent.
The demand outlook for 2022 looks strong but with numerous challenges along the way including fundamental tariffs, import restrictions, GST (goods and services tax) as well as the larger global supply chain issues, including higher component prices than common, said the report.
The report also highlighted that the average project cost was higher in 2021 due to higher module, raw material and freight costs.
Solar tenders fell 4.3 percent year-on-year, while auctions fell 2.6 percent compared to 2020. The report said the slowdown was due to delays in signing electricity sales contracts, as well as a lack of clarity on applicable tariffs, it added.