India added 1.7 GW of rooftop solar in a calendar year (CY) 2021, the most ever reported in a single year. According to Mercom India Rooftop Solar Market Q4 and Annual Report 2021, installations increased by up to 138% compared to 2020.
According to the estimate, rooftop installation in the nation reached 7 GW by the end of December 2021.
In 2021, residential installations accounted for the highest installed solar rooftop capacity, with 35% of total installations among all segments. The commercial and industrial categories contributed 33% and 26% of all installations, respectively, while the government segment accounted for 6%.
The country installed 402 MW of new rooftop solar systems, which accounted for 15% of total solar installation in the nation in the fourth quarter (Q4) of CY 2021. Nevertheless, a 10% decrease has been seen on quarter-over-quarter (QoQ) from 448 MW in the third quarter (Q3) of CY 2021.
However, installation during the quarter climbed by 41% year-on-year (YoY) as compared to Q4, 2020.
The commercial sector accounted for 44% of total installed capacity in Q4, 2021, followed by the industrial and residential sectors, which accounted for 41% and 10%, respectively. However, in this quarter, the contribution from the government sector was just 5%.
Over 1 GW of solar bids were issued in 2021, representing a 56% increase YoY. The Kerala State Electricity Board (KSEB) issued 27% of the advertised tenders, while distribution corporations in West Bengal, Jharkhand, Maharashtra, and Karnataka have a share of 29%.
Tenders for rooftop solar projects surged by 70% in Q4 2021 compared to Q3 2021. Tendering activity increased by 48% compared to the same time in 2020.
The Maharashtra State Electricity Distribution Company (MSEDCL) declared 56% of the tender capacity in Q4 2021, while the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) announced 11%. Other agencies issued roughly 24% of the bids.
In 2021, Gujarat led the way among the states in terms of cumulative installation, accounting for 27% of total installations, heeded by Maharashtra and Rajasthan, which accounted for 14% and 10%, respectively.
Maharashtra had the greatest compounded growth rate from Q4 2020 to Q4 2021, at 26.7%, followed by Uttarakhand and Haryana, at 26.6% and 24.7%, respectively. Collectively, the top ten states represented 83% of all aggregate installations at the end of Q4 2021.
