According to the newly released 2021 Q4 and Annual India Solar Market Update by Mercom India Research, India added 10 gigawatts (GW) of solar capacity in the calendar year (CY) 2021, a record 210 percent increase year-over-year (YoY), compared to 3.2 GW installed in the calendar year (CY) 2020.
India’s solar installations in 2021 were the biggest ever, surpassing 10 GW for the first time in a year. Large-scale solar projects accounted for 83 percent of installations in CY 2021, with 8.3 GW, a 230 percent increase year over year. Rooftop installations accounted for the remaining 17%, adding 1.7 GW, a 138 percent increase year over year.
Due to COVID-19 delays, a large number of projects were pushed from 2020 to 2021, resulting in higher installation totals in 2021. At the end of Q4 2021, India’s total solar installed capacity was estimated to be around 49 GW.
The top three states for large-scale solar installations were Rajasthan, Karnataka, and Andhra Pradesh. In 2021, average large-scale project expenses grew 21.6 percent YoY, the highest level in ten years.
The top three states for large-scale solar installations were Rajasthan, Karnataka, and Andhra Pradesh. In 2021, average large-scale project expenses grew 21.6 percent YoY, the highest level in ten years.
According to the research, India’s installed renewable energy capacity, including large hydro projects, was 150.9 GW at the end of December 2021, accounting for 38.4 percent of the overall power mix. In 2021, newly installed solar capacity set a record high, accounting for 62% of all new generating capacity built.
Solar accounted for 62 percent of new power capacity additions in 2021, the highest proportion of any renewable energy source, and renewable energy sources accounted for almost 77 percent of new power capacity additions. According to Mercom, the demand outlook for 2022 is positive, but the industry faces substantial obstacles, including fundamental customs duties, import limitations, and the goods and services tax, in addition to global supply chain issues and high component prices.
“Challenges aside, the Indian solar market has significant growth potential and is only just starting to take off,” said Raj Prabhu, CEO of Mercom Capital Group.
Source: indoasiancommodities.com