Comments
India has added 521 megawatts (MW) of rooftop solar in the second quarter (Q2) of the calendar year (CY) 2021, a 53 per cent increase quarter-on-quarter (QoQ) compared to 341 MW installed in Q1 2021.
According to Mercom India Research’s Rooftop Solar Market Report Q2 2021, rooftop solar installations were up 517 per cent year-on-year (YoY) compared to the 85 MW installed in Q2 2020.
Rooftop solar capacity additions in India in Q2 2021 were the highest in a quarter. Installations were significantly higher than the previous quarter despite the second Covid wave. This quarter’s installation numbers were skewed due to a large amount of residential rooftop solar capacity commissioned in Gujarat.
Also see: Campuses are beginning to see green
In H1 2021, 862 MW of rooftop solar capacity was added, a 210 per cent increase compared to the same period of last year. Installations in H1 have already surpassed the total rooftop solar capacity installed in all of 2020 (719 MW) when the market was severely affected by Covid-19 lockdowns. If the market has no other adverse Covid-related events for the rest of the year, 2021 could be the second-largest year for rooftop solar after 2018.
“The rooftop solar segment had a strong quarter, and demand is up. Finalising the net metering cap at 500 kW has removed uncertainty for installers and paved the way for future growth. However, haphazard rooftop solar policies across States and a lack of support from distribution companies are holding back the sector from realising its true potential to bring in new investment, create jobs and drive the clean energy economy forward,” said Raj Prabhu, CEO of Mercom Capital Group.
According to the report, at the end of Q2 2021, cumulative rooftop solar installations reached 6.1 GW.
Tenders for solar projects
In Q2 2021, more than 130 MW of rooftop solar projects were tendered, a 69 per cent QoQ decrease but a 46 per cent YoY increase.
In Q2 2021, the majority of the rooftop solar installations were in Gujarat, accounting for about 55 per cent of installed capacity this quarter. Maharashtra and Haryana rounded off the top three States for rooftop solar in Q2 2021.
The industry witnessed a surge of demand from commercial and industrial consumers.
According to the report, system costs have been rising since Q3 2020 due to increasing costs led by modules and other components, coupled with raw material shortages. Solar modules still make up the majority of rooftop solar costs. Even with rising costs, consumers are realising that solar is still cheaper than retail power tariffs.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.