In Q1 2022, India added over 3 GW of solar capacity, a 21% increase compared to 2.6 GW installed in Q4 2021. Year-over-year (YoY) installations rose by 50% compared to the 2 GW added in Q1 2021, according to the newly released Q1 2022 India Solar Market Update by Mercom India Research.
During Q1 2022, 2.7 GW of large-scale solar was installed, a quarter-over-quarter (QoQ) increase of 23% and a 53% YoY increase.
Large-scale solar accounted for 85% of the installations, and rooftop accounted for the remaining 15% during the reporting period.
India’s cumulative installed solar capacity now stands at 52 GW.
 |
According to the report, while 2021 was the most significant year for the Indian solar industry, with over 10 GW of installations, 2022 is slated to be an even stronger year.
There is still a lot of ambiguity around projects impacted by the Great Indian Bustard (GIB). To protect the critically endangered bird, the Supreme Court earlier said that transmission lines running through the priority areas of the GIB need to be either underground or have bird diverters installed. A Committee has been formed to review cases individually and provide their feedback to the Apex Court. This process is taking time and will likely affect project development this year.
“The uncertainty around the Great Indian Bustard case in Rajasthan is the only issue standing in the way of 2022 being another record year for solar installations. Everything depends on the Supreme Court ruling and how quickly it is resolved. A little push from the government can help India surpass the 60 GW large-scale solar installation target set for 2022, which will be a great achievement,” said Raj Prabhu, CEO of Mercom Capital Group.
Rajasthan became the first state to cross 10 GW of cumulative large-scale solar PV installations, with over 10 GW installed as of March 2022, and accounts for 24% of the total installations in the country.
In Q1 2022, Rajasthan and Gujarat were the top states for solar, accounting for 52% and 18% of installations, respectively, followed by Karnataka with 6%.
Multiple implementing agencies announced about 5 GW of tenders in Q1 2022, a decrease of 52% YoY compared to over 10 GW announced in Q1 2021. Tender activity in Q1 2022 declined by about 18% QoQ compared to nearly 6 GW released in Q4 2021.
With the BCD applicable from the second quarter (Q2) of 2022 on solar cells and modules, this quarter saw a significant increase in solar module imports, noted the report. In Q1 2022, developers procured almost 10 GW of solar modules and stockpiled them ahead of the advent of Basic Customs Duty (BCD), which took effect on April 1, 2022. Several developers tried to commission their projects before the BCD came into effect. They wanted to avoid paying the additional duty and claim the amount later due to the cumbersome regulatory process.
In Q1 2022, India added 4.6 GW of total power capacity, with most new installations coming from solar power. Solar accounted for 68% of new power capacity during the quarter, the largest share captured by solar in any given quarter.
 |
Key Highlights from Mercom India Research's Q1 2022 India Solar Market Update:
- In Q1 2022, India added over 3 GW of solar capacity, a 21% increase compared to 2.6 GW installed in Q4 2021.
- Large-scale solar accounted for 86% of the installations, and rooftop solar for the remaining 14%.
- India’s cumulative installed solar capacity now stands at 52 GW.
- In Q1 2022, renewable energy sources accounted for about 81%.
- Solar accounted for 68% of new power capacity during the quarter.
- In Q1 2022, Rajasthan and Gujarat were the top states for solar installations.
- Rajasthan became the first state to cross 10 GW of cumulative large-scale solar PV installations.
Mercom Communications India, a subsidiary of U.S.-based Mercom Capital Group, is a clean energy research and communications firm in India recognized worldwide for its expertise in Indian cleantech markets. Located in Bangalore, India, Mercom has been providing communications and research services across India for clean energy organizations since early 2009. For more information, visit: https://www.mercomindia.com
The country has a utility-scale projects development pipeline of over 54 GW. Another 33 GW of projects tendered are awaiting auction.
Advertisements