Mumbai, March 9 (FN Agency) India added around 1.7 GW of rooftop solar capacity in 2021, nearly a three fold growth as compared to 2020, a recent report by Mercom India Research said. According to the report, installations were up 210 per cent at 1.7 GW, compared to the calendar year (CY) 2020. “The rooftop solar market in India had its best year, largely due to the pent-up demand from 2020, which experienced a severe decline due to Covid-19. Certainty around net metering regulation helped along with demand from consumers across all segments – residential, commercial, and Industrial,” Mercom Capital Group CEO Raj Prabhu said. In 2021, the residential and commercial segment accounted for 35 per cent and 33 per cent of installed rooftop solar capacity, respectively. Industrial rooftop solar installations constituted 26 per cent, and the remaining six per cent was from the government segment.
According to the report, rooftop solar installations in Q4 2021 were up 41 per cent year-over-year, and accounted for 15 per cent of total solar installations in the country. However, sequentially, solar installations dropped nearly 10 per cent to 402 MW as compared to 448 MW installed in Q3 2021. The report opined that installations could have been higher if not for price increases in components, commodities, and raw materials. The increase in the rate of GST was also a big blow for installers. The average cost of a rooftop solar system increased by 14.75% compared to Q4 2020, according to the report. Installers had to increase prices in 2021 to match the 12 per cent GST hike and combat materials cost increases. “Increase in component costs will dent demand in 2022, but we still expect positive growth this year,” Prabhu added. In 2021, over one GW of rooftop solar tenders were issued, a 56 per cent increase year-on-year.
The Kerala State Electricity Board (KSEB) contributed to 27 per cent of announced tenders and distribution companies in states like Maharashtra, Jharkhand, West Bengal, and Karnataka, accounted for 29 per cent. According to the report, distribution companies issued empanelment tenders in Kerala, Punjab, Gujarat, Uttar Pradesh, Jharkhand, Haryana, West Bengal, Tripura, and Karnataka under Phase-II of MNRE’s rooftop solar program during CY 2021. Gujarat is the leading state for cumulative rooftop solar installations with 27 per cent, followed by Maharashtra and Rajasthan, which added 14 per cent and 10 per cent, respectively. The top 10 states accounted for approximately 83% of cumulative rooftop solar installations in Q4 2021 and 85 per cent of total installations in CY 2021. Between Q4 2020 to Q4 2021, Maharashtra recorded the highest compounded growth at 26.7 per cent, followed by Uttarakhand and Haryana with growth rates of 26.6 per cent and 24.7 per cent, respectively.