Solar installations in India were up 35% year-on-year (YoY) in Q1-3 2022, but the average system cost went increased 7.5% for the same period, according to consultancy Mercom Capital Group.
The first nine months of 2022 saw India install 10GW of solar PV, 9GW of which were utility-scale installations, a notable increase on the 7.4GW installed in the first three quarters of 2021. Q3 specifically saw 2.7GW of solar installed, a 35% drop compared with the previous quarter and a 6.6% decrease YoY.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The country’s total installed PV capacity now stands at 60GW, with a utility-scale pipeline of over 58GW and a further 46GW of tendered projects awaiting auction.
Mercom said that the state of Rajasthan accounted for over 27% of India’s solar installations, the state having reached 14GW of installed capacity. Some 4.8GW of projects are awaiting approval from authorities due to the ongoing displacement of the state’s emblematic bird – the Great Indian Bustard – bringing environmental concerns around solar and wind installations to the fore.
The 7.5% rise in solar project prices was unsurprising, as Mercom said that prices have risen in India for nine consecutive quarters.
The research also said that the Technical Expert Committee had highlighted connectivity issues, determining that 66kV underground powerlines are not viable to offload bulk energy, limiting transmission capacity to 33kV and below. Mercom said that this adds ambiguity to India’s installation future and has pushed back commissioning dates on the outstanding projects.
India added 12GW of power capacity in Q1-3 2022, the overwhelming majority being solar. Earlier this month, analysis from Wood Mackenzie said that 82% of the corporate power purchase agreements (PPAs) signed in India were for solar power amidst the Asia Pacific region seeing a boom in corporate PPAs.
PV Tech Premium recently published a Q&A with Vikram Solar discussing India’s push towards domestic PV manufacturing.
