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India installed 1.7GW of rooftop PV in 2021

From pv magazine India

India installed 1.7GW of solar in 2021 – its highest-ever annual rooftop solar capacity additions to date.

Installations rose 210% year on year, according to a new report by Mercom India Research. The residential and commercial segments accounted for 35% and 33% of all installed rooftop solar capacity, respectively. Industrial rooftop solar installations accounted for 26% of the total, while the remaining 6% came from the government segment.

“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. An increase in component costs will dent demand in 2022, but we still expect positive growth this year,” said Raj Prabhu, chief executive officer of Mercom Capital Group.

According to the report, India’s cumulative rooftop solar installations surpassed 7GW by Dec. 31, 2021. The state of Gujarat has the most installed rooftop solar capacity, followed by Maharashtra and Rajasthan.

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Rooftop solar installations reached 402MW in the fourth quarter, down 10% from the 448MW added in the third quarter of 2021. However, fourth-quarter installations rose 41% year on year.

Mercom analysts said installations could have been higher in 2021 if not for price increases in components, commodities, and raw materials. The hike in the goods and services tax (GST) rate also dealt a big blow to installers.

Average rooftop solar system in 2021 cost 14.75% more than in the fourth quarter of 2020 as installers increased prices to match the 12% GST hike and high material costs.

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Source: pv magazine