India’s Q2 solar deployments soar but pricing challenges occur - Mercom

India brought online 2,488 MW of solar parks in the second quarter of 2021, marking a 1,114% year-on-year jump as the industry recovered after the COVID-19 pandemic.

The installations rose by 19% from the first quarter when the domestic solar industry added 2,090 MW of new capacity, according to Mercom India Research’s latest quarterly report. In the year-ago period, only 205 MW of solar parks were commissioned due to the pandemic.

“Even with a strong quarter, the industry continues to battle uncertainties around higher component costs and logistical issues,” said Mercom Capital Group’s CEO Raj Prabhu. He warned that the industry growth will be hampered by the rising prices for PV components amid duties and import restrictions.

In the first half of 2021, a record 4,578 MW of solar farms became operational, up 251% on the year, regardless of the second wave of COVID-19 and lockdowns in some states. The growth occurred as those lockdowns were scheduled, rather than a contingency, Mercom said.

India’s cumulative solar capacity at the end of June reached 43,600 MW. Its large-scale solar project development pipeline came at 52.8 GW, with 28 GW of projects tendered and pending auction.

Mercom expects that India will deploy between 8 GW and 9 GW of solar capacity in 2021.

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