India Installed a Record 1,700 MW Rooftop Solar Capacity in 2021: Mercom India

According to a Mercom India Research report, India installed a record 1,700 megawatts (MW) of rooftop solar capacity in 2021, representing a 136% year-on-year increase. According to the research firm's most recent report released on Wednesday, the country added 719 MW of rooftop solar capacity in 2020.

In 2021, India added a record 1.7 GW of rooftop solar capacity, the most in a single year. The installations increased by 136% compared to 719 MW in 2020, according to the Annual 2021 India Rooftop Solar Market report.

Residential and commercial segments accounted for 35% and 33% of installed rooftop solar capacity, respectively, in 2021. Industrial rooftop solar installations accounted for 26%, with the remaining 6% coming from the government sector.

"The rooftop solar market in India had its best year, owing largely to pent-up demand from 2020, which saw a significant decline due to the COVID-19. The certainty surrounding net metering regulation aided consumer demand across all segments - residential, commercial, and industrial. Component cost increases will dampen demand in 2022, but we still expect positive growth this year,” stated Raj Prabhu, CEO, Mercom Capital Group.

Gujarat led the way in cumulative rooftop solar installations with a 27% share, followed by Maharashtra and Rajasthan, which added 14% and 10%, respectively. In 2021, the top ten states will account for approximately 85 percent of total rooftop solar installations.

According to the report, if prices for components, commodities, and raw materials had not risen, the number of installations could have been higher. "The increase in the rate of the goods and services tax (GST) was also a major setback for installers. When compared to October-December 2020, the average cost of a rooftop solar system increased by 14.75 percent. Installers had to raise their prices in 2021 to match the 12% GST increase and to keep up with rising material costs."

However, tenders for more than 1 GW of rooftop solar capacity were issued in 2021, representing a 56% increase year on year. Kerala State Electricity Board (KSEB) contributed 27% of all tenders issued. Distribution companies in Maharashtra, Jharkhand, West Bengal, and Karnataka accounted for 29% of the total.

According to the report, distribution companies issued empanelment tenders in Kerala, Punjab, Gujarat, Uttar Pradesh, Jharkhand, Haryana, West Bengal, Tripura, and Karnataka during Phase-II of the MNRE's rooftop solar programme.