Average Cost of Large-Scale Solar Projects Up 7.3% YoY in 2022
The costs have now risen ten quarters in a row
The average cost of large-scale solar projects in the fourth quarter (Q4) of the calendar year (CY) 2022 increased by 7.3%, year-over-year (YoY), according to Mercom India Research’s newly released 2022 Q4 & Annual India Solar Market Update.
Large-scale solar system costs were up marginally (1.1%) quarter-over-quarter (QoQ).
India witnessed a surge in the average cost of projects, primarily because of higher module prices and supply constraints during 2022. This trend persisted for ten consecutive quarters, representing an unprecedented period of continuous project cost escalation.
The average selling price (ASP) of Indian mono PERC modules rose 16.6% YoY, while it surged by 42.1% YoY for Chinese mono PERC modules. On a QoQ basis, the ASP of Indian mono PERC modules increased by 6.7%, while Chinese mono PERC module prices fell by 2.5%.
India’s Q4 2022 solar installations registered a decline of 2.5% QoQ, with 2.6 GW added. This is 5% lower than the 2.8 GW installed during the corresponding period last year.
Nonetheless, India achieved a new milestone in 2022 by adding a record-breaking 13 GW solar capacity, representing a significant YoY increase of 27% compared to 10.2 GW installed in CY21.
India’s cumulative installed solar capacity now stands at 63 GW, according to Mercom’s India Solar Project Tracker.
In CY22, large-scale solar projects accounted for 87% of the total capacity added, a 33% YoY increase. The delayed projects, held back due to the second wave of COVID-19 in 2021, were completed in 2022, contributing to the increased capacity installed during the year.
India’s large-scale solar project pipeline stood at 58 GW, with another 51 GW of projects tendered and pending auction at the end of 2022.
As of December 2022, Rajasthan, Karnataka, and Gujarat emerged as the top three states in India, collectively accounting for 54% of the country’s cumulative large-scale solar installations.
Rajasthan led large-scale solar capacity additions in CY22.
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