India Added Over 456 MW of Rooftop Solar Capacity in Q1, Second-Highest in a Quarter
Rooftop solar accounted for 15% of the total solar installations during the quarter
India added 456 MW of rooftop solar capacity in the first quarter (Q1) of the calendar year (CY) 2022, a 34% year-over-year growth compared to 341 MW registered in the same period last year. In a quarter-over-quarter (QoQ) comparison, installations were up by 13%, compared to the 402 MW installed in Q4 2021.
The installation numbers were the second-highest in any quarter after Q2 2021.
The numbers were revealed in Mercom India Research’s latest report, ‘Mercom India Rooftop Solar Market Report Q1 2022.’
In Q1 2022, rooftop solar accounted for 15% of the total solar installations. At the end of Q1, India’s cumulative rooftop solar capacity was approximately 7.6 GW. During the quarter, 47% of the installations were in the industrial segment, followed by 29%, 22%, and 2% in commercial, residential, and government segments.
“It was another great quarter for the rooftop solar market as post-Covid installations continued to surge. Rooftop installations have topped 400 MW for four quarters in a row, which is a first. Commercial and Industrial segments were again the driving force accounting for most installations. However, future growth is dependent on system costs. If the prices continue to go up and project economics deteriorate, demand is bound to contract in the short term,” said Raj Prabhu, CEO of Mercom Capital Group.
According to the report, the average cost of a rooftop solar system increased by 17% in Q1 2022 compared to the same period last year.
In Q1 2022, around 71% of the rooftop solar installations were under the capital expenditure (CAPEX) model, while the operating expenditure (OPEX) or renewable energy service company (RESCO) model represented the rest. Overall project margins have reduced due to the rise in component prices, the advent of basic customs duty (BCD), and the hike in goods and services tax (GST).
States have been empaneling vendors and commissioning the allocated capacities under the Ministry of New and Renewable Energy’s (MNRE) Phase II Rooftop Solar Program, driving CAPEX installations. About 1.2 GW of empanelment tenders were floated by Gujarat, Karnataka, Telangana, Madhya Pradesh, Odisha, Himachal Pradesh, Jharkhand, Nagaland, and West Bengal.
In Q1 2022, tendering activity increased by 269% compared to Q4 2021 and 214% compared to the same period last year.
The top 10 states accounted for nearly 73% of cumulative rooftop solar installations at the end of Q1 2022. Gujarat is the top state for cumulative solar rooftop installations, while Maharashtra and Rajasthan rank second and third.
Key Highlights from Mercom India Research’s India Rooftop Solar Market Report Q1 2022
- In Q1 2022, India added over 456 MW of rooftop solar capacity, the second-highest in any quarter after Q2 2021.
- Cumulative rooftop solar installations are 7.6 GW as of Q1 2022.
- The top 10 states accounted for nearly 73% of the rooftop solar capacity.
- In Q1 2022, 47% of rooftop solar installations came from the industrial segment, followed by 29%, 22%, and 2% in commercial, residential, and government segments.
- In Q1 2022, about 71% of rooftop solar installations were under the CAPEX model, while additions under the OPEX/RESCO model contributed to the remaining 29%.
- Gujarat was the top state for total rooftop solar installations, followed by Maharashtra and Rajasthan.
- Rooftop solar system costs have increased by 17% YoY.
The Mercom India Rooftop Solar Report Q1 2022 is 46 pages and covers all facets of India’s rooftop solar market. For the complete report, visit: https://mercomindia.com/product/q1-2022-india-rooftop-solar-market-report