India’s Solar Sector Received Investments Totaling $1.86 Billion in Q2 2018

Investment into the sector is expected to be lower over the next few quarters


The Indian solar sector received investments to the tune of $1.86 billion in the second quarter (Q2) of calendar year (CY) 2018 according to Mercom India Quarterly Market Updates. Investments declined 26 percent quarter-over-quarter compared to $2.5 billion that poured into the sector in Q1 CY 2018.

The decline in investments in Q2 was largely due to slowdown in project installation activity in Q2 by 52 percent quarter-over-quarter. Project installation activity fell due to a lack of large-scale project pipeline as tenders and auctions slowed down towards the end of last year. Capital requirements also declined as project costs fell quarter-over-quarter largely due to module price declines.

The slowdown in installation activity in Q2 was due to government agencies stalling tenders with the expectation of lower tariffs, clearance of goods and services tax (GST) related issues as well as uncertainty brought on by the trade cases. Compared to the 3 GW installed in Q1 CY 2018, Q2 witnessed an installation of approximately 1.6 GW of solar according to preliminary data from Mercom India Research.

Corporate funding (VC/PE, public market, and debt) raised by the Indian solar companies in Q2 increased to $901 million.

“Investments into the solar sector in India are likely slow down over the next several quarters as project installation levels are expected to be subdued due to anticipated rise in solar component prices as a result of 25 percent safeguard duty imposed by the government,” said Raj Prabhu, CEO of Mercom Capital Group.

During Q1 2018, the Indian solar sector attracted investments totaling $2.5 billion (~₹164 billion). Compared to the CY 2017, in which the Indian solar sector logged over $10 billion (~₹650 billion) in financing activity, in the first half (H1) of CY 2018, the Indian solar sector has attracted $4.36 billion (~₹304.844 billion).

At the end of Q2 CY 2018, India’s cumulative solar installations stood at ~24.6 GW. In Q2 CY 2018, out of the total investment of $1.86 billion, project financing accounted for $934 million and corporate funding $901.45 million.

Here are a few notable funding deals that took place in India during Q2 CY 2018:


ZunRoof, an Indian solar rooftop startup, raised ₹16.6 million ($0.25 million) in the second round of angel funding from I3N and a group of IIT Kharagpur alumni based in the U.S.

Fourth Partner Energy, a distributed energy management company, raised a $70 million investment from The Rise Fund, a global impact investment fund managed by TPG Growth. Fourth Partner Energy will use this investment to strengthen its position in this emerging sector and accelerate its growth through the RESCO model across industrial and commercial corporate and public-sector clients.

Concurrent with ReNew Ostro m&a transaction, Canada Pension Plan Investment Board (CPPIB) invested an additional $247 million towards ReNew Power’s financing for this acquisition.

Greenko Energy Holdings, a renewable energy project developer, raised $447 million in equity financing from an affiliate of GIC and a wholly owned entity by the Abu Dhabi Investment Authority (ADIA).

Indian renewable energy project developer Azure Power raised $135 million in debt financing from a consortium of development finance institutions. The proceeds will be used to finance approximately 200 MW of Azure Power’s rooftop solar photovoltaic (PV) projects across India.

Mergers and Acquisitions:

ReNew Power acquired Ostro Energy Private Limited for up to ~$1.63 billion.

The Greenko Group acquired Orange Renewables  for an enterprise value of approximately $1.02 billion.

Hinduja National Power Corporation Limited (HNPCL), a subsidiary of the Hinduja Group, completed the acquisition of Kiran Energy Solar Power in a deal valued at approximately ~$147 million.

For a full list of funding and m&a deals globally, visit:

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.