Investments in the Indian Solar Sector Up by 25% YoY in Q2 2022

However, the increase was marginal compared to the last quarter


Investments in the Indian solar sector in the second quarter (Q2) of the calendar year (CY) 2022 totaled $2.82 billion (~₹217.49 billion), a 3% quarter-over-quarter (QoQ) increase compared to the $2.73 billion (~₹205.38 billion) in Q1 2022. Investments were up 24.8% year-over-year (YoY) compared to $2.26 billion (~₹166.71 billion).

The figures were revealed in Mercom India Research’s latest report, Q2 2022 India Solar Market Update.

According to the report, nearly $2.1 billion (~₹160.02 billion) went into utility-scale solar projects and $233 million (~₹17.6 billion) to the rooftop solar segment.

Major large-scale solar developers experienced the highest equity investment influx. Adani Green Energy and Tata Power Renewable Energy received the largest chunk of investments during the quarter.

Investments in Indian Solar Sector by Quarter

The continuing uncertainty over the Great Indian Bustard (GIB) issue in Rajasthan affected projects and impacted investments in the sector during the quarter. Recently, an expert committee constituted to lay down the techno-economic norms on undergrounding of power lines concluded that undergrounding of transmission lines of 66 kV and above voltage levels for evacuation of bulk power was not technically feasible.

Deals that grabbed the headlines in Q2 2022:

Abu Dhabi-based public joint-stock company International Holding Company PJSC announced an investment of $2 billion (~₹154.39 billion) in three of Adani Group’s companies. Adani Green Energy will receive $500 million (~₹38.6 billion) from this investment.

BlackRock and Mubadala will invest ₹40 billion (~$525 million) in equity or compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables. The final shareholding will range from 9.76% to 11.43% on conversion.

Azure Power Global agreed to invest ₹1 billion (~$12.52 million) in solar module manufacturer Premier Energies. Of this, ₹455 million (~$5.89 million) is for a 26% stake in Premier Energies through equity investments and compulsorily convertible debentures. The remaining  ₹545 million (~$7.06 million) will be made in the form of a subscription for optional convertible debentures issued by Premier.

The World Bank approved $165 million (~₹12.74 billion) in additional financing to accelerate the adoption of rooftop solar by residential consumers by making it more affordable. The financing includes a $150 million (~₹11.58 billion) loan from the International Bank for Reconstruction and Development (IBRD) and $15 million (~₹1.16 billion) from the IBRD Fund for Innovative Global Public Goods Solutions.

British International Investment, a U.K. government-owned development financial institution, announced an investment of $89 million (~₹6.87 billion) for solar projects in India. British International Investment is providing $47 million (~₹3.63 billion) as a follow-on investment to the distributed solar company Fourth Partner Energy for projects totaling 294 MW.

Mumbai-based rooftop solar startup SolarSquare raised $4 million (~₹308.78 million) in a seed funding round led by Good Capital with participation from U.S.-based Lowercarbon Capital, Singapore-based Symphony Asia, and Zerodha founder Nithin Kamath’s Rainmatter.

Shell Overseas Investment, a wholly owned subsidiary of Shell, signed an agreement with Actis Solenergi to acquire 100% of Solenergi Power for $1.55 billion (~₹119.65 billion) and the Sprng Energy group of companies. The transaction is subject to regulatory clearance and is expected to close in 2022.

Waaree Energies announced that it won approval from the National Company Law Tribunal to acquire solar cell manufacturer Indosolar. Waaree’s request for the acquisition was cleared under the corporate insolvency resolution process, which the lenders of Indosolar initiated.

Mercom’s Q2 2022 India Solar Market Quarterly Update covers all facets of India’s solar market. For the complete report, visit:


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