Investments in the Indian Solar Sector Declined 171% YoY to $1.03 billion in Q1

Project postponements significantly lowered the investments


Investments in the Indian solar sector in the first quarter (Q1) of the calendar year 2023 totaled $1.03 billion (~₹85 billion), a 171% year-over-year (YoY) decrease from $2.8 billion (~₹211 billion).

Investments were down 37% quarter-over-quarter from $1.63 billion (~₹134 billion).

The figures were revealed in Mercom India Research’s latest report, Q1 2023 India Solar Market Quarterly Update.

During the last quarter, there was a 30% decline in solar installations compared to the previous quarter. The fall was primarily due to the postponement of several large projects, which resulted in reduced investments.

The overall investments were affected by decreased capital inflows into manufacturing during the same period, given the suspension of the Approved List of Models and Manufacturers regulations, the consequent demand uncertainty, and deferred capacity expansion plans.

Investments In Indian Solar Sector

Here are a few important investment deals during the quarter:

The Competition Commission of India approved a $450 million investment through the subscription of compulsorily convertible preference shares of Hero Group’s renewable arm, Hero Future Energies, by Ardor Holding II Pte, a special purpose vehicle indirectly owned by global investment firm Kohlberg Kravis Roberts.

Tata Power Renewable Energy (TPREL) received a capital infusion of ₹20 billion (~$260 million) in the second and final round from UK-based GreenForest New Energies. TPREL has now raised $40 billion (~₹525 million) of equity from GreenForest New Energies. In the latest round, TPREL issued 200 million compulsorily convertible preference shares to GreenForest New Energies for ₹20 billion (~₹260 million).

Government-owned SJVN secured a green financing loan of ₹9.15 billion (~$111 million) from the Japan Bank for International Cooperation to construct two solar power projects in India. The first project is the 90 MW Omkareshwar Floating Solar Power Project in Madhya Pradesh, and the second project is the 100 MW Raghanesda Solar Power Project in Gujarat. The combined estimated cost of these projects is ₹12.9 billion (~$156.5 million).

The Indore Municipal Corporation raised ₹3.03 billion (~$37 million) in green bonds, with its ₹2.44 billion (~$30 million ) issue being oversubscribed by 1.24 times. The proceeds from the green bonds issue will fund a 60 MW ground-mounted captive solar project in the Khargone district in Madhya Pradesh.

Pune-based solar cold storage solutions provider Ecozen raised $25 million in equity and debt capital in its series C round as it looks beyond agriculture to expand into new climate deep-technology fields. Nuveen and Dare Ventures led the Series C equity portion, with participation from the Export-Import Bank of India and existing investors Caspian and Hivos-Triodos Funds.

Mercom’s India Solar Q1 2023 report is 78 pages and covers all facets of India’s solar market. For the complete report, visit: