Mahindra Susten to Develop 150 MW Open Access Renewable Power Project

BJP, Congress Bet Big on Renewables in 2024 Election Manifestos

Daily News Wrap-Up: REIL Invites Bids for 200,000 Mono PERC Solar Cells

Solar, Storage, Wind Drive 95% of US Interconnection Queues as Backlog Rises

Ahasolar Wins Consultancy Contract for 52 MW Solar Project from BPCL

REIL Invites Bids for 200,000 Mono PERC Solar Cells

Daily News Wrap-Up: MNRE Adds 4.1 GW of New Solar Module Capacity to ALMM

MNRE Adds 4.1 GW of New Solar Module Capacity to ALMM

AutoNxt Secures Pre-Series A Funding to Finance Electric Tractor Launch

Daily News Wrap-Up: REC Records Highest-Ever Loan Approvals in FY24

<p>The average cost of large-scale solar projects in the third quarter of 2021 (Q3 2021) was about ₹42.4 million (~$559,828)/MW, according to Mercom’s recently released <a href="https://mercomindia.com/product/q3-2021-india-solar-market-update/" target="_blank" rel="noopener">Q3 2021 India Solar Market Update</a>.</p>
<p>The cost increased by 23% compared to the same period <a href="https://mercomindia.com/cost-large-scale-rooftop-solar/" target="_blank" rel="noopener">last year</a> when it was ₹34.5 million (~$455,322)/MW and a 10% rise from the <a href="https://mercomindia.com/average-cost-to-build-large-scale-solar-rises/" target="_blank" rel="noopener">previous quarter</a> (Q2 2021) when the cost was about ₹38.6 million (~$509,433)/MW.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-31058" src="https://mercomindia.com/wp-content/uploads/2021/12/system-cost.png" alt="system cost" width="518" height="371" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/system-cost.png 518w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/system-cost-300x215.png 300w" sizes="(max-width: 518px) 100vw, 518px" /></p>
<p>The rise in large-scale system costs in Q3 2021 is mainly attributable to an <a href="https://mercomindia.com/freight-charges-module-remain-high-six-months/" target="_blank" rel="noopener">increase</a> in freight charges solar components. The freight charges, which have been on an upward trajectory from the time of the Covid-19 outbreak, have adversely impacted the import of solar modules to India. The shortage of containers is another issue, creating problems in importing raw materials from China.</p>
<p>The rising price trends in commodities, including steel, aluminum, and copper, also <a href="https://mercomindia.com/commodity-prices-continue-rising-solar/" target="_blank" rel="noopener">contributed</a> to the rise in large-scale system costs. The cost of the aluminum profile went up by 30-40% during the quarter. The prices of silicon and the EVA sheets have also gone up by 40-50%.</p>
<p>India added 2,835 MW of solar capacity in Q3 2021, an increase of 14% compared to 2,488 MW <a href="https://mercomindia.com/india-solar-capacity-additions-grew-1h-2021/" target="_blank" rel="noopener">installed</a> in Q2 2021. The figures marked a massive 547% year-over-year (YoY) surge.</p>
<p>As per the report, in 9M 2021, India added over 7.4 GW of solar capacity, which was higher by 335% compared to 1.73 GW in 9M 2020. The cumulative installed capacity at the end of Q3 2021 stood at 46.6 GW.</p>
<p>The average selling prices of solar modules have continued to rise. Module prices have surged, along with raw material prices after major manufacturers started cutting output in line with electricity constraints in China.</p>
<p>According to the report, the prices of polycrystalline modules from China increased by 4%, and Chinese mono PERC module ASPs increased by 17% QoQ. The prices of Chinese modules have increased for six sequential quarters, a trend that has never been seen in the past ten years.</p>
<p>A surge of solar project development delay cases linked to the overpricing led investors to pare back spending, while persistent supply chain problems hampered businesses.</p>
<p>Solar module manufacturers <a href="https://mercomindia.com/solar-module-prices-remain-high/" target="_blank" rel="noopener">believe</a> that prices of Chinese modules are expected to stay high until Q1 2022.</p>
<p>For the complete report, please visit: <a href="https://mercomindia.com/product/q3-2021-india-solar-market-update" target="_blank" rel="noopener">https://mercomindia.com/product/q3-2021-india-solar-market-update</a></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
<p style="height: 17px">
</div>
</div></div><div class="clearfix"></div></div></div>

Average Cost to Build Large-Scale Solar Projects Climbed by 23% YoY in Q3 2021

q3-2021-india-solar-market-update

Get the most relevant India solar and clean energy news.

RECENT POSTS