Gujarat was the top state for total rooftop solar installations, followed by Maharashtra and Rajasthan.
Rooftop solar system costs have increased by 14.75% YoY
Cumulative rooftop solar installations are over 7 GW as of Q4 2021.
Delhi: India added 1.7 GW of rooftop solar capacity the highest ever recorded in the year 2021. The installations were up 210 per cent as compared to 2020, according to Mercom India Research, India Rooftop Solar Market Report Q4 and Annual 2021.
In 2021, the residential and commercial segment accounted for 35 per cent and 33 per cent of installed rooftop solar capacity, respectively. Industrial rooftop solar installations constituted 26 per cent and the remaining 6 per cent was from the government segment.
According to the report, India added 402 megawatts (MW) of rooftop solar in the fourth quarter (Q4) of CY 2021, a 10 per cent drop quarter-over-quarter (QoQ) compared to 448 MW installed in Q3 2021.
However, rooftop solar installations in Q4 2021 were up 41 percent year-over-year (YoY). In Q4 2021, rooftop solar accounted for 15 percent of total solar installations in the country.
“The rooftop solar market in India had its best year, largely due to the pent-up demand from 2020, which experienced a severe decline due to COVID-19. Certainty around net metering regulation helped along with demand from consumers across all segments – residential, commercial, and Industrial. Increase in component costs will dent demand in 2022, but we still expect positive growth this year,” said Raj Prabhu, CEO of Mercom Capital Group.
As report, at the end of Q4 2021, cumulative rooftop solar installations reached over 7 GW. Over the Installations cost the report said, it could have been higher if not for price increases in components, commodities, and raw materials. The increase in the rate of goods and services tax (GST) was also a big blow for installers.
“The average cost of a rooftop solar system increased by 14.75% compared to Q4 2020” the report said.
Installers had to increase prices in 2021 to match the 12% GST hike and combat materials cost increases. In 2021, over 1 GW of rooftop solar tenders were issued, a 56% increase YoY.
The Kerala State Electricity Board (KSEB) contributed to 27% of announced tenders and distribution companies in states like Maharashtra, Jharkhand, West Bengal, and Karnataka, accounted for 29%.
According to the report, distribution companies issued empanelment tenders in Kerala, Punjab, Gujarat, Uttar Pradesh, Jharkhand, Haryana, West Bengal, Tripura, and Karnataka under Phase-II of MNRE’s rooftop solar program during CY 2021.
Gujarat is the leading state for cumulative rooftop solar installations with 27%, followed by Maharashtra and Rajasthan, which added 14% and 10%, respectively.
The top 10 states accounted for approximately 83% of cumulative rooftop solar installations in Q4 2021 and 85% of total installations in CY 2021.
The report said between Q4 2020 to Q4 2021, Maharashtra recorded the highest compounded growth at 26.7%, followed by Uttarakhand and Haryana with growth rates of 26.6% and 24.7%, respectively.