Chennai: India made significant stride in building solar power capacity in the first nine months of 2021. During the January-September period, the country added over 7.4 gigawatts of solar power capacity, a 335 per cent increase compared to the 1.73 GW installed in the same period in 2020.
Installations grew despite market challenges, according to a report by Mercom India. Increased raw materials costs, severe volatility in module availability and price, curtailment of power in several states, and high freight charges have all added to the difficulties for the developers.
“Despite supply challenges, the Indian solar market is headed towards one of best years on record, and a complete turnaround from 2021, which was one of the worst years for solar due to Covid-19,” said Raj Prabhu, CEO of Mercom Capital Group.
“We expect a strong 2022 despite the high price of components and uncertainties surrounding the Great Indian Bustard related transmission issue in Rajasthan. An increase in GST, curtailment and payment issues are adding to the challenges facing developers and constraining growth,” he said.
Rajasthan is now the top solar state in India in terms of cumulative installed capacity, overtaking Karnataka, which had held the position since 2018.
