From pv magazine india
India added 10 GW of new solar capacity in 2021, up 210% from 3.2 GW installed in 2020, according to a recently released report by Mercom India Research.
Utility-scale solar projects accounted for 83% of all PV installations, up 230% year-on-year. Rooftop solar installations accounted for the remaining 17%, Mercom India Research said.
A significant number of projects from 2020 have been postponed to 2021 due to the pandemic related to the Ministry of New and Renewable Energy. project timeline extensions. This has boosted overall capacity additions in 2021. India’s cumulative installed PV capacity reached around 49 GW at the end of December.
Mercom India Research report predicts strong PV growth for this year, despite module supply constraints due to Approved List of Models and Manufacturers (ALMM) mandate. It identifies the basic customs duties and rising component prices as the main challenges for the industry on the supply side.
“The demand outlook for 2022 is strong, but there are significant challenges ahead for the industry, starting with the basic customs duty, import restrictions and goods and services tax in addition to global supply chain issues and high component prices. Challenges aside, the Indian solar market has significant growth potential and is just beginning to take off,” said Raj Prabhu, Managing Director of Mercom Capital Group.
The report notes that average project costs increased in 2021 due to rising module costs, raw material prices and transportation costs. Average large-scale project costs rose 21.6% year-over-year in the fourth quarter – the largest increase in the past 10 years. Average rooftop solar costs in the fourth quarter increased 14.8% year-on-year.
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