In Q2, India's new solar installed capacity was about 2.5GW, an 11-fold increase year-on-year

In the second quarter of 2021, India added 2,488 MW of new solar capacity, up 19%
sequentially.
Solar installations increased by 1,114% year-on-year compared to the 205 MW increase in the same period of 2020, when it was mainly adversely affected
by the Covid-19 pandemic.
Capacity additions in the second quarter of 2021 were the highest since
the second quarter of 2018.

According to a report by Mercom Capital India, India's clean energy research institute, cumulative solar installations in India reached 43.
6 GW
at the end of the second quarter of 2021.

In the first half of 2021, India added 4,578 MW of new solar capacity, up 251% year-on-year and exceeding the installed capacity for all of 2020
.

The report notes that despite the second wave of the Covid-19 pandemic and the lockdowns imposed by states in the first half of the year on a case-by-case basis, installations have increased, mainly due to targeted lockdowns this year, allowing the solar industry to better respond to emergencies
.

"Even with a strong quarter, the industry continues to face uncertainty about higher component costs and logistical issues
.
With solar system costs rising for the fourth consecutive quarter due to tariffs and import restrictions, buying quality solar modules at the best prices will be the biggest challenge facing the industry going forward," said Raj Prabhu, CEO of Mercom Capital Group.

The government's focus has shifted to building domestic manufacturing capacity
.
”

The report predicts that solar installations will be between 8-9 GW in 2021, as the sector performed much
better during the second wave of the Covid-19 pandemic.
However, the average selling price of solar modules has risen for the fifth consecutive quarter, and this trend will continue for several more quarters
.
Similarly, freight rates are rising and show no signs of
recovery in the short term.

Over the past six months, rising prices for commodities, including steel, aluminum and copper, have begun to take a toll
on solar developers.
In addition, soaring steel prices have heightened risks
for engineering, procurement and construction players in the solar sector, as well as module manufacturers.

According to the report, by the end of the second quarter of 2021, the large-scale solar project development pipeline was 52.
8 GW, of which 28 GW of projects were tendered and awaiting auction
.

Gujarat and Rajasthan are the two states with the highest number of installations, followed by Uttar Pradesh and Andhra Pradesh
.
Installs accounted for 95%
of the total installations in the top ten states.

"While module costs continue to rise, bids have fallen recently as developers are taking a winning approach at all costs as new projects are not auctioned at the pace developers need to maintain operations," Prabhu added
.

The report also added that new solar installed capacity in the first half of 2021 was the highest ever, accounting for 53%
of total new capacity.
In the first half of 2021, renewables, including solar, wind and hydropower, accounted for 71%
of new capacity.