Solar Capacity Additions In Q2 Starts Off On a Strong Note In India

After a strong Q1 (Jan-March’22) when close to 4650 MW of solar capacity was added in India, capacity additions have continued apace in Q2 also, going by the figures for April and May. So far, 2955 MW of fresh capacity has been added during the two months, indicating a high chance of overtaking the capacity added in Q1. By contrast, in the same months last year, India saw capacity additions of just over 1 GW. Thus, it seems clear that last years numbers at least will be roundly exceeded by the end of this financial year. Thus, by May this year, the first 5 months saw capacity additions totaling 7.6 GW.

That means India is on course for its expected 15-16 GW of capacity additions this year too. The Q3 quarter in 2021, saw additions of 3939 MW, the highest in the year when India officially added 11.8 GW in the Jan ’21 to Dec 21 period. For the record, the figure for the full FY21, or April 21 to March 22 period was 13.5 GW.

In June last year, capacity additions  were at 1248 MW, a figure everyone expects to be bettered significantly this June.

Capacity additions are more at risk in the C&I segment, where demand is rising, but issues with domestic sourcing remain. Smaller installers we spoke to at RenewX recently indicated that shortages were beginning to be felt locally, especially for specific brands and types. Thus, for clients who wanted say, a Monocrystalline module from a specific Chinese brand, availability was an issue in some regions. This is likely to get worse considering the ‘confusion’ around ALMM norms.

The jump in prices for smaller projects post the new duty regime is also being felt now, even as clients have made a shift towards newer options, including Bifacials with trackers.

Figures for this story have been quoted based on reports from the Central Electricity Authority (CEA), the mandated government body for sharing numbers on power sector.