India added 1.7 gigawatts (GW) of rooftop solar in the calendar year (CY) 2021, the highest ever recorded in a calendar year, according to Mercom India’s rooftop solar market report Q4 and Annual 2021.
Installations were up 210 per cent compared to the CY 2020. 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 per cent year-over-year (YoY).
According to the report, at the end of Q4 2021, cumulative rooftop solar installations reached over 7 GW. As per the report the top 10 states accounted for nearly 85 per cent of the rooftop solar installations in CY 2021. Gujarat was the top state for total rooftop solar installations to date, followed by Maharashtra and Rajasthan ranking second and third, respectively.
In Q4 2021, 44 per cent of rooftop solar installations came from the commercial segment, followed by 41 per cent, 10 per cent and 5 per cent in industrial, residential, and government segments.
“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.
In Q4 2021, about 68 per cent of rooftop solar installations were under the CAPEX model, while additions under the OPEX/RESCO model contributed to the remaining 32 per cent. Further, YoY, rooftop solar system costs have increased by 14.75 per cent.