The average cost of large-scale solar projects in the third quarter (Q3) of the calendar year (CY) 2022 was ₹45.6 million (~$559,866)/MW, a year-over-year (YoY) increase of 8%, according to Mercom’s recently released Q3 2022 India Solar Market Update.

Large-scale solar system costs were up only 0.4% quarter-over-quarter (QoQ) as component costs steadied during the period.

India installed 2.7 GW of solar during the quarter. However, solar capacity additions were down by 32% QoQ and 6.6% YoY. India’s cumulative installed solar capacity now stands at 60 GW, according to Mercom’s India Solar Project Tracker.

Large-scale solar system costs have now risen nine quarters in a row. The ASP of Indian mono PERC modules rose 16% YoY, while it surged by 47% YoY for Chinese mono PERC modules. However, on a QoQ basis, the ASP of Indian and Chinese mono PERC modules fell by 6.7% and 2.4%, respectively.

According to a recent report from Asia Europe Clean Energy (Solar) Advisory Company, China housed 530,000 tons of polysilicon, an essential component in solar PV manufacturing, in 2021, which is expected to reach 1.1-1.2 million tons in 2022, 2.2-2.5 million tons in 2023, and 3-4 million tons in 2024. Wafer, cell, and module production capacity are predicted to reach 550-600 GW by the end of 2022.

Anti-dumping duties levied on components such as electro-galvanized steel, fluoro backsheets, textured tempered glass, and EVA encapsulant has added to domestic module manufacturing costs. Additionally, the surge in aluminum, copper, and silver prices have significantly driven module prices. Increasing commodity prices have also impacted the project’s power evacuation infrastructure cost.

For an in-depth look at the data, analysis, and charts, subscribe to our quarterly market report – Mercom India Solar Update. In addition, detailed solar import and export data by component types, suppliers, manufacturers, and developers are available in Mercom’s India Solar EXIM Tracker.