India added 448 MW of rooftop solar capacity, registering a 14% drop quarter-over-quarter (QoQ) in the third quarter (Q3) of the calendar year (CY) 2021, compared to 521 MW in Q2 2021. The numbers were revealed in Mercom India Research’s latest report, ‘India Rooftop Solar Market Report Q3 2021.’

Rooftop installations were up by 189% compared to the same period last year.

The total rooftop capacity installed in 9M 2021 stood at 1.3 GW, a 202% increase compared to the same period last year. The numbers were the highest recorded for the 9M period of a year.

At the end of Q3 2021, cumulative rooftop installations stood at 6.7 GW.

In Q3 2021, the residential sector led the growth for the second quarter in a row, making up for 54% of total rooftop installations. The commercial & industrial sector and the government sector followed with 44% and 2%, respectively.

The C&I segment has been showing constant growth over the past few quarters, but rising system costs have been worrying.

“The rooftop market is showing signs of recovery and back to pre-COVID levels. However, the rise in component costs and availability of materials is weighing heavily on the market, throttling growth. States have continued to put up restrictions on rooftop solar, making new development challenging,” said Raj Prabhu, CEO of Mercom Capital Group.

The Ministry of Power’s notification allowing net metering for prosumers with load up to 500 kW positively affected rooftop installations. Following the announcement, Rajasthan, Chhattisgarh, Karnataka, and Punjab also released their net metering regulations with a similar cap of 500 kW.

According to the report, tenders were floated for over 200 MW of rooftop solar projects, an increase of 62% QoQ and 125% during the same period last year.

The Kerala State Electricity Board accounted for 47% of the total tenders announced in the quarter, followed by the West Bengal State Electricity Distribution Company with 24%. Other nodal agencies accounted for 29% of the tenders in Q3 2021.

Gujarat remained on the top with 26% of cumulative solar installations, followed by Maharashtra and Rajasthan, respectively, with 14% and 10%.

Uttarakhand had the highest compounded quarterly growth rate of nearly 35%, followed by Maharashtra and Haryana with 31% and 29%, respectively.

One of the reasons for the downward trend in rooftop solar installations in Q3 2021 is the growing component prices after the second wave of the Covid-19 pandemic. Prices rose by 3.84% in Q1 2021, 3% in Q2, and 2.3% in Q3.

India had registered a 53% QoQ increase in rooftop solar installations in Q2 2021, the highest for any quarter, with 521 MW installations compared to 341 MW installed in Q1 2021.

Key Highlights from Mercom India Research’s India Rooftop Solar Market Report Q3 2021:

• In Q3 2021, India added 448 MW of rooftop solar, a decrease of 14% compared to 521 MW installed in Q2 2021. YoY installations increased by 189%
• In 9M 2021, India added 1.3 GW of rooftop solar, an increase of 202% compared to the same period last year
• The installations were the highest ever recorded in the 9M of a year
• The cumulative installed rooftop solar capacity in India stood at 6.7 GW at the end of Q3 2021
• In Q3 2021, the top 10 states accounted for approximately 83% of the cumulative rooftop solar installations
• Gujarat had the most rooftop installations in Q3 2021, followed by Maharashtra and Haryana

The Mercom India Research’s ‘India Rooftop Solar Market Report Q3 2021’ covers all facets of India’s rooftop solar market. For the complete report, visit https://mercomindia.com/product/q3-2021-india-rooftop-solar-market-update/.