India installed over 389 MW of rooftop solar capacity in the second quarter (Q2) of the calendar year (CY) 2022, a decline of 15% compared to 456 MW installed in the previous quarter. On a year-over-year (YoY) basis, installations fell by 25% from the 521 MW installed in the same period last year.

The first half (1H) of 2022 saw 845 MW of rooftop solar capacity added, a 2% decrease compared to the same period last year.

The latest installation data was revealed in Mercom’s newly released report– Mercom India Rooftop Solar Market Report Q2 2022.

Rooftop solar accounted for 10% of total solar installations during the quarter. India’s cumulative rooftop solar capacity now stands at over 7.9 GW at the end of Q2 2022.

“Rooftop installation levels in the first half of the year have been solid, but supply chain issues and the resulting higher component costs and the basic customs duty took a toll on the market in the second quarter. Rooftop project costs have risen for six quarters in a row. But the economic case for rooftop solar is stronger than ever, and we expect the market to show strength going forward,” said Raj Prabhu, CEO of Mercom Capital Group.

The demand for rooftop solar has been growing in the commercial and industrial (C&I) segment, primarily driven by cost savings and attractive return on investments.

About 50% of installations occurred in the industrial segment, followed by approximately 35%, 13%, and 2% in the commercial, residential, and government segments.

Around 63% of rooftop solar installations were carried out under the capital expenditures (CAPEX) model in Q2 2022. The operating expenditures/renewable energy services companies (OPEX/RESCO) model accounted for 37% of the projects.

Nearly 49% of the 262 MW of rooftop solar tenders floated were empanelment tenders. The tenders were released in Rajasthan, Madhya Pradesh, Punjab, Tamil Nadu, Puducherry, Nagaland, Manipur, Maharashtra, and Karnataka.

Over 73% of rooftop solar installations were in the top 10 states at the end of Q2 2022. Gujarat led the list, adding over 50 MW of rooftop solar capacity, accounting for 13% of the rooftop solar installations during the quarter.

Mercom’s report also includes comprehensive details of net metering policies across all Indian states and Union Territories.

Key Highlights from Mercom India Research’s India Rooftop Solar Market Report Q2 2022

• In 1H 2022, rooftop solar installations totaled 845 MW
• In Q2 2022, India added 389 MW of rooftop solar capacity
• Cumulative rooftop solar installations reached 7.9 GW as of Q2 2022
• The top 10 states cumulatively accounted for nearly 73% of rooftop solar capacity
• In Q2 2022, around 50% of rooftop solar installations came from the industrial segment, followed by approximately 35%, 13%, and 2% in commercial, residential, and government segments
• Gujarat was the top state for cumulative rooftop solar installations, followed by Maharashtra and Rajasthan

The Mercom India Rooftop Solar Report Q2 2022 is 54 pages and covers all facets of India’s rooftop solar market. For the complete report, visit:  https://mercomindia.com/product/rooftop-solar-market-report-q2-2022/