Investments in the Indian solar sector stood at approximately $100 million (~₹7.46 billion) in the second quarter of 2020 (Q2 2020), down 90% from the previous quarter, according to Mercom’s Q2 2020 India Solar Market Update.
Investments were 96% lower year-over-year (YoY) compared to Q2 2019. The COVID-19 pandemic has severely impacted the solar sector in India, and the decline in installations was primarily due to supply chain disruptions and lack of laborforce for project development. There were no manufacturing projects announced in the quarter.
Investments in Q2 were the lowest ever recorded in a quarter since Q1 2017, as far back as Mercom’s data goes.
In Q2 2020, India added just 205 MW of solar installations, a decline of 81% compared to 1,090 MW installed in Q1 2020. Year-over-year, the installations declined 86% compared to 1,510 MW installed in Q2 2019.
At the end of Q2 2020, the cumulative solar installed capacity in India was approximately 37 GW.
MYSUN, a technology platform provider for rooftop solar energy solutions, raised ₹320 million (~$4.2 million) from its existing investors as part of its pre-series A round.
Complete funding and M&A transaction list and details can be found in Mercom’s 1H and Q2 2020 Solar Funding and M&A Report.
According to data from the report, total corporate funding (including venture capital funding, public market, and debt financing) in 1H of 2020 came to $4.5 billion compared to $6 billion in 1H 2019, a 25% drop year-over-year (YoY).
Meanwhile, global VC funding (venture capital, private equity, and corporate venture capital) in the solar sector was 74% lower with $210 million compared to $799 million raised in the first half of 2019.
Investments in the Indian solar industry in the first quarter stood at $970 million, according to Mercom’s Q1 2020 India Solar Market Update.