Investments in the Indian Solar Sector Totaled $2 Billion in Q3 2022

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Investments in the Indian solar sector in the third quarter (Q3) of the calendar year (CY) 2022 totaled $2 billion (~₹161.1 billion), a 30% quarter-over-quarter (QoQ) decrease compared to the $2.9 billion (~₹220.6 billion) in Q2 2022. Investments were down 45% year-over-year (YoY) from $3.7 billion (~₹271.2 billion).

The figures were revealed in Mercom India Research’s latest report, Q3 2022 India Solar Market Update.

In Q3 2022, solar installations fell by 32.5% QoQ, with several large projects postponed to future quarters, directly resulting in lower investments. In addition, lower manufacturing investments in the quarter also affected the overall totals.

Investments Q3 2022 Chart

The commissioning delays of ongoing solar projects and the uncertainty over the Great Indian Bustard issue in Rajasthan led to a significant drop in investments in the quarter.


Major large-scale solar developers experienced the highest equity investment influx. Hero Future Energies received the largest chunk of investments totaling $450 million (~₹35.9 billion) during the quarter.

Top deals that grabbed the headlines in Q3 2022

Independent power producer ReNew Power announced a partnership with twelve international lenders for what is deemed to be the largest External Commercial Borrowings (ECB) project finance loan totaling $1.1 billion (~₹87.7 billion) in India’s renewables sector for any single project. The loan has been tied through creating a special purpose vehicle led by Netherlands-based Dutch multinational bank Rabobank. The company aims to expand its total renewable portfolio by availing the loan.

Power Finance Corporation (PFC) signed a loan agreement for ¥30 billion (~$220.83 million) with Japan Bank for International Cooperation (JBIC). The long-term facility to PFC is under the JBICs initiative titled ‘Global action for Reconciling Economic growth and Environmental preservation,’ under which JBIC provides financing for projects which ensure the effective reduction of greenhouse gas emissions and conservation of the global environment.

Global investment firm Kohlberg Kravis Roberts (KKR) and the Hero Group signed a definitive agreement to invest $450 million (~₹36.6 billion) in Hero Future Energies, the renewable arm of the Hero Group.

India-focused renewable energy platform Continuum Green Energy raised $350 million (~₹27.9 billion) from two marquee global institutional investors to finance the expansion of its clean energy projects. The fund-raising round allowed the investors to issue an additional $50 million (~₹3.99 billion) on fulfilling certain conditions.

Solar Ethyl Vinyl Acetate (EVA) manufacturer Navitas Alpha Renewables raised ₹70 million (~$866,041) in a seed round led by investment advisory firm Niveshaay with participation from Madhusudan Sarda, IVY Growth Associates, and others. The funding will add around 750 MW of encapsulant capacity and strengthen the company’s R&D initiatives.

Reliance New Energy, a wholly-owned subsidiary of Reliance Industries, acquired a 20% stake for $12 million (~₹976.07 million) in California-headquartered Caelux Corporation, a company developing perovskite-based solar technology to enhance module efficiency. The partnership is expected to help Reliance produce higher efficiency and low-cost solar modules at its Jamnagar, Gujarat-based gigafactory, where an integrated photovoltaic plant is being set up.

Solar Energy-focused deep tech startup Renkube secured ₹24 million (~$300,000) in a seed round led by CIIE.CO, a startup incubator established by IIM Ahmedabad. JITO Angel Network and K4 Forum Mumbai Network participated in the round. Halliburton Labs, a wholly-owned subsidiary of American hydraulic fracturing operations company Halliburton, also took part in the funding round via Renkube’s selection to its clean energy accelerator.

Mercom’s Q3 2022 India Solar Market Update covers all facets of India’s solar market. For the complete report, visit: https://mercomindia.com/product/q3-2022-india-solar-market-update/