Investments in the Indian Solar Sector Increased by 254% in 2021

Investments in the Indian solar sector increased by an impressive 254% in the calendar year (CY) 2021 compared to CY 2020, according to Mercom India Research’s latest 2021 Q4 and Annual India Solar Market Update.

Investments in the large-scale solar segment in 2021 were up by 278% compared to 2020. The rooftop solar segment witnessed a 150% increase in investments compared to the previous year.

Investments through corporate funding in 2021 increased by 202% compared to 2020.

The increase in investments in the solar sector in 2021 is reflective of the increased project development activity after the Indian solar industry recovered strongly from the disruptions caused by COVID-19 in 2020.

Fourth Quarter (Q4) 2021

Investments in the solar sector declined by 14%, in the fourth quarter (Q4) of CY 2021, compared to Q3 2021. However, in a year-over-year comparison, the investments increased by 109%.

Large-scale solar and rooftop solar segment investments dipped 6% and 4%, respectively, compared to the previous quarter.

Investments through corporate funding in Q4 2021 fell by 46% compared to the previous quarter.

The investments in Q4 2021 fell in line with the lower installations during the quarter, which was down 7% compared to Q3 2021. Installations were impacted as projects in Rajasthan are awaiting the Supreme Court’s ruling on the transmission lines that were to run through the priority or potential territory of the Great Indian Bustard (GIB) habitat.

Investments in Indian Solar Sector 2017-2021

Some of the deals that grabbed the headlines in 2021:

  • Adani Green Energy raised $750 million by issuing its maiden ListCo senior green bonds.
  • Independent renewable power producer ReNew Power received $610 million in net proceeds from the SPAC deal, including funds from RMG II’s former trust account and private placement in public equity.
  • ReNew Power raised $585 million through green bonds listed on the Global Securities Market (GSM) of India International Exchange at GIFT International Financial Services Centre (IFSC).
  • Through its 100% subsidiary Azure Power Energy, Azure Power Global raised $414 million through dollar green bonds. The bond issuance drew interest from global investors, with more than 60% of the issuance placed with US and European investors.
  • Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure, raised a total of $288.4 million through listed non-convertible debentures (NCD) and long-term debt financing.

Mercom’s 2021 Q4 and Annual India Solar Market Update report covers all facets of India’s solar market. For the complete report, visit: