The average system cost of large-scale solar projects fell again in the second quarter of 2025, continuing the steady downward trend. Indian TOPCon-based projects remain the most expensive, while Chinese mono PERC projects continue to come in at the lowest cost.

On a quarterly basis, costs declined across the board. Indian DCR TOPCon dropped 1.3%, Indian DCR mono PERC 1.2%, Indian TOPCon 1.6%, Indian mono PERC 3.5%, Chinese TOPCon 1.5%, and Chinese mono PERC 1.5%. Chinese mono PERC accounted for the lowest share of total project cost at 38.9%, while Indian DCR TOPCon stayed at the top at 61.9%.

The decline reflects weaker cell prices, a surge in imported TOPCon modules, and a slowdown in demand mid-quarter. Year over year, costs were lower across most categories, with the exception of DCR-compliant mono PERC, which increased by 4.8%. That increase underscores the persistent premium tied to domestic sourcing rules.

The shift to bifacial modules is now essentially complete. Monofacial options are no longer available on the market, and bifacial panels now come with 30-year warranties, compared to the earlier 25-year standard.

The cost of power conditioning units, primarily solar inverters, increased by 2.5% in the second quarter. Module mounting structure costs decreased by 11% due to lower steel prices, while other balance of system components remained unchanged.

With ALMM-II for solar cells set to take effect in June 2026, the market could face a shortage of compliant modules. This could likely drive prices higher and put pressure on project economics and scalability.

India installed 18 GW of solar capacity in the first half of 2025, representing a 31% year-over-year increase. By the end of June, cumulative capacity had reached 116.4 GW, underlining the sector’s strong growth momentum.

Mercom’s Q2 2025 India Solar Market Update report is 94 pages long and covers all facets of India’s solar market.

For the complete report,

visit: https://www.mercomindia.com/product/q2-2025-india-solar-market-update