Solar Investments Up by 49% QoQ in Q3 2021 as Development Activity Picked Up Speed

Investments in the Indian solar sector increased by 49%, in the third quarter (Q3) of the calendar year (CY) 2021, compared to Q2 2021. However, in a year-over-year (YoY) comparison, the investments increased by a massive 1,152%, according to Mercom India Research’s latest Q3 2021 India Solar Market Update.

Investments in the large-scale solar segment in Q3 2021 increased by 34% compared to Q2 2021.

The increase in investments in the solar sector is reflective of the increased project development activity that has recovered strongly from the previous quarter.

Investment Trends in Indian Solar Sector by Quarter ($ Billion)

The report states that in 9M 2021, investments in the solar sector experienced a 400% increase compared to the same period in 2020 which was severely affected by COVID-19 restrictions.


Some of the deals that grabbed the headlines in Q3 2021:

  • Adani Green Energy raised $750 million (~₹56.66 billion) by issuing its maiden ListCo senior green bonds.
  • Through its 100% subsidiary Azure Power Energy, Azure Power Global raised $414 million (~₹31.28 billion) 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.
  • Azure Power secured $163 million (~₹12.32 billion) syndicated financing from Mitsubishi UFJ Financial Group for a 300 MW solar project in Rajasthan, India.
  • ACME Solar raised around $334 million (~₹25.23 billion) for 12 solar projects through the issuance of offshore green bonds. US dollar-denominated green bonds will fund the debt investment.
  • Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIt) from KKR’s Virescent Infrastructure, raised ₹4.6 billion (~$62 million) from foreign and domestic investors. Alberta Investment Management Corporation (AIMCo), a Canada-based institutional investment manager, led the funding round. VRET’s initial portfolio comprises nine operational solar projects with an aggregate capacity of 395 MW. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat, and Rajasthan.
  • The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, approved a $50 million (~₹3.78 billion) loan facility to Italy-based Enel Green Power to develop a 300 MW solar project in Rajasthan. The project is being developed in Bikaner, Rajasthan, and is expected to be commissioned in December 2022.

Download executive summary for the Q3 2021 India Solar Market Update.