Solar Investments in India Back to Pre-Pandemic Levels, Up 119% in Q2 2021

The investments in the Indian solar sector increased by 119% quarter-over-quarter, with over $2 billion in the second quarter (Q2) of the calendar year (CY) 2021. However, in a year-over-year (YoY) comparison, the investments increased by a staggering 2,170% compared to the same period amid the pandemic last year. The data was revealed in Mercom India Research’s latest Q2 2021 India Solar Market Update.

The second wave of the Covid-19 pandemic also impacted the overall investment scenario in the country in Q2 2021, but it was not as bad as experienced last year. However, investments in the solar sector were back to the pre-pandemic levels boosted by the new manufacturing facilities announced in the quarter.

According to the report, investments in the utility-scale solar segment were approximately $1 billion in Q2 2021, an increase of 17% compared to Q1 2021. Meanwhile, the rooftop segment saw investments increase by 73% compared to the preceding quarter.

There were also investments in the manufacturing sector, with companies expanding their capacities following the announcement of the Basic Customs Duty (BCD) on imported modules and cells coupled with the enforcement of the Approved list of Models and Manufacturers (ALMM) clause for projects to be implemented by the government.


Investments in the first half (1H) of 2021 surged to over $3 billion, increasing by 210% compared to the same period last year.

Investments in Indian Solar Sector by Quarter ($ Billion)

Deal Highlights

Some of the deals that grabbed the headlines in Q2 2021:


  • Adani Green Energy Limited signed a share purchase agreement to acquire a 100% stake in SB Energy India from Soft Bank Group (80%) and Bharti Group (20%). The transaction values SB Energy India at an enterprise valuation of about $3.5 billion (~₹47 billion).
  • ReNew Power secured $585 million (~₹43.5 billion) through green bonds listed on the Global Securities Market of India International Exchange at GIFT International Financial Services Centre. The bonds have a maturity period of 7.25 years and are assigned expected ratings of BB- (with a positive outlook) by Fitch Ratings and Ba3 rating by Moody’s investor services. These are priced competitively at 4.50% per annum.
  • The distributed solar company, Fourth Partner Energy, raised $125 million (~₹9.3 billion) in equity funding. Norwegian Investment Fund Norfund brought in $100 million (~₹7.4 billion) while existing shareholders, the Rise Fund, invested $25 million (~₹1.8 billion).
  • CDC Group, a UK government-owned financial development institution, announced a ₹2.5 billion (~$33.44 million) investment into distributed solar energy company Fourth Partner Energy. The capital from CDC will be in the form of non-convertible debentures.