Report: India adds 10 GW Solar Capacity in 2021

According to Mercom India Research, India installed a record 10 gigawatts (GW) of solar capacity in the calendar year 2021, a 212 percent increase year on year (y-o-y).


  • According to the report, 3.2 GW of solar capacity installations were made by India in 2020.
  • According to the report, India’s cumulative solar installed capacity was at around 49 GW at the end of December 2021.
  • The report mentioned that in 2021, India added a total of 10 GW of solar power, the highest in a single year. In 2021, solar accounted for 62% of new power capacity additions, the largest power capacity shares ever.
  • Large-scale solar projects accounted for 83 percent of installations during the year, with a 230 percent y-o-y increase.
  • In 2021, rooftop installations increased by 138 percent y-o-y.
  • In 2021, the average project cost was also higher due to higher raw material, module, and freight costs.

Name of the report

‘Annual 2021 India Solar Market Update’ is the name of the report.

Top 3 States

As of December 2021, Rajasthan, Karnataka, and Andhra Pradesh were the top three states in terms of cumulative large-scale solar capacity, accounting for 50% of the country’s installations.

Rajasthan led capacity addition in 2021, with 4.5 GW of solar capacity installed.

Why was there a slowdown in Solar tender and auction activity in 2021?

Compared to 2020, Solar tenders dipped 4.3 percent y-o-y in 2021, while auctions fell by 2.6 percent. The slowdown in tender and auction was due to a delay in signing power-sale agreements (PSA) and a lack of clarity regarding applicable duties.

Prediction regarding 2022

The demand outlook for 2022 looks strong but the industry will face a lot of challenges which include import restrictions, basic customs duty, high component prices, and the GST in addition to supply chain issues across the globe.




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