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Daily News Wrap-Up: RERC Denies Rebate for Cement Company’s Solar Project


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					</table><p>With the government reducing the Goods and Services Tax (GST) on several rooftop solar system components, installation costs under the PM Surya Ghar: Muft Bijli Yojana have declined by up to 10%, according to industry sources.</p>
<p>In September 2025, the Ministry of Finance <a href="https://www.mercomindia.com/project-development-to-become-cheaper-as-government-cuts-gst-on-solar-cells" target="_blank" rel="noopener">reduced</a> the GST rate on high-value system components such as solar modules, cells, and inverters. Other components, including mounting structures, wiring, protection equipment, and junction boxes, also saw tax-cost reductions, contributing to a broader decline in overall system prices.</p>
<p>The GST cut has also lowered engineering, procurement, and construction (EPC) costs, which were previously subject to higher tax rates, further easing installation expenses.</p>
<p>Installers said consumers planning to adopt rooftop solar can now expect a 7%–10% reduction in total system costs, a development likely to accelerate uptake, particularly in Tier-2 and Tier-3 cities.</p>
<p><strong>System Costs to go Down</strong></p>
<p>According to Radhika Choudary, Co-Founder and Director at <a href="https://freyrenergy.com/" target="_blank" rel="noopener">Freyr Energy</a>, for an average 2 kW-3 kW residential rooftop solar system, the GST rate cut translates to savings of around ₹8,000 (~$88.4) to ₹12,000 (~$132.6), depending on the type of modules and inverters used.</p>
<p>Installers note that before the GST reduction, a typical 2 kW-3 kW residential rooftop solar system in cost between ₹120,000 (~$1,326.2) and ₹140,000 (~$1,547.25), varying across states and component choices. After the GST rate was reduced to 5%, the cost of the same system has dropped to ₹108,000 (~$1,193.59) and ₹125,000 (~$1,381.48).</p>
<p>They say that consumer affordability is one of the biggest drivers of rooftop solar projects, and that reductions in system costs shorten payback periods and reduce upfront capital expenditure.</p>
<p>Alok Karwasra, Senior Vice President at <a href="https://solariumenergy.in/" target="_blank" rel="noopener">Solarium Green Energy</a>, said that rooftop solar system costs could go down by another ₹10,000 (~$110.5) if state subsidies are factored in.</p>
<p>A typical 3 kW system can generate 3,500–4,000 units annually, helping households save between ₹18,000 (~$198.9) to ₹22,000 (~$243.14) per year, depending on the state’s electricity tariffs. “Over a 20-year lifespan, the cumulative savings can range from ₹100,000–120,000 (~$1326.22) or higher,” said Choudary.</p>
<p>She added that a reduced system price also means consumers will pay lower equated monthly installments (EMIs) on their loans.</p>
<p>Installers say government subsidies and low-cost financing options could help consumers slash their electricity bills by a third.</p>
<p>Karwasra explained that opting for a loan under Jan Samarth, a digital portal linking 14 credit-linked government programs, helps consumers start saving from the very first month. “In case the EMI is equal to the consumer’s electricity bill, the consumer can achieve payback within 3 years. For the remaining project life, the consumer can get free electricity for the amount equivalent to the power bill.”</p>
<p><strong>PM Surya Ghar Targets</strong></p>
<p>India had set a target of 3.5 million households under the PM Surya Ghar program for FY 2026.</p>
<p>As of December 2025, the country has installed rooftop solar systems in 2,396,497 residential households under PM Surya Ghar, reaching nearly 24% of the 10 million target set for the financial year FY 2027. Installers are confident that, with strong policy incentives, falling component prices, and rising consumer awareness, India can meet the target.</p>
<p>India <a href="https://www.mercomindia.com/product/rooftop-solar-market-report-q3-2025" target="_blank" rel="noopener">added</a> a record 4.9 GW of rooftop solar capacity in the first nine months of 2025, a 161% year-over-year growth, according to Mercom India’s Q3 2025 India Rooftop Solar Market Report. Of these installations, close to 75% were in the residential segment.</p>
<p>Shreya Mishra, Co-Founder of <a href="https://www.google.com/aclk?sa=L&amp;pf=1&amp;ai=DChsSEwjLuoaFjMeRAxV0PYMDHeJ6OQkYACICCAEQABoCc2Y&amp;co=1&amp;ase=2&amp;gclid=Cj0KCQiA6Y7KBhCkARIsAOxhqtMo5ORZrEUoWV9al7y2mI_9_QEhUtQG_9ngbqgq4RhGqTNh2_FswI0aAr8QEALw_wcB&amp;cid=CAASWeRoi7I5ngXrGGgd6B8X9WW4BdPXsxDapVLyGHKPw-HnBS5CEI_jssSTJqLG9POvJPyk5dx-i_ulcgQtv-C5l2mhh0M-fkI0eftWn0VM91izJeTXvNRgnkgE&amp;cce=2&amp;category=acrcp_v1_32&amp;sig=AOD64_2A4ieOR9rPiWAUIYkXsMZD9h-mHg&amp;q&amp;nis=4&amp;adurl=https://www.solarsquare.in/go-solar?utm_term%3Dsolarsquare%26utm_campaign%3DDR_Search_Brand_AllCities_Jan13%26utm_source%3Dadwords%26utm_medium%3Dppc%26hsa_acc%3D1384667780%26hsa_cam%3D19566406052%26hsa_grp%3D152005427984%26hsa_ad%3D644801250633%26hsa_src%3Dg%26hsa_tgt%3Dkwd-831268040081%26hsa_kw%3Dsolarsquare%26hsa_mt%3De%26hsa_net%3Dadwords%26hsa_ver%3D3%26gad_source%3D1%26gad_campaignid%3D19566406052%26gbraid%3D0AAAAACamwb-wnsUVsUo22R3XAWrT-G1dv%26gclid%3DCj0KCQiA6Y7KBhCkARIsAOxhqtMo5ORZrEUoWV9al7y2mI_9_QEhUtQG_9ngbqgq4RhGqTNh2_FswI0aAr8QEALw_wcB&amp;ved=2ahUKEwjn5_2EjMeRAxUuS2cHHQkePVoQ0Qx6BAghEAE" target="_blank" rel="noopener">SolarSquare</a>, said that the GST reduction on solar equipment will be another tailwind for the PM Surya Ghar program.  “While solar has a great return on investment, the high upfront cost is the biggest barrier for middle-class Indian families to adopt solar.”</p>
<p>Solar will become more affordable with lower GST, coupled with subsidies and low-interest loans from public-sector banks, she said. This will drive installations in the residential segment.</p>
<p>Karwasra noted that “With the current trend, the target of reaching 3.5 million in FY26 is possible, given the push and support from both the Ministry of New and Renewable Energy and REC.”</p>
<p>He added that installations are rising in more states than in the previous financial year, with state governments now offering subsidies.  “Vendor registrations and penetration are also increasing significantly month-on-month, indicating greater awareness and adoption of rooftop solar systems.”</p>
<p><strong>Bottlenecks</strong></p>
<p>While rooftop installers are confident they can meet the targets, they also highlight issues that could slow adoption.</p>
<p>Choudary noted that streamlining net-metering approvals, accelerating subsidy disbursal, and adopting consistent state-level guidelines would significantly reduce installation timelines.</p>
<p>She added that there is an urgency to increase the supply and availability of domestic content requirement (DCR)-compliant modules to prevent shortages.  “Standardized quality checks and digital monitoring mechanisms will also enhance system reliability and long-term consumer confidence.”</p>
<p>Karwasra said that, currently, project commissioning takes up to 12 weeks and can be reduced to 3-4 weeks by streamlining the distribution companies’ processes for metering documentation and installations, seamless financing under Jan Samarth, and quicker loan and subsidy disbursements.</p>
<p>State government subsidies, on top of Central financial assistance and the recent GST rate cut on solar components should boost rooftop installations in the coming months.</p>


Rooftop Solar Gets Cheaper as GST Cut Shortens Payback Period for Consumers


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					</table><p>The average system cost of large-scale solar projects <a href="https://www.mercomindia.com/q3-2025-sees-cost-drop-in-large-scale-solar-systems-across-module-types" target="_blank" rel="noopener">remained</a> low in the third quarter of 2025, with cost reductions seen across all module technologies. Projects using Indian TOPCon modules were the premium option in terms of cost, whereas projects using Chinese mono PERC modules remained the most economical. Costs fell across module technologies during the quarter. Projects using Indian mono PERC and TOPCon modules recorded the steepest quarter-over-quarter drop of 1.4%. On a year-over-year (YoY) basis, these projects also saw declines of 0.7% and 0.3% in costs.</p>
<p>The Union Cabinet <a href="https://www.mercomindia.com/cabinet-approves-rare-earth-permanent-magnets-manufacturing-program" target="_blank" rel="noopener">approved</a> a program to promote the manufacturing of sintered rare earth permanent magnets (REPM) used in electric vehicles and renewable energy, with a financial outlay of ₹72.8 billion (~$815.73 million). The program aims to set up 6,000 metric tons per annum of integrated REPM manufacturing in India. The total financial outlay of the program comprises sales-linked incentives of ₹64.5 billion (~$722.73 million) on REPM sales for five years and a capital subsidy of ₹7.5 billion (~$84.03 million). The program envisions allocating the total capacity to five beneficiaries through a global competitive bidding process.</p>
<p>The Telangana Cabinet <a href="https://www.mercomindia.com/telangana-to-create-third-discom-procure-3-gw-of-solar" target="_blank" rel="noopener">gave</a> the go-ahead to create a third electricity distribution company (DISCOM). The new DISCOM will be responsible for the supply of power to farmers, lift-irrigation programs, beneficiaries of Mission Bhagiratha, street lighting, rural and urban public utilities, and various welfare programs. Telangana now has two DISCOMs—Northern Power Distribution Company and Southern Power Distribution Company. Modelled on Bengaluru’s system, Hyderabad will shift to a full underground electricity cable system at an estimated cost is ₹147.25 billion (~$1.65 billion). All utility cables—electricity, T-Fiber, and private network cables will be moved underground. The city will be divided into three power circles for its implementation.</p>
<p>Lending institutions are <a href="https://www.mercomindia.com/banks-roll-out-low-cost-faster-green-loans-to-drive-ci-solar-adoption" target="_blank" rel="noopener">reporting</a> a sharp rise in demand for clean-energy financing from India’s commercial and industrial (C&amp;I) sector, as companies ramp up investments in rooftop solar, green energy open access, and energy efficiency measures to lower operating costs and advance carbon-reduction goals. With electricity expenses representing a substantial portion of their overhead, C&amp;I consumers are increasingly opting for specialized green-loan products that offer lower interest rates, quicker processing, and, in many cases, collateral-free terms.</p>
<p>The Delhi Electricity Regulatory Commission <a href="https://www.mercomindia.com/delhi-regulator-approves-bses-rajdhanis-power-sale-agreement-with-seci" target="_blank" rel="noopener">approved</a> the power sale agreement between BSES Rajdhani Power and Solar Energy Corporation of India (SECI) for the procurement of 1,500 MW of solar power integrated with a 750 MW/3,000 MWh energy storage system (ESS) under the interstate transmission system (ISTS) Tranche XVII. SECI floated a tender in August 2024 to set up 2,000 MW of solar capacity, combined with 1,000 MW/4,000 MWh of ESS.</p>
<p>The Calcutta Electric Supply Corporation (CESC) <a href="https://www.mercomindia.com/cesc-invites-bids-to-develop-600-mw-wind-solar-hybrid-projects" target="_blank" rel="noopener">invited</a> bids to develop 600 MW of ISTS-connected wind-solar hybrid projects under a build-own-operate model. The last date to submit bids is January 19, 2026. Bids will be opened on January 20. The scope of work covers the setting up of the wind-solar hybrid projects, including the transmission network up to the interconnection point. It also entails identifying the land, installing and owning the projects, and obtaining the approvals. The power generated from the projects will help CESC meet its renewable power and renewable consumption obligations.</p>
<p>Uttar Pradesh Jal Nigam (Urban) <a href="https://www.mercomindia.com/uttar-pradesh-jal-nigam-floats-tender-for-om-of-1-5-mw-solar-project" target="_blank" rel="noopener">issued</a> a tender for the operation and maintenance (O&amp;M) of a 1.492 MW grid-connected ground-mounted solar project at the Bharwara sewage treatment plant in the Lucknow district. The estimated contract value is ₹18.97 million (~$212,523.57). Bids must be submitted by December 20, 2025. Bids will be opened on December 22. The O&amp;M work will include providing all the labor, materials, tools, plants, equipment, and their transport. It also involves handling material wastages, carriage and cartage, and hoisting, setting, fitting, and fixing of the necessary components.</p>
<p>Adani Energy Solutions <a href="https://www.mercomindia.com/adani-energy-bags-transmission-project-to-evacuate-2-5-gw-of-renewable-energy" target="_blank" rel="noopener">received</a> a letter of intent from PFC Consulting to establish a transmission system to evacuate 2.5 GW of energy from a potential renewable energy zone in Khavda, Gujarat, under Phase V (8 GW): Part C. The project includes the establishment of a 2,500 MW high-voltage direct current system of approximately 1,200 circuit kilometers (ckm) between KPS III and South Olpad, taking AESL’s overall transmission network to 27,905 ckm and 97,236 MVA of transformation capacity.</p>
<p>Sterling and Wilson Renewable Energy <a href="https://www.mercomindia.com/sterling-and-wilson-wins-epc-contract-for-240-mw-solar-project-in-south-africa" target="_blank" rel="noopener">announced</a> it has won a turnkey engineering, procurement, and construction (EPC) contract for a 240 MW solar project in South Africa, valued at about ₹13.13 billion (~$148.08 million). This contract is the company’s second international project win from South Africa in the current fiscal year, increasing its international implementation portfolio in the region to four solar projects with four developers. With this award, the company’s total EPC order inflows for the fiscal year have now exceeded ₹50.88 billion (~$573.72 million).</p>
<p>Waaree Group <a href="https://www.mercomindia.com/waaree-group-secures-10-mwh-bess-order-in-tamil-nadu" target="_blank" rel="noopener">announced</a> that it secured a 10 MWh order for battery energy storage systems from an infrastructure development company for deployment in Tamil Nadu. The company is scaling domestic battery storage manufacturing with a 4 GWh lithium-ion cell production line and a 5 GWh pack-and-container facility, aimed at supporting both utility-scale and commercial and industrial requirements. These facilities are designed to enable fully indigenous systems, reducing reliance on imports.</p>
<p>Grasim Industries, an Aditya Birla Group company, will <a href="https://www.mercomindia.com/grasim-to-procure-solar-power-from-gmr-energys-10-mw-project" target="_blank" rel="noopener">invest</a> ₹36 million (~$403,320.60) to acquire a 29% equity stake in GMR Kalinga Solar Power, a special-purpose vehicle of GMR Energy. GMR Kalinga is developing a 10 MW solar project from which Grasim will procure power for its chemical manufacturing facility in Ganja, Odisha. The procurement of power from GMR Kalinga will help Grasim optimize its power costs and comply with captive power consumption requirements. The acquisition is expected to be completed within 30 days of the share purchase and shareholders’ agreements.</p>
<p>Pune-based battery-as-a-service company BatteryPool <a href="https://www.mercomindia.com/ev-charging-platform-batterypool-raises-%E2%82%B980-million-in-pre-series-a-round" target="_blank" rel="noopener">raised</a> ₹80 million (~$895,957) in a pre-series A round led by Inflection Point Ventures. Indian Angel Network, Chennai Angels, and Keiretsu Forum also participated in this round, along with high-net-worth individuals. BatteryPool said it will utilize the funding to scale its battery fleet by 10 times over the next 18 months to strengthen its nationwide footprint. Ashwin Shankar, Founder at BatteryPool, said the company is focused on strengthening its product ecosystem, building battery access, improving the user experience, and supporting the everyday EV rider.</p>
<p>Switzerland-headquartered solar solutions provider Candi Solar <a href="https://www.mercomindia.com/candi-solar-raises-58-5-million-in-ifc-led-funding-round" target="_blank" rel="noopener">secured</a> $58.5 million in a funding round led by the global development institution, International Finance Corporation (IFC), to deliver clean, affordable solar solutions in India and South Africa. This syndicated debt funding facility is Candi Solar’s largest to date, increasing the company’s total capital raised to $200 million. The IFC investment comprises $6.5 million from the Canada-IFC Blended Climate Finance Platform, up to $42 million equivalent from IFC’s own account, partially supported by its managed co-lending portfolio program, and a concessional loan of up to $10 million, with the development institution acting in its capacity as the Climate Investment Funds’ Clean Technology Fund’s implementing agency.</p>
<p>Utility-scale energy storage firm Fluence Energy <a href="https://www.mercomindia.com/fluence-misses-analysts-estimates-in-q4-as-revenue-dips-15-yoy" target="_blank" rel="noopener">recorded</a> a revenue of $1.04 billion in the fourth quarter of the fiscal 2025, a 15% year-over-year decrease. The revenue fell short of analysts’ estimates by $350 million. The company saw an earnings per share of $0.13, missing estimates by $0.07. Adjusted earnings before interest, taxes, depreciation, and amortization stood at $72.2 million, a 17% decrease from $86.9 million for the same quarter last year. The company’s net income during the quarter was $24.1 million, a 64% YoY decline from $67.7 million.</p>
<p>China <a href="https://www.mercomindia.com/chinas-solar-growth-rebounds-in-october-with-12-6-gw-new-capacity" target="_blank" rel="noopener">added</a> 12.6 GW of solar power capacity in October 2025, rebounding after dipping to almost a three-year low in August. This is also a clear step up from September’s 9.66 GW, based on the National Energy Administration’s data. Even so, October’s buildout was still well below the 20.4 GW recorded in the same month last year. The final quarter is usually the busiest stretch for China’s solar industry, with project completions accelerating toward December.</p>
<p>U.S.-based solar solutions provider PosiGen <a href="https://www.mercomindia.com/solar-solutions-firm-posigen-files-for-bankruptcy-citing-us-tax-credit-cuts" target="_blank" rel="noopener">filed</a> proceedings under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The company reported assets and liabilities of $100 million to $500 million, respectively. PosiGen’s filing indicates that it has funds available for distribution to unsecured creditors. It stated that the current U.S. administration’s cuts to solar energy tax credits and subsidies had affected its cash flow. PosiGen had initially focused on scaling development capacity. However, the company’s $600 million first-lien credit facility was fully drawn by July 2025, and lenders were unwilling to commit additional capital.</p>


Daily News Wrap-Up: Q3 Sees Lower System Costs for Large-Scale Solar Projects


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					</table><p>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.</p>
<p>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%.</p>
<p>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.</p>
<p>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.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-84177 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost.png" alt="" width="994" height="567" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost.png 994w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost-300x171.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost-768x438.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost-650x371.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost-624x356.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/system-cost-600x342.png 600w" sizes="auto, (max-width: 994px) 100vw, 994px" /></a></p>
<p>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.</p>
<p>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.</p>
<p>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&#8217;s strong growth momentum.</p>
<p>Mercom&#8217;s Q2 2025 India Solar Market Update report is 94 pages long and covers all facets of India&#8217;s solar market.</p>
<p>For the complete report,</p>
<p>visit<strong><em>: </em></strong><a href="https://www.mercomindia.com/product/q2-2025-india-solar-market-update" target="_blank" rel="noopener">https://www.mercomindia.com/product/q2-2025-india-solar-market-update</a></p>


Large-Scale Solar System Costs Across Module Technologies Drop in Q2 2025


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					</table><p>The average cost of large-scale solar power projects in India declined by 13.4% year-over-year (YoY) in the third quarter (Q3) of 2023 following the drop in module prices.</p>
<p>Large-scale solar system costs fell for the third quarter in a row. The average project costs decreased by 4.9% quarter over quarter (QoQ).</p>
<p>These findings were published in Mercom India Research&#8217;s recently released <a href="https://www.mercomindia.com/product/q3-2023-india-solar-market-update" target="_blank" rel="noopener"><strong>Q3 2023 India Solar Market Quarterly Update</strong></a><strong><u>.</u></strong></p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-60957 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001.png" alt="Average Large-Scale Solar System Cost Chart001" width="913" height="456" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001.png 913w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001-300x150.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001-768x384.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001-650x325.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001-624x312.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Average-Large-Scale-Solar-System-Cost-Chart001-600x300.png 600w" sizes="auto, (max-width: 913px) 100vw, 913px" /></p>
<p>The lower system costs mean CAPEX savings and higher returns on investment for project developers.</p>
<p>The average selling price of Chinese mono PERC modules fell 29% QoQ and 52% YoY.</p>
<p>The MNRE <a href="https://www.mercomindia.com/mnre-almm-exemption-solar-projects-march-31-2024" target="_blank" rel="noopener">suspended</a> the Approved List of Models and Manufacturers (ALMM) order, allowing developers to import low-cost modules until March 31, 2024.</p>
<p>As the deadline approaches, developers have ramped up module procurement at cheaper prices from China and other Southeast Asian countries to commission projects on time.</p>
<p>India <a href="https://www.mercomindia.com/indian-solar-exports-surge-q3-2023" target="_blank" rel="noopener">imported</a> solar cells and modules totaling $1.2 billion (~₹101.6 billion) in Q3 2023, a 31% increase from $926.6 million (~₹76.6 billion) in Q2. Imports were up 208% YoY from $394 million (~₹32.5 billion).</p>
<p>Solar cells accounted for nearly 41% of the quarter&#8217;s imports compared to 55% in Q2 2023, whereas solar modules&#8217; import share increased by 59% from 45%.</p>
<p>The prices of power conditioning units fell 3.8% QoQ. During the quarter, the industry gradually shifted towards central inverters over string inverters for their projects.</p>
<p>During Q3 2023, India&#8217;s capacity additions were <a href="https://www.mercomindia.com/india-adds-5-6-gw-solar-47-yoy-drop" target="_blank" rel="noopener">down</a> by over 34% YoY, with 1.9 GW installed, of which utility-scale installations accounted for over 1.4 GW, down nearly 43% YoY.</p>
<p>India&#8217;s cumulative installed solar capacity, including rooftop solar installations, surpassed 69 GW as of September 2023.</p>
<p>Mercom&#8217;s Q3 2023 India Solar Market Quarterly Update is 75 pages long and covers all facets of the Indian solar market and a detailed analysis of the project cost trends. For the complete report, <strong>visit <a href="https://www.mercomindia.com/product/q3-2023-india-solar-market-update" target="_blank" rel="noopener">https://www.mercomindia.com/product/q3-2023-india-solar-market-update</a></strong></p>


Average Cost of Large-Scale Solar Projects Fell 13% YoY in Q3

<p>According to Mercom’s recently released <a href="https://mercomindia.com/product/q2-2021-india-solar-market-update/" target="_blank" rel="noopener">Q2 2021 India Solar Market Update</a>, the average cost of large-scale solar projects in the second quarter of 2021 (Q2 2021) was ₹38.6 million (~$529,036)/MW.</p>
<p>The cost increased by 12% when compared to the same period <a href="https://mercomindia.com/average-cost-solar-fell-q2-2020/" target="_blank" rel="noopener">last year</a> when it was ₹34 million (~$455,532)/MW and a 5% rise from the <a href="https://mercomindia.com/higher-module-prices-raise-large-scale-rooftop-cost/" target="_blank" rel="noopener">previous quarter</a> (Q4 2020) when the cost was about ₹35.3 million (~$488,255)/MW.</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28740" src="https://mercomindia.com/wp-content/uploads/2021/09/Q2-2021-Average-Large-Scale-Solar-Project-Cost-per-MW.png" alt="Q2 2021 Average Large Scale Solar Project Cost per MW" width="640" height="432" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Large-Scale-Solar-Project-Cost-per-MW.png 640w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Large-Scale-Solar-Project-Cost-per-MW-300x203.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Large-Scale-Solar-Project-Cost-per-MW-624x421.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Large-Scale-Solar-Project-Cost-per-MW-600x405.png 600w" sizes="auto, (max-width: 640px) 100vw, 640px" /></p>
<p>The costs have soared due to the rise in the component costs led by modules and other commodities, along with a shortage of some raw materials. The global steel prices surged in the first four months of 2021. But steel producers struggled to supply as the production was low due to a shortage of iron ore, the raw material used to produce steel.</p>
<p>Meanwhile, the average cost per MW for rooftop solar installations was around ₹39.6 million (~$541,942)/MW, up 8% from the same period last year when costs stood at ₹36.5 million (~$489,027). The average cost for setting up rooftop solar systems was ₹38 million (~$524,445)/MW in the previous quarter, up roughly 4% quarter-over-quarter (QoQ).</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28739" src="https://mercomindia.com/wp-content/uploads/2021/09/Q2-2021-Average-Rooftop-Solar-System-Cost-in-India-per-MW.png" alt="Q2 2021 Average Rooftop Solar System Cost in India per MW" width="562" height="368" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Rooftop-Solar-System-Cost-in-India-per-MW.png 562w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Q2-2021-Average-Rooftop-Solar-System-Cost-in-India-per-MW-300x196.png 300w" sizes="auto, (max-width: 562px) 100vw, 562px" /></p>
<p>Increasing solar module ASPs continued in Q2 2021, driven by expensive polysilicon and higher raw material prices. Freight charges have remained high since last year due to shipping container shortages and global logistical challenges.</p>
<p>The container shortage issue has not yet been resolved, resulting in high freight charges, adversely impacting module prices. The module prices had surged due to the supply-demand gap, adding more financial burden on rooftop solar developers.</p>
<p>The rooftop solar sector has been seeing better financing opportunities with a reduction in the cost of debt, increased availability of equity, and the overall cost of financing going down. Q2 also saw many government tenders being issued, indicating a demand for rooftop solar in this segment.</p>
<p>However, bucking the trend, the bids have been <a href="https://mercomindia.com/tariff-neemuch-solar-auction-aberration/" target="_blank" rel="noopener">trending</a> down in the recent auctions, which is a cause for concern in the industry.</p>


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