According to the latest update of the Indian solar market for the third quarter of 2021 released by Mercom, the average cost of large-scale solar projects in the third quarter of 2021 (third quarter of 2021) is approximately 42.4 million rupees (approximately US$559,828)/MW.
Compared with the same period last year, the cost increased by 23%, when it was 34.5 million rupees (approximately US$455,322)/MW, which was an increase of 10% compared to the previous quarter (the second quarter of 2021), when the cost was about 38.6 million rupees (Approximately US$509,433) /MW.
The increase in the cost of large-scale systems in the third quarter of 2021 is mainly due to the increase in shipping costs for solar modules. Since the outbreak of Covid-19, freight rates have been on an upward trend, which has adversely affected the imports of solar modules in India. The shortage of containers is another problem, causing the problem of importing raw materials from China.
The rising trend of commodity prices, including steel, aluminum and copper, has also led to an increase in the cost of large-scale systems. The cost of aluminum profiles rose by 30-40% this quarter. The prices of silicon wafers and EVA sheets have also risen by 40-50%.
India added 2,835 megawatts of installed solar capacity in the third quarter of 2021, an increase of 14% compared to the 2,488 megawatts installed in the second quarter of 2021. These figures represent a significant year-on-year (YoY) increase of 547%.
According to the report, in the 9 million year of 2021, India has added more than 7.4 GW of installed solar capacity, which is an increase of 335% from the 1.73 GW of 9 million GW in 2020. As of the end of the third quarter of 2021, the cumulative installed capacity was 46.6 GW.
The average selling price of solar modules continues to rise. After major manufacturers started to cut production due to power restrictions in China, component prices soared along with raw material prices.
The report shows that the price of polycrystalline modules in China increased by 4% month-on-month, and the average selling price of monocrystalline PERC modules in China increased by 17% month-on-month. China's component prices have risen for six consecutive quarters, a trend that has never occurred in the past decade.
The surge in delays in the development of solar energy projects related to over-pricing has caused investors to cut expenditures, while ongoing supply chain issues hindered corporate development.
Solar module manufacturers believe that Chinese module prices are expected to remain high until the first quarter of 2022.
For the full report, please visit: https://mercomindia.com/product/q3-2021-india-solar-market-update
Arjun Joshi is a reporter for Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies in India and abroad. He holds a bachelor's degree in journalism, psychology and English electives from Garden City University in Bangalore. More articles from Arjun Joshi.