India added 2,488 MW of solar capacity in the second quarter (Q2) of the calendar year (CY) 2021, an increase of 19% quarter-over-quarter (QoQ) as against 2,090 MW established in Q1 2021. Solar establishments surged by 1,114% year-over-year (YoY) compared to 205 MW added in Q2 2020. Covid-19 pandemic adversely impacted the solar installations in Q2 2020. The capacity increase in Q2 2021 was the highest in a quarter since Q2 2018. The total solar installations at the end of Q2, 2021 stood at 43.6 GW. In the first half (1H) of 2021, India added 4,578 MW of solar capacity, rising 251% over the corresponding period last year, exceeding installations in all of 2020. As per the report by the media, the solar installations grew despite the second wave of the Covid-19 pandemic and the lockdown inflicted by several states during 1H. The increase was attributed to targeted lockdowns this year, allowing the solar industry to adequately deal with the contingencies. The report anticipates solar establishments in the range of 8-9 GW in the calendar year (CY) 2021 since the industry did much better during the second wave of the Covid-19 pandemic. The report states that the average selling costs of solar modules have increased for the fifth quarter in a row, and this trend would proceed for another couple of quarters. Likewise, freight costs are also surging, exhibiting no signs of recovery in the short term. In the last six months, the soaring price trends in commodities, comprising aluminium, steel and copper, have begun to take a toll on solar developers. Additionally, the increase in steel costs has exacerbated the situation for engineering, acquisition, and construction players and module companies in the solar space. As per the report, the large-scale solar project development pipeline reached 52.8 GW, with 28 GW of projects tendered and pending auction at the end of Q2 2021. Gujarat and Rajasthan were the first two states in installations, accompanied closely by Uttar Pradesh and Andhra Pradesh. The top ten states estimated 95% of the total establishments during the quarter. As per the report, new solar capacity expansions in 1H 2021 were the highest ever for any year, at 53% of the total power capacity increases. Renewables, involving solar, wind, and hydro, made up 71% of the total capacity increase in 1H 2021. Image Source Also read: India to increase renewable capacity to 68 GW in five years Also read: India installs 97 GW grid-interactive renewable energy as of June 30