+
Average cost of large scale solar projects surges 12% in Q2 2021
POWER & RENEWABLE ENERGY

Average cost of large scale solar projects surges 12% in Q2 2021

The average cost of large-scale solar projects in the second quarter (Q2) of 2021 was Rs 38.6 million per MW and it rose by 12% against the same period last year, according to Mercom’s recently released Q2 2021 India solar market update.

The cost rose by 12% against the same period last year when it was Rs 34 million per MW, and a 5% rise from Q4 2020 when the price was around Rs 35.3 million per MW.

Along with a shortage of some raw materials, the prices have risen due to the increase in the component costs led by modules and other commodities. The global steel costs rose in the first four months of 2021. But steel producers struggled to supply as the production was less due to iron ore shortage, the raw material used to manufacture steel.

Meanwhile, the average cost per MW for rooftop solar installations was around Rs 39.6 million per MW, increased by 8% from the same period last year when prices stood at Rs 36.5 million. The average price for setting up rooftop solar systems was Rs 38 million per MW in the previous quarter, up roughly 4% quarter-over-quarter (QoQ).

Increasing solar module average selling prices (ASPs) continued in Q2 2021, driven by expensive polysilicon and higher raw material costs. Freight charges have continued to be high since last year because of the shipping container shortages and global logistical difficulties.

The container shortage issue has not yet been fixed, ending in high freight costs, adversely impacting module costs. The solar module prices had risen due to the supply-demand gap, adding more financial burden on rooftop solar developers.

The rooftop solar sector has been witnessing better financing opportunities with a decline in the cost of debt, grown availability of equity, and the overall price of financing going down.

Image Source


Also read: Govt approves 45 solar parks under solar park scheme

The average cost of large-scale solar projects in the second quarter (Q2) of 2021 was Rs 38.6 million per MW and it rose by 12% against the same period last year, according to Mercom’s recently released Q2 2021 India solar market update. The cost rose by 12% against the same period last year when it was Rs 34 million per MW, and a 5% rise from Q4 2020 when the price was around Rs 35.3 million per MW. Along with a shortage of some raw materials, the prices have risen due to the increase in the component costs led by modules and other commodities. The global steel costs rose in the first four months of 2021. But steel producers struggled to supply as the production was less due to iron ore shortage, the raw material used to manufacture steel. Meanwhile, the average cost per MW for rooftop solar installations was around Rs 39.6 million per MW, increased by 8% from the same period last year when prices stood at Rs 36.5 million. The average price for setting up rooftop solar systems was Rs 38 million per MW in the previous quarter, up roughly 4% quarter-over-quarter (QoQ). Increasing solar module average selling prices (ASPs) continued in Q2 2021, driven by expensive polysilicon and higher raw material costs. Freight charges have continued to be high since last year because of the shipping container shortages and global logistical difficulties. The container shortage issue has not yet been fixed, ending in high freight costs, adversely impacting module costs. The solar module prices had risen due to the supply-demand gap, adding more financial burden on rooftop solar developers. The rooftop solar sector has been witnessing better financing opportunities with a decline in the cost of debt, grown availability of equity, and the overall price of financing going down. Image Source Also read: Govt approves 45 solar parks under solar park scheme

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code