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

Next Story
Technology

Constructive Automation

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Real Estate

Google India’s New Campus

India continues to cement its position as a global digital powerhouse – and Google’s latest milestone reinforces this trajectory with the inauguration of Ananta, one of its largest offices worldwide. CW explores the design, sustainability and construction aspects of this landmark campus in Bengaluru.Significance of AnantaLocated in Mahadevapura, Bengaluru, Ananta spans 1.6 million sq ft and is situated within Bagmane Tech Park. Named after the Sanskrit word for ‘infinite’, this state-of-the-art, 11-storey facility is Google’s fourth office in Bengaluru. It is designed to foster colla..

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?