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

07 Sep 2021 CW Team

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

Infrastructure Urban

03 Apr 2026

Centre Disburses Over Rs 24,610 mn in XV Finance Commission Grants

The Union Government has released XV Finance Commission tied grants during the financial year 2025–26 to rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Punjab and Sikkim and has released withheld portions of tied and untied grants to Himachal Pradesh, Odisha and Tripura. The total disbursal exceeded Rs 24,610 mn, with figures expressed in million (mn) thereafter. The releases cover allocations pertaining to different financial years and aim to strengthen rural local governance. State-wise disbursements included Rs 3,324.6 mn for Punjab, Rs 9,432.7 mn for Madhya Pradesh, Rs 3,47..

Centre Releases Over Rs 15 bn as XV FC Grants to Rural Bodies

The Union Government has released over Rs 15 bn in grants recommended by the Fifteenth Finance Commission (XV FC) to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in six states. The funds comprise tied and untied grants disbursed in FY 2025–26. Telangana received Rs 2.48 bn as the first instalment of untied grants for FY 2025–26, benefitting 12600 Gram Panchayats (GPs). Uttarakhand received Rs 913.1 mn as the second instalment and an additional Rs 18.4 mn of a withheld first instalment was released to a further 216 GPs. Mizoram is included among beneficiary st..

Government Assures Fuel Supplies And Seafarer Safety Amid West Asia Developments

The Government of India has stepped up coordinated measures to maintain stability in critical sectors as developments in West Asia continue to unfold. It has prioritised uninterrupted energy supplies, safeguarded maritime operations and extended consular assistance to nationals. Central authorities are working with State and Union territory administrations to ensure timely information dissemination and operational continuity. Refineries are reported to be operating at high capacity with adequate inventories of petrol and diesel, and domestic LPG production has been increased to support consump..