India's solar capacity addition at five-year lowest

04 Mar 2021 Editorial Team

Last year, India saw its solar power capacity additions shrink by 56% on a year-on-year basis due to Covid-induced lockdowns, but a “significant positive growth” has been noted this year.

Mercom India Research reports that in 2020, at 3,239 MW, India’s newly commissioned solar photovoltaic (PV) capacity reached its lowest level in five years, and the drop in power sale agreements as tariffs in auctions experienced a steep fall. A rise in module prices and the lockdowns have contributed to the decline.

This year, with policies aiming to promote domestic manufacturing and curb imports of solar components, the sector is set for growth. Market analysts anticipate over 10 GW of solar capacity addition in 2021, given the upcoming commissioning of delayed projects in 2020.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

According to media sources, India commissioned 2.5 GW of large scale solar parks in the past year, or 60% less than a year before. Rooftop installations fell 35% in annual terms to 719 MW and accounted for 22% of the total capacity additions. Regionally, Rajasthan, Gujarat and Andhra Pradesh were the three states with the largest share of new installations for the year.

In the fourth quarter, 1.5 GW of solar parks were put on stream, down from 1.8 GW a year back. Out of this, 1.2 GW came from the large scale solar sector, and 285 MW was from the rooftop systems.

Overall, solar was responsible for 48% of India’s total power capacity additions in 2020. Its cumulative installed solar capacity at the year end amounted to 39 GW, and around 47.5 GW was in the pipeline.

Image Source

Also read: Cities, states issue tenders for solar projects

Also read: Total solar capacity surpasses wind capacity in India

Last year, India saw its solar power capacity additions shrink by 56% on a year-on-year basis due to Covid-induced lockdowns, but a “significant positive growth” has been noted this year. Mercom India Research reports that in 2020, at 3,239 MW, India’s newly commissioned solar photovoltaic (PV) capacity reached its lowest level in five years, and the drop in power sale agreements as tariffs in auctions experienced a steep fall. A rise in module prices and the lockdowns have contributed to the decline. This year, with policies aiming to promote domestic manufacturing and curb imports of solar components, the sector is set for growth. Market analysts anticipate over 10 GW of solar capacity addition in 2021, given the upcoming commissioning of delayed projects in 2020.4th Indian Cement Review Conference 202117-18 March Click for event info According to media sources, India commissioned 2.5 GW of large scale solar parks in the past year, or 60% less than a year before. Rooftop installations fell 35% in annual terms to 719 MW and accounted for 22% of the total capacity additions. Regionally, Rajasthan, Gujarat and Andhra Pradesh were the three states with the largest share of new installations for the year. In the fourth quarter, 1.5 GW of solar parks were put on stream, down from 1.8 GW a year back. Out of this, 1.2 GW came from the large scale solar sector, and 285 MW was from the rooftop systems. Overall, solar was responsible for 48% of India’s total power capacity additions in 2020. Its cumulative installed solar capacity at the year end amounted to 39 GW, and around 47.5 GW was in the pipeline. Image Source Also read: Cities, states issue tenders for solar projects Also read: Total solar capacity surpasses wind capacity in India

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Building Material

11 Dec 2025

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Building Material

11 Dec 2025

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..