Solar imports, exports rise 1,000% in Q2 of CY21

Quarter-over-quarter (QoQ), Indian solar imports rose by 194% in Q2 2021 against Rs 18.9 billion in Q1 2021 and solar exports surged by 151% to Rs 4.4 billion) year-over-year (YoY) in Q2 2021, against Rs 1.8 billion during the corresponding period last year. Exports rose 113% compared to Rs 2.08 billion in Q1 2021. Imports of solar cells and modules increased by a staggering 1,000% in the second quarter (Q2) of the calendar year (CY) 2021, totalling Rs 56.6 billion against Rs 5.25 billion during the corresponding period last year which was severely affected by Covid-19. It is the first huge indication of market recovery and demand bounce back since Covid-19 shut down the markets at the end of March 2020. After the lockdown was declared on 25 March 2020, solar construction activity was stopped, and solar establishments were down to just 3.2 GW in the calendar year 2020. Activity has picked up this year, and the lockdowns were more targeted and handled by states leading to a lot less disruption in construction and development activity. Despite higher component prices and shortages, imports rose 346% in the first half (1H) of 2021 compared to the 1H 2020, while exports surged by 50% compared to the corresponding period last year. Compared to pre-pandemic activity in 2019, imports were slightly lower. Exports, on the other hand, were increased by 30%. The impact of ALMM on imports is likely to show up in the second half of the year. Image Source