Investments in Indian Solar Sector Fell by 30% QoQ in Q1 2021

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Investments in India’s solar space were down 30% and were $ 1.04 billion (~ £ 76 billion) in the first quarter (Q1) of calendar year (CY) 2021, compared to $ 1.49 billion ( ~ £ 109 billion) in the fourth quarter of 2020. However, investments were up 7% year-over-year from $ 0.97 billion (~ £ 71 billion) invested in the sector over the same period last year. The data was published in the latest Q1 2021 India Solar Market Update by Mercom India Research.

The second wave of the Covid-19 pandemic is raging across the country, affecting overall investment in the industry.

Of the total investment, utility solar projects attracted nearly $ 875 million (~ $ 64.05 billion), up 48% from $ 591 million (~ $ 42.94 billion) ) in the last quarter. Rooftop projects totaled $ 159 million (~ $ 11.66 billion) in investments in the first quarter of 2021, up 11% from $ 143 million (~ £ 10.39 billion) in the fourth quarter of 2020 corresponds to.

No investments in the solar industry were announced in the first quarter of 2021. However, with the approval of the production-related incentive program, investments in solar production are likely to increase significantly. The call for tenders under the program has been published and the deadline for submitting bids is June 30, 2021.

Deal highlights

Some of the deals that made headlines in the first quarter of 2021:

  • Solavio Labs, a solar panel cleaning technology startup, has received £ 4.06 million (~ $ 0.05 million) in funding from the Canadian province of New Brunswick through its New Brunswick Innovation Fund. With this investment, the company’s total funding is £ 20 million (~ $ 0.26 million).
  • Solar monitoring and analytics platform Prescinto announced the closure of $ 3.5 million (~ £ 263 million) of seed capital. The round was led by Venture Catalysts, with the participation of Inflection Point Ventures, Mumbai Angels and Lets Venture, as well as other prominent angel investors and funds.
  • Adani Green Energy Limited (AGEL), the renewable energy arm of Adani Group, has raised a debt package of $ 1.35 billion (~ £ 101 billion) for its renewable energy portfolio under construction in India. Under the agreement, 12 international banks including Standard Chartered Bank, Intesa Sanpaolo, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank, DBS Bank, Mizuho Bank, BNP Paribas, Barclays Bank, Deutsche Bank, Siemens Bank and ING Bank have theirs Participation for the facility has been confirmed.
  • Total Eren and EDF Renewables announced that EDEN Renewables India, their equal joint venture for large Indian solar projects, has secured the financial completion of its 450 MW SECI III solar PV project with a group of three major international banks. The project currently under construction in Rajasthan was awarded to EDEN in a tender launched by SECI.
  • AC Energy and Infrastructure (AC Energy), based in the Philippines, the investment arm of Ayala Corporation, has, in cooperation with UPC Solar Asia Pacific, achieved the financial completion of its 100 MW Sitara solar project in India. Located in Rajasthan, the project has an estimated cost of US $ 67 million (~ £ 5 billion) and is expected to go live in the first half of 2021.

Prior to that, investments in Indian solar had declined 66% and totaled approximately $ 2.8 billion (~ £ 203.17 billion) in FY2020 compared to $ 8.2 billion (~ 595.02 billion US dollars) . USD) in 2019.


Rakesh is a reporter at Mercom India. Before joining Mercom, he held many roles as business correspondent, editorial assistant, senior content writer and editor at bcfocus.com, CIOReview / Silicon India, Connect Communication and Bangalore Bias. Rakesh holds a bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.

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