Solar power sector in India adds the highest new capacity in FY21

In India, the solar power segment closed 12 GW to the grid and has reached its highest ever capacity addition during FY21. The new capacity added by the solar power sector during the January-December 2021 period stood at 11.88GW including utility-scale, rooftop and off-grid energy sectors. 

Previously, when the solar power segment stood at 9.6GW it was the highest capacity addition in 2017. The sector attracted about US$ 4.5 billion global venture capital and private equity funding in the previous year, the highest amount of VC funding ever since 2010. During December, the sector added 3350 MW of additional capacity compared to 1924 MW and 3319 MW in the corresponding year 2020. 

During FY21, the Indian renewable energy sector added an additional 13.73 GW capacity including solar, wind, small hydro and biopower energy. Solar power is still the major driver of new capacity addition in the renewable sector. 

As of December, the total-grid connected renewable energy capacity stood at 104.88 GW in India, out of which, the solar power segment accounted for 49.36 GW. The wind segment accounts for the cumulative installed capacity of 40.01 GW. Small hydro and biopower sectors, including energy waste accounted for a total of 4.84 GW and 10.61 GW respectively. 

In the past few years, the Renewable energy sector has witnessed large investments that have also been led by a strong policy push by the government to reduce carbon emissions in the country. Therefore, the renewable energy sector capacity has increased to 27% in December. The center has committed an additional 500 GW in the non-fossil fuels sectors by 2030 that will increase the renewable energy share in India by 50%.