It added that project construction was expected to pick up pace over the coming quarters.
“We expect 4,720 MW to be commissioned in the second half of 2020, bringing total commissioned capacity to 5,620 MW for the year. This is the lowest capacity addition over the past three years. Lower equipment prices and lifting of lockdown related restrictions should help developers bounce back with higher capacity addition in 2021,” it said.
According to the report, the capacity addition was down 64 per cent quarter-on-quarter due to extended lockdown and consequent effect on movement of people and goods. However, construction activity picked up towards the end of the quarter, but labour shortage and restrictive work practices continued to affect progress.
Whereas, the total project pipeline stood at 42,229 MW as on 30 June 2020.
“New capacity addition was split between utility-scale solar with 211 MW and rooftop solar with 140 MW. Total commissioned utility scale, rooftop solar, and off-grid solar capacity stands at 32,497 MW, 5,880 MW, and 981 MW, respectively,” said Bridge to India in its report.
It added that the rooftop solar sector is struggling with contraction in demand, higher working capital, and payment delays resulting in addition of only 140 MW capacity in the quarter under review. The report estimates rooftop solar capacity addition of 600 MW over Q3 and Q4 — 23 per cent decrease year-on-year.
Tender issuance dropped by 65 per cent in comparison to Q1 2020. While tenders issued by states dropped by 87 per cent over the previous quarter.
Module prices fell sharply during the quarter, however, they are expected to recover in the coming quarters.