November 21, 2024 – In the first nine months (9M) of the calendar year (CY) 2024, solar projects totaling 16.4 GW were added in India, an increase of over 167% compared to 6.2 GW in 9M 2023. According to the newly released Q3 2024 India Solar Market Update by Mercom India Research, installations topped all prior nine months and annual installations.
The commissioning of several previously delayed projects contributed to capacity additions in the first nine months of 2024.
In the third quarter (Q3) of 2024, 3.5 GW of solar capacity was commissioned. Installations dropped almost 28% quarter-over-quarter (QoQ) compared to 4.9 GW in Q2 2024. Capacity additions rose by more than 78% year-over-year (YoY) compared to 2 GW in Q3 2023.
In Q3 2024, 2.8 GW of large-scale solar capacity was installed, representing a 34% decline in QoQ compared to the 4.2 GW.
Installations declined in Q3 due to delays in grid connectivity, challenges with land acquisition, disruptions caused by monsoon conditions on construction activities, and a shortage of modules meeting domestic content requirement (DCR) standards.
When comparing YoY, large-scale solar capacity additions rose almost 77% from the 1.6 GW installed in Q3 2023. Solar open-access projects accounted for nearly 39% of large-scale solar installations in Q3 2024.
Gujarat, Madhya Pradesh, and Maharashtra led large-scale solar capacity additions in the quarter. Gujarat contributed over 22% to installations in Q3, and Madhya Pradesh and Maharashtra each comprised over 16% of the capacity commissioned during the quarter.
“India is on track for its best year in solar, but significant challenges threaten to slow progress. Grid connectivity issues, land availability, and supply constraints are already impacting momentum. Without urgent improvements in transmission infrastructure and land access, solar growth risks falling short of targets; the tender trajectory alone will not be sufficient to meet 2030 goals. It’s clear that current priorities need urgent strategic realignment,” commented Raj Prabhu, CEO of Mercom Capital Group.
In 9M 2024, India added 22.4 GW of new power capacity. Renewable sources, including large hydro, accounted for almost 83%, while solar alone accounted for over 73% of new capacity additions.
As of September 2024, India’s cumulative installed solar capacity stood at 89.1 GW. Utility-scale projects accounted for more than 86%, and rooftop solar accounted for almost 14% of cumulative installations. Solar accounted for nearly 20% of India’s installed power capacity and over 44% of the total installed renewable energy capacity.
Rajasthan, Gujarat, and Karnataka were the top three states for total installed large-scale solar capacity. Over 27% of the country’s large-scale solar capacity is installed in Rajasthan, 15% in Gujarat and 14% in Karnataka.
As of September 2024, 94% of cumulative large-scale solar installations were in the top 10 states.
India’s large-scale solar project pipeline stood at 163 GW, with another 127.2 GW of projects tendered and pending auction as of September 2024.
In Q3 2024, 16.2 GW of tenders were announced, up more than 19% from 13.6 GW in Q3 2023. Tender activity rose nearly 52% QoQ compared to 10.7 GW.
During the quarter, 5.8 GW of solar PV projects were auctioned, down by almost 14% QoQ from 6.7 GW. Auction activity dropped by more than 17% YoY from 7 GW.
In 9M 2024, 57.6 GW of tenders were announced, the highest ever in the nine months of any year previously. The tendered capacity issued in 9M 2024 increased by more than 40% compared to 41.1 GW in 9M 2023.
In 9M 2024, 37.6 GW of projects were auctioned, a 158% surge from 14.6 GW in 9M 2023. The auctioned capacity exceeded the previous 9M and annual auction announcements.
India’s solar module and cell imports rose by more than 27% QoQ but dropped almost 19% YoY. Exports were down 55% QoQ and nearly 62% drop YoY.
The average cost of large-scale solar projects was down 1% QoQ and was lower by almost 23% YoY.
Key Highlights from Mercom India Research’s Q3 2024 India Solar Market Update:
- India added 3.5 GW of solar capacity in Q3 2024, down 28% QoQ but up by 78% YoY
- Solar accounted for 73% of new power capacity additions in 9M 2024
- Gujarat, Madhya Pradesh, and Maharashtra led quarterly large-scale solar capacity additions
- In 9M 2024, solar projects totaling 16.4 GW were commissioned, up 167% YoY
- India’s cumulative installed solar capacity stood at 89.1 GW as of September 2024
- India’s large-scale solar project pipeline stood at 163 GW, with another 127 GW of projects tendered and pending auction
- In Q3 2024, tender announcements rose nearly 52% QoQ and were up 19% YoY
- During the quarter, auction activity fell almost 14% QoQ and declined 17% YoY
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