India Added 367 MW of Rooftop Solar in Q1 2024

Gujarat’s Modhera to Be India’s First Solar Powered Village

Sharing is caring!

India’s cumulative rooftop solar capacity was 10.8 GW as of March 2024

May 30, 2024 – India added rooftop solar capacity totaling 367 megawatts (MW) in the first quarter (Q1) of the calendar year (CY) 2024. Installations fell nearly 10% quarter-over-quarter (QoQ) from 406 MW and dropped over 24% year-over-year (YoY) from 485 MW, according to Mercom India’s newly released Q1 2024 India Rooftop Solar Market Report.

The drop in installations was largely a result of application processing delays faced by residential customers due to oversubscription under the PM – SURYA GHAR: MUFT BIJLI YOJANA program, a central subsidy for rooftop systems between 1 kilowatt (kW) and 3 kW. The rise in module prices to comply with domestic content requirements (DCR) further contributed to reduced capacity additions under the SURYA Gujarat program. 

Installations under the capital expenditure (CAPEX) financing model accounted for 69% of the capacity additions in the quarter. Capacity additions under the operational expenditure or the renewable energy service company (OPEX/RESCO) model accounted for the balance.

The industrial segment led quarterly capacity additions, comprising almost 57% of installations. Commercial, residential, and government segments accounted for around 28%, 14%, and 1.1% of capacity additions, respectively.

“Although rooftop solar is off to a slow start, 2024 could be a breakout year if the government’s residential rooftop program – with attractive incentives – finally takes off. Rapidly declining system costs and high power tariffs have created perfect conditions for the sector. The challenge is on the supply side; a short supply of inverters and certain components, availability of skilled labor, and concerns over the ability of installers and government agencies to handle the rush is keeping the sector up at night,” said Raj Prabhu, CEO of Mercom Capital Group.

Gujarat, Maharashtra, Haryana, Kerala, and Karnataka led in rooftop solar additions in the quarter. The top five states accounted for more than 67% of the quarter’s installations.

 

As of March 2024, India had a cumulative installed rooftop solar capacity of 10.8 gigawatts (GW).

The top 10 states comprised over 77% of cumulative rooftop solar installations as of March 2024. Gujarat, Maharashtra, Rajasthan, Kerala, and Karnataka continued to be the leading states for cumulative installed rooftop solar capacity during the quarter.

In Q1 2024, issued rooftop solar tenders totaled 817 MW, up 48% from  553 MW in Q4 2023 and a 141% jump from 338 MW in Q1 2023. Tenders issued for projects to be commissioned under OPEX/RESCO mode accounted for 60% of the quarter’s announcements.

The average cost of rooftop solar systems fell for the sixth straight quarter and was down by more than 6% QoQ and nearly 22% YoY. 

A comprehensive analysis of net metering policies across all Indian states and Union Territories is also included in the report.

Key Highlights from Mercom’s Q1 2024 India Rooftop Solar Market Report

  • In Q1 2024, India added 367 MW of rooftop solar capacity, a 24% drop YoY
  • Installations under the CAPEX model made up 69% of the quarter’s installation
  • Industrial consumers contributed to almost 57% of the installations in Q1
  • Cumulative rooftop solar installations reached 10.8 GW as of March 2024
  • Gujarat and Maharashtra led the quarterly capacity additions and also remained the top states cumulatively
  • In Q1 2024, rooftop solar tenders totaled 817 MW, up 48% QoQ and 141% YoY
  • The average cost of rooftop solar systems fell 6% QoQ and 22% YoY  

The Q1 2024 Mercom India Rooftop Solar Report is 73 pages long and covers all facets of India’s rooftop solar market. For the complete report, visit: https://www.mercomindia.com/product/rooftop-solar-market-report-q1-2024