May 24, 2024 – India installed over 10 gigawatts (GW) of solar capacity in the first quarter (Q1) of 2024, the highest amount to date for a quarter. Solar capacity additions rose nearly 400% compared to over 2 GW installed in Q1 2023, according to the recently released Q1 2024 India Solar Market Update by Mercom India Research.
Solar capacity additions were up 414% compared to nearly 2 GW added in Q4 2023.
Large-scale solar accounted for 9.7 GW, including 1.8 GW of open access solar projects. Solar capacity additions for large-scale projects rose 524% quarter-over-quarter (QoQ) and 534% year-over-year (YoY).
In Q1 2024, solar project installations surged due to a variety of factors, including the commissioning of projects that were delayed from earlier quarters. Developers capitalized on falling module prices, suspension of the Approved List of Models and Manufacturers (ALMM) order, and grid connectivity approvals of solar projects previously hindered by the habitat of Great Indian Bustard (GIB).
“There is a substantial pipeline of large-scale projects scheduled for 2024, positioning India for a record-breaking year by a significant margin. Assuming stability in policy and supply chains, and if government agencies continue to auction projects and meet the set targets, India is poised to be among the top three solar markets globally”, commented Raj Prabhu, CEO at Mercom Capital Group.
In Q1 2024, India added 15.2 GW of new power capacity. Solar power accounted for 66% of the new capacity additions during the quarter.
Rajasthan and Gujarat led large-scale solar installations in the quarter, accounting for 38% and 35% of the capacity additions. Madhya Pradesh ranked third, with 8%.
As of March 2024, India’s cumulative installed solar capacity stood at 82 GW. Solar energy accounted for 18.5% of India’s total installed power capacity and 43% of the total installed renewable energy capacity.
At the end of Q1 2024, Rajasthan had the highest cumulative installed large-scale solar capacity, accounting for 29% of the country’s total installations. Gujarat and Karnataka followed with 14% each.
India’s large-scale solar project pipeline stood at 143 GW, with another 93 GW of projects tendered and pending auction at the end of Q1 2024.
The average cost of large-scale solar projects fell 7% QoQ and 28% YoY, significantly improving the internal rate of return on these projects.
Tenders totaling 30.7 GW were announced during the quarter, up 122% YoY and 92% QoQ. In Q1 2024, 25 GW of solar projects were auctioned, up 229% QoQ and 2,957% YoY.
Key Highlights from Mercom India Research’s Q1 2024 India Solar Market Update:
- India added over 10 GW of solar capacity in Q1 2024, up 414% QoQ and 400% YoY
- Large-scale solar accounted for 96% of the quarterly installations, while rooftop solar contributed the rest
- Rajasthan, Gujarat, and Madhya Pradesh led the quarterly large-scale solar capacity additions
- India’s cumulative installed solar capacity stood at 82 GW as of March 2024.
- India’s large-scale solar project pipeline stood at 143 GW, with another 93 GW of projects tendered and pending auction
- In Q1 2024, tenders totaling 30.7 GW were announced, up 92% QoQ and 122% YoY
- Solar projects amounting to 25 GW were auctioned in Q1 2024, up 229% QoQ and 2,957% YoY