India increased its solar energy capacity by over 12 GW in H1 2024, according to JMK Research
Utility scale drove the new additions thanks to ALMM exemption in Q1, and lower module prices
In comparison, the rooftop solar segment additions dropped by 19.6% annually
Solar PV installations in India increased by 78.9% Year-over-Year (YoY) during January 2024 to June 2024 representing a combined 12.156 GW capacity, according to market intelligence firm JMK Research & Analytics. In comparison, wind installations grew by 2.3% during the same period with 1.92 GW.
The utility scale PV segment drove the installations with about 9.6 GW, 2.3 times higher than the previous year, comprising 7.5 GW in Q1 2024 with 5.3 GW installed in March alone. The state of Rajasthan led the new additions with 3.2 GW, followed by 2.9 GW in Gujarat, and 1 GW in Tamil Nadu.
Analysts attribute a majority of this growth to the exemption of Approved List of Models and Manufacturers (ALMM) until March 2024. It requires developers to source only locally manufactured modules for government or government aided PV projects. The ALMM was reinstated on April 1, 2024 (see India Solar PV News Snippets).
JMK also adds competitive module prices driven by lower cell prices in China in H2 2023 and commissioning of long-pending tenders of SECI, RUMSL, NHPC, and the like for the H1 2024 increase.
Rooftop solar additions during the 1st half of 2024 totaled around 1.8 GW, reflecting 19.6% decline compared to H1 2023 capacity. Going forward, the future of this segment looks bright as the analysts see PM-Surya Ghar: Muft Bijli Yojana to give it a push. JMK forecasts this scheme to enable over 2 GW new rooftop solar capacity in the latter half of 2024.
Off-grid/distributed solar additions of about 688 MW during the reporting period went up by some 2.3 times YoY.
At the end of June 2024, solar energy accounted for close to 44% of the country’s cumulative installed renewable energy capacity of 195 GW, representing over 85 GW in absolute terms, according to JMK.
As per the Ministry of New and Renewable Energy (MNRE), as of July 31, 2024, solar power accounted for 87.2 GW cumulative capacity, comprising 67.52 GW, 13.40 GW grid connected rooftop solar, 2.59 GW hybrid projects (solar component), and 3.70 GW off-grid projects.