India Reports Highest Quarterly Solar PV Installation To Date

• India installed 10 GW of new solar PV capacity in Q1/2024, its highest quarterly addition  
• It comprises 9.7 GW of large scale solar capacity that increased 524% quarterly and 534% annually  
• It attributes the growth to projects delayed due to high module prices, getting commissioned  
• Several projects came online ahead of schedule to make use of ALMM order suspension 

India's solar PV installations grew by almost 400% annually to 10 GW during Q1/2024 marking the highest quarterly installations to date, says Mercom India Research. Even on quarterly basis, the installations grew by 414% from 1.8 GW PV it reported for Q4/2023.  

Large-scale solar capacity of 9.7 GW, including 1.8 GW from open access projects, led the installations. Mercom says this represents 524% quarterly and nearly 534% annual increase. This means rooftop solar additions should make up remaining 300 MW.  

For Q1/2023, Mercom had previously announced Indian solar installations at 1.9 GW, but now it says the additions exceeded 2 GW.   

It attributes this strong growth to several delayed projects getting commissioned during the reporting period. These had received extensions in previous quarters due to high module prices. Additionally, many projects were commissioned ahead of schedule to take advantage of the Approved List of Models and Manufacturers (ALMM) order suspension.  

Mercom India's Managing Director Priya Sanjay adds, "Falling module prices and suspending the ALMM order enabled developers to import modules at lower costs, facilitating project completions." 

Projects hampered by the issue concerning Great Indian Bustard (GIB) were granted grid connectivity, thus boosting installations in Q1.  

Solar PV accounted for 66% of the total new power capacity additions of 15.2 GW in India during the period. Maximum solar PV capacity was commissioned in the states of Rajasthan and Gujarat, followed by Madhya Pradesh.  

At the end of March 2024, India's total installed solar PV capacity reached 82 GW, accounting for 18.5% of the country's total installed power capacity and 43% of total installed renewable energy capacity.  

During the period, India auctioned 25 GW of solar projects representing 229% quarterly and 2,957% annual increase. Tenders were announced for 30.7 GW capacity which also went up 92% quarterly and 122% annually, thanks to streamlined auctions and attractive tariffs. These have led to quicker PPA signings and increased developer interest.   

The future looks bright as well as Mercom counts a growing pipeline of solar capacity with 143.3 GW of large-scale projects and an additional 93.1 GW of projects tendered and pending auction till the end of Q1.  

Mercom India's parent Mercom Capital Group CEO Raj Prabhu pointed out, "Assuming stability in policy and supply chains, and if government agencies continue to auction projects and meet the set targets, India is poised to become among the top three solar markets globally."  

A cause of concern can be inadequate transmission infrastructure and land acquisition delays even as developers are likely to race against time to complete projects before the interstate transmission system (ISTS) charges waiver deadline expires in June 2025, it cautions.    

Mercom makes these assertions in its Q1 2024 India Solar Market Update Report that can be purchased on Mercom's website.