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The Indian solar segment has achieved a record capacity addition of 10 GW during the first quarter of 2024. This is equal to the new addition made in the entire calendar year 2023.
This 10 GW addition marks the highest-ever quarterly increase to date. In Q1 of 2023, the solar segment added just 2 GW.
In Q1 2024, a total of 15.2 GW of new power capacity was added, with solar power contributing two-thirds (66 per cent) of this. Large-scale solar projects accounted for 9.7 GW, including 1.8 GW from open-access solar projects.
The surge in solar installations during Q1 2024 was driven by several factors, including the commissioning of delayed projects that had received extensions due to high module prices in previous quarters.
Developers benefited from falling module prices, the suspension of the approved list of models and manufacturers (ALMM) order, and the approval of grid connectivity for projects previously stalled by the habitat concerns for the Great Indian Bustard (GIB) facilitated project completions, according to a Mercom India report.
Rajasthan and Gujarat led in large-scale solar installations in Q1 2024, accounting for 38 per cent and 35 per cent of the capacity additions, respectively. Madhya Pradesh ranked third with 8 per cent
As of March 2024, India’s total installed solar capacity stood at 82 GW, representing 18.5 per cent of the country’s total installed power capacity and 43 per cent of its total installed renewable energy capacity.
Rajasthan had the highest cumulative installed large-scale solar capacity, making up 29 per cent of the country’s total installations as of March 2024. Gujarat and Karnataka followed with 14 per cent each.
India’s pipeline for large-scale solar projects stood at 143 GW, with an additional 93 GW of projects tendered and pending auction at the end of Q1 2024.
During Q1 2024, tenders for 30.7 GW were announced and solar projects totaling 25 GW were auctioned.
“There is a substantial pipeline of large-scale projects scheduled for 2024, positioning India for a record-breaking year by a significant margin,” stated Raj Prabhu, CEO of Mercom Capital Group.
Assuming stable policies and supply chains and continued government support in auctioning projects and meeting targets, India is set to become one of the top three solar markets globally.
The average cost of large-scale solar projects fell 7 per cent quarter-over-quarter and 28 per cent year-over-year, significantly improving the internal rate of return on these projects, it said.
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