Sun-Kissed Success: India’s Solar Power Boom

India’s Solar Capacity Jumps 167% in 2024, Reaching 16.4 GW through September
India added 16.4 gigawatts (GW) of solar capacity between January and September 2024, marking an increase of 167% year-over-year compared to 6.2 GW installed during the same period in 2023, according to a new report from US-based research firm Mercom India. The increase relates to accelerated completions, declining costs, and growing interest in renewable energy.

Growth Driven by Expedited Projects and Cost Reductions
The sharp growth in solar installations was strongly backed by developers pushing ahead to complete their projects in the first two quarters of the year. This was largely driven by the uncertainties in regulations over the Approved List of Models and Manufacturers or ALMM, leading developers to import these solar modules while policy changes could still take place.

Despite such progress, the report highlights several challenges. Regulatory clarity was limited in exemptions, particularly on open-access and rooftop solar projects. Developers additionally faced bottlenecks related to transmission infrastructure, delay in securing connectivity approvals and technical clearances, impacting the viability of planned projects.

Declining Costs Boost Solar Competitiveness
The average cost of large-scale solar projects had reduced over this period; thus, solar power became more competitive in India’s energy market. Nevertheless, the infrastructure development pace remains poor and poses obstacles for developers seeking capacity expansion.

Solar Installations Rise in Q3 2024
In the July-September 2024 quarter, India added 3.5 GW of solar capacity-reflecting a YoY growth of 78% over 2 GW installed in the same quarter of 2023. The country’s cumulative installed solar capacity stood at 89.1 GW as of the end of September 2024.

Utility-scale solar projects accounted for more than 86% of this figure, while rooftop solar installations accounted for about 14%. Solar energy now constitutes 20% of India’s installed power capacity and 44% of the country’s renewable energy capacity.

Regional Highlights
Rajasthan, Gujarat, and Karnataka continued to be the top states in terms of installed large-scale solar capacity. Rajasthan was the leader, accounting for 27% of India’s overall capacity; followed by Gujarat at 15% and Karnataka at 14%.

More Tendering and Auctions
Between July and September 2024, India announced 57.6 GW of solar tenders, a 40% YoY increase, while 37.6 GW of projects were auctioned, marking a 158% YoY rise. In the third quarter alone, 16.2 GW of tenders were announced, reflecting a 19% YoY and 52% quarter-on-quarter increase.

This uptick in tendering and auctions demonstrates growing momentum in India’s solar sector and underscores the government’s commitment to expanding renewable energy infrastructure.

Why Solar Installation Matters
India’s push for solar energy aligns with the broader renewable energy goals and global commitments that combat climate change. Solar installations are among the most critical components of India’s energy transition strategies, alongside ambitions in clean hydrogen, energy storage, carbon capture, and sustainable aviation fuels.

As of September 2024, India’s efforts in renewable energy have put India as the new leader of the world in solar energy. These developments are not only helping in meet internal energy demands but also significantly contributing to the renewable energy targets across the globe.

Challenges Ahead
While India’s solar growth is commendable, challenges persist. Transmission infrastructure development remains slow, and delays in obtaining technical and connectivity approvals continue to hinder progress. Addressing these issues will be crucial for sustaining the growth momentum and achieving the country’s long-term renewable energy targets.

Future Outlook
The growth trajectory of India’s solar energy indicates a strong renewable energy sector with scope for continued expansion. With increased capacity additions, declining costs, and enhanced policy support, the country is well-positioned to lead global initiatives in renewable energy. However, continued efforts to address infrastructure and regulatory challenges will be key to maintaining this kind of growth.

 

Source

Data and insights based on the Mercom India report and renewable energy trends in 2024.

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