India’s Solar Surge Breaks Records Despite Challenges - News

India’s solar puts up a fight to dismal challenges by achieving a historical milestone in the first nine months (9M) of 2024, installing 16.4 GW of solar capacity. It represented a 167 percent year over year (YoY) installation growth, compared to 6.2 GW in the same period last year, as per Mercom India Research. This growth broke prior nine months and annual installation records, which was driven by delayed projects coming online and developers stepping up work amid regulatory uncertainties.

Third quarter (Q3) saw new installations amounting to 3.5 GW, up by 78 percent in annual terms but down by 28 percent compared with the previous quarter. Large-scale projects accounted for the lion’s share of 2.8 GW of additions in the quarter, encountering grid connectivity delays, land acquisition issues, and monsoon-related disruptions. Open access projects comprised 39 percent of these large-scale installations, implying robust corporate demand despite tariff and regulatory obstacles.

At the capacity-addition level, Gujarat led Q3, followed by Madhya Pradesh and Maharashtra. Meanwhile, the cumulative large-scale capacity was dominated by Rajasthan, Gujarat, and Karnataka, collectively contributing over 56 percent. The country’s total solar capacity stood at 89.1 GW by September 2024, with solar accounting for 20 percent of India’s power capacity and 44 percent of its renewable energy mix. Large-scale projects pipelines reached 163 GW, with 127.2 GW still awaiting auction. Despite the logistical and regulatory hurdles, plummeting costs of large-scale solar projects and increasing demand mark a sectoral resilience and sustainable growth potential.