In the second quarter (Q2) of 2024, India commissioned 5 GW of solar capacity, a significant drop of over 49% compared to the 9.9 GW installed in Q1 2024. Despite this, the first half (1H) of 2024 saw a record 14.9 GW of solar projects added, a 282% increase compared to 1H 2023, according to Mercom India’s Q2 2024 Solar Market Update. The rise in capacity is attributed to the completion of several previously delayed projects.
Q2 2024 saw 4.3 GW of large-scale solar projects, including 1.8 GW of open-access projects, coming online. However, large-scale solar capacity additions were down over 55% quarter-over-quarter but increased by 191% year-over-year.
Project delays due to grid connectivity and transmission infrastructure issues impacted quarterly additions. The reimposition of the Approved List of Models and Manufacturers (ALMM) order also affected project viability and led to delays. Rajasthan, Gujarat, and Karnataka were the top contributors to large-scale solar capacity in Q2, accounting for 30%, 22%, and 21% of installations, respectively.
India added 20.8 GW of new power capacity in 1H 2024, with renewable sources contributing over 81%, and solar alone accounting for 71% of new capacity. By June 2024, India’s cumulative installed solar capacity reached 87.2 GW, with utility-scale projects making up 87% and rooftop solar 13%.
The pipeline for large-scale solar projects stood at 146 GW, with an additional 104 GW tendered and awaiting auction. Solar module and cell imports fell by more than 61% quarter-over-quarter and 16% year-over-year. In Q2 2024, 10.7 GW of tenders were announced, and 6.7 GW of solar PV projects were auctioned.
Raj Prabhu, CEO of Mercom Capital Group, emphasized the need to address component supply and grid connectivity issues to meet India’s target of 280 GW of solar capacity by 2030.