India Installs a Record 10 GW of Solar in 9M 2022
India's cumulative installed solar capacity now stands at 60 GW
India installed a record 10 GW of new solar capacity during the first nine months (9M) of 2022, an increase of 35% year-over-year (YoY), according to Mercom India Research’s newly released Q3 2022 India Solar Market Update report.
Utility-scale installations totaled 9 GW, a 45% YoY increase.
“With over 10 GW of solar added in the first three quarters of 2022, the Indian solar market will surpass last year’s installations and is headed towards its best year. However, the domestic supply and demand mismatch could hold the sector back in the short term. Until there is a clear resolution in Rajasthan, delays will continue to impede large-scale projects,” said Raj Prabhu, CEO of Mercom Capital Group.
In 9M 2022, India added over 12 GW of total power capacity, with 76% of the new capacity coming from solar power, according to the report.
India’s cumulative installed solar capacity now stands at 60 GW. The country has a utility-scale project pipeline of over 58 GW. Nearly 46 GW of tendered projects awaits auction.
Rajasthan’s cumulative large-scale solar photovoltaic installations have crossed the 14 GW mark as of September 2022, and the state accounted for over 27% of the installations in the country.
The report noted that, due to the uncertainty of projects impacted by environmental concerns surrounding the Great Indian Bustard (GIB) region, 4.8 GW of solar projects still await clearance from the Technical Expert Committee. The committee also determined that underground transmission lines of 66 kV and above voltage levels for evacuation of bulk power are not technically feasible. However, underground powerlines of 33 kV and below are feasible, adding ambiguity to the situation and pushing the commissioning dates to the following year.
Third quarter FY22
In the third quarter (Q3) 2022, India added 2.7 GW of solar capacity, a 32% quarter-over-quarter decline. On a YoY basis, the report said installations were down 6.6%.
Multiple government agencies announced over 14 GW of tenders in Q3 2022, an increase of 144% YoY and 56% QoQ.
The average system cost of large-scale solar projects during Q3 2022 was up 0.4% QoQ. The average system cost was up by 7.5% YoY. Large-scale solar system costs have now risen nine quarters in a row, mirroring the rise in the average selling price of modules.
- In 9M 2022, India added over 10 GW of solar capacity, a 35% increase compared to 7.4 GW installed in 9M 2021
- In Q3 2022, Large-scale solar accounted for 88% of the quarter’s installations, and rooftop solar for the remaining 12%.
- India’s cumulative installed solar capacity now stands at 60 GW
- Solar accounted for 76% of new power capacity added during the quarter
- In Q3 2022, Rajasthan and Maharashtra were the top states for solar installations
- The utility-scale project pipeline is around 58 GW, while projects tendered and awaiting auction are approximately 46 GW
Mercom’s India Solar Q3 2022 report is 141 pages and covers all facets of India’s solar market. For the complete report, visit: https://mercomindia.com/product/q3-2022-india-solar-market-update