In the first half (1H) of calendar year (CY) 2024, solar projects totaling 14.9 GW were added in India, an increase of over 282% compared to 1H 2023. According to the newly released Q2 2024 India Solar Market Update by Mercom India Research, installations topped all previous half-yearly and annual installations.

In the second quarter (Q2), 5 GW of solar capacity was commissioned. Installations dropped over 49% quarter-over-quarter (QoQ) compared to 9.9 GW installed in Q1 2024. Capacity additions rose 170% year-over-year (YoY) compared to 1.8 GW in Q2 2023.

Project delays due to grid connectivity and transmission infrastructure issues significantly affected quarterly additions for large-scale solar projects. The reimposition of the Approved List of Models and Manufacturers (ALMM) order further impacted the viability and commissioning of several open access projects, contributing to substantial delays during the quarter.

As of June 2024, India’s cumulative installed solar capacity stood at 87.2 GW. Solar energy accounted for 19.5% of India’s installed power capacity and over 44% of the total installed renewable energy capacity.

In Q2 2024, 10.7 GW of tenders were announced, a 21.6% decrease from 13.6 GW in Q2 2023. Tender activity dropped 65.2% QoQ compared to 30.7 GW.

During the quarter, 6.7 GW of solar PV projects were auctioned, similar to Q2 2023. Auction activity decreased 73.2% compared to 25.1 GW in Q1 2024.

India’s large-scale solar project pipeline stood at 146 GW, with another 104 GW of projects tendered and pending auction as of June 2024.

Key Highlights from Mercom India Research’s Q3 2023 India Solar Market Update:

• India added 5 GW of solar capacity in Q2 2024, down by 49% QoQ and up 170% YoY
• Solar accounted for 71% of new power capacity additions in 1H 2024
• Rajasthan, Gujarat, and Karnataka led quarterly large-scale solar capacity additions
• In 1H 2024, solar projects totaling 14.9 GW were commissioned, up 282% YoY
• India’s cumulative installed solar capacity stood at 87.2 GW as of June 2024
• Rajasthan, Gujarat, and Karnataka led the country’s cumulative large-scale installations.
• India’s large-scale solar project pipeline stood at 146 GW, with another 104 GW of projects tendered and pending auction
• Average large-scale project costs fell 2% QoQ and almost 26% YoY
• Tender announcements in Q2 fell 65.2% QoQ and 21.6% YoY, while auction announcements fell 73.2% QoQ and only marginally YoY

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