India added rooftop solar capacity totaling 367 megawatts (MW) in the first quarter (Q1) of the calendar year (CY) 2024. The installations fell nearly 10% quarter-over-quarter (QoQ) from 406 MW and over 24% year-over-year (YoY) from 485 MW, according to Mercom’s Q1 2024 India Rooftop Solar Market Report

Capacity additions in the quarter fell as several residential consumers waited to add capacity under PM – SURYA GHAR: MUFT BIJLI YOJANA, which significantly increased the central subsidy for systems between 1 kW and 3 kW. The large number of applications received within a month of the launch of the program led to technical issues in application processing and delayed installations. Additionally, the rise in prices of modules complying with domestic content requirement (DCR) significantly affected the capacity additions under the SURYA Gujarat program, further impacting the quarterly capacity additions.

Installations under the capital expenditure (CAPEX) model accounted for 69% of the capacity additions in the quarter. Capacity additions under the operational expenditure or the renewable energy service company (OPEX/RESCO) model contributed to the rest.

The industrial segment led the quarterly capacity additions, comprising almost 57% of the installations. Commercial, residential, and government segments accounted for around 28%, 14%, and 1.1% of the capacity additions.

Gujarat, Maharashtra, Haryana, Kerala, and Karnataka led the addition of rooftop solar capacity in the quarter. The top five states accounted for more than 67% of the quarter’s installations.

As of March 2024, India had a cumulative installed rooftop solar capacity of 10.8 GW.

Gujarat, Maharashtra, Rajasthan, Kerala, and Karnataka continued to be the leading states for cumulative installed rooftop solar capacity until March 2024.

The top 10 states comprised over 77% of the cumulative rooftop solar installations as of March 2024.

The average cost of rooftop solar systems fell for the sixth straight quarter and was down by more than 6% QoQ and nearly 22% YoY.

A comprehensive analysis of net metering policies across all Indian states and Union Territories is also included in the report.

Key Highlights from Mercom India Research’s Q3 2023 India Rooftop Solar Market Report

  • In Q1 2024, India added 367 MW of rooftop solar capacity, over a 24% drop YoY
  • Installations under the CAPEX model made up 69% of the quarter’s installation
  • Industrial consumers contributed to almost 57% of the installations in Q1
  • Cumulative rooftop solar installations reached 10.8 GW as of March 2024
  • Gujarat and Maharashtra led the quarterly capacity additions and also remained the top states cumulatively
  • In Q1 2024, rooftop solar tenders totaled almost 817 MW, up 48% QoQ and 141% YoY
  • The average cost of rooftop solar systems fell 6% QoQ and nearly 22% YoY.

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