![Solar boom: India adds 14.9 GW solar capacity in H1 2024, up 282% YoY – EQ](https://www.eqmagpro.com/wp-content/uploads/2023/03/222.jpg)
In Short : India experienced a solar energy surge in the first half of 2024, adding 14.9 GW of solar capacity—a 282% year-on-year increase. This remarkable growth highlights the country’s accelerated push towards renewable energy, driven by favorable policies, increased investments, and a strong focus on expanding solar infrastructure. The surge positions India as a key player in the global renewable energy landscape, advancing its goals for sustainable development.
In Detail : In the second quarter (Q2), 5 GW of solar capacity was commissioned. Installations dropped over 49 per cent quarter-over-quarter (QoQ) compared to 9.9 GW installed in Q1 2024.
In the first half (1H) of the calendar year (CY) 2024, solar projects totalling 14.9 GW were added in India, an increase of 282 per cent 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. The commissioning of several previously delayed projects contributed to capacity additions in the year’s first half.
In the second quarter (Q2), 5 GW of solar capacity was commissioned. Installations dropped over 49 per cent quarter-over-quarter (QoQ) compared to 9.9 GW installed in Q1 2024. Capacity additions rose 170 per cent year-over-year (YoY) compared to 1.8 GW in Q2 2023.
During Q2 2024, 4.3 GW of large-scale solar projects were commissioned, including nearly 1.8 GW of open-access solar projects. Large-scale solar capacity additions fell more than 55 per cent QoQ compared to 9.5 GW in Q1 2024 and rose over 191 per cent YoY compared to 1.5 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.
Rajasthan, Gujarat, and Karnataka led in terms of large-scale solar capacity additions for the quarter, accounting for 30 per cent, 22 per cent, and 21 per cent of installations, respectively.
“2024 is shaping up to be a breakout year for India’s solar industry, with an impressive first half. However, to ensure that the strong pipeline of projects and ramped-up tender activity translate into timely installations, it is critical that we tackle the component supply and grid connectivity challenges with urgency so we can meet the 280 GW target by 2030,” said Raj Prabhu, CEO of Mercom Capital Group.
In 1H 2024, India added 20.8 GW of new power capacity. Renewable sources, including large hydro, accounted for more than 81 per cent; solar alone accounted for over 71 per cent of the new capacity additions. As of June 2024, India’s cumulative installed solar capacity stood at 87.2 GW. Utility-scale projects accounted for nearly 87 per cent, and rooftop solar accounted for over 13 per cent of cumulative installations. Solar energy accounted for 19.5 per cent of India’s installed power capacity and over 44 per cent of the total installed renewable energy capacity.
Rajasthan, Gujarat, and Karnataka were the top three states for cumulative installed large-scale solar capacity, accounting for 29 per cent, 15 per cent, and 14 per cent of the country’s installed capacity. As of June 2024, the top 10 states accounted for more than 94 per cent of cumulative large-scale solar installations.
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. Solar module and cell imports dropped more than 61 per cent QoQ and 16 per cent YoY.
The exports were down almost 30 per cent QoQ, with only a marginal drop YoY. The average cost of large-scale solar projects was down 2 per cent QoQ and almost 26 per cent YoY. In Q2 2024, 10.7 GW of tenders were announced, a 21.6 per cent decrease from 13.6 GW in Q2 2023. Tender activity dropped 65.2 per cent 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 by 73.2 per cent compared to 25.1 GW in Q1 2024. In 1H 2024, 41.4 GW of tenders were announced, the highest ever in 1H bid invitations. The tendered capacity issued in 1H 2024 increased 51 per cent from 27.5 GW in 1H 2023.
In 1H 2024, 31.8 GW of projects were auctioned, up 321 per cent from 7.6 GW in 1H 2023. The auctioned capacity was higher than any previous 1H and annual auction announcements.