India has achieved a remarkable milestone in its solar energy sector, registering record installations of approximately 15 GW during the first half of 2024, according to a report by Mercom Capital. This surge in capacity marks a 282 percent increase compared to the 3.89 GW installed in the same period in 2023.
The report, titled India Solar Market Update, attributes this significant growth to developers rushing to commission previously delayed projects. As of June 2024, India's total installed solar capacity reached 87.2 GW. Of this, utility-scale projects accounted for nearly 87 percent, while rooftop solar installations made up over 13 percent.
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Solar energy now contributes 19.5 percent to India's overall installed power capacity and represents over 44 percent of the country's total installed renewable energy capacity. The average cost of large-scale solar projects has decreased by nearly 26 percent year-on-year and 2 percent quarter-on-quarter, further bolstering the industry's growth.
The year 2024 is shaping up to be transformative for India's solar industry, with an impressive start. However, the sector faces challenges that could impede progress. Raj Prabhu, CEO of Mercom Capital Group, stressed the importance of addressing component supply issues and grid connectivity challenges to maintain the momentum and meet India's ambitious target of 280 GW by 2030.
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In the first half of 2024, India saw the announcement of 41.4 GW of tenders, a 51 percent increase from the 27.5 GW tendered in the same period in 2023. Additionally, around 31.8 GW of projects were auctioned, marking a staggering 321 percent increase from the 7.6 GW auctioned in the first half of 2023.
