India significantly expanded its solar power capacity by adding 14.9 GW, marking a remarkable 282% increase compared to the same period in 2023. This surge represents the highest levels of solar installations recorded in any half-year period in the country’s history.
The second quarter of 2024 alone saw the commissioning of 5 GW of new solar capacity. While this figure reflects a 49% decrease from the 9.9 GW installed in the first quarter of 2024, it still represents a substantial 170% year-over-year (YoY) increase from the 1.8 GW added in Q2 2023.
In Q2 2024, the majority of the solar capacity added was in the form of large-scale projects, totaling 4.3 GW. This included nearly 1.8 GW of open access projects. Although large-scale solar installations saw a 55% decrease quarter-over-quarter (QoQ) from the 9.5 GW added in Q1 2024, they experienced a striking 191% increase YoY from the 1.5 GW recorded in Q2 2023.
The slower pace of large-scale installations was largely due to delays related to grid connectivity and transmission infrastructure issues. Additionally, the reintroduction of the Approved List of Models and Manufacturers (ALMM) order caused further delays for several open access projects.
The states of Rajasthan, Gujarat, and Karnataka were the primary contributors to large-scale solar capacity additions in Q2 2024, accounting for 30%, 22%, and 21% of the total new installations, respectively. In the first half of 2024, India added a total of 20.8 GW of new power capacity, with renewable sources, including large hydro projects, making up more than 81% of this total.
Solar energy alone represented over 71% of the new capacity additions. By June 2024, India’s cumulative installed solar capacity had reached 87.2 GW. Of this, utility-scale projects comprised nearly 87%, while rooftop solar installations made up over 13%. Solar energy now contributes 19.5% to India’s total installed power capacity and accounts for more than 44% of the country’s total installed renewable energy capacity.
Rajasthan, Gujarat, and Karnataka continued to lead in terms of cumulative large-scale solar capacity, representing 29%, 15%, and 14% of the total installed capacity, respectively. The top 10 states in India collectively accounted for over 94% of the country’s cumulative large-scale solar installations.
As of June 2024, India’s pipeline for large-scale solar projects stood at an impressive 146 GW, with an additional 104 GW of projects either tendered or pending auction. In Q2 2024 alone, 10.7 GW of tenders were announced, reflecting a 21.6% decline from the 13.6 GW announced in Q2 2023, and a significant 65.2% drop from the 30.7 GW in Q1 2024.
During the same quarter, 6.7 GW of solar photovoltaic (PV) projects were auctioned, maintaining the same level as Q2 2023 but showing a dramatic 73.2% decrease from the 25.1 GW auctioned in Q1 2024. For the first half of 2024, a record-breaking 41.4 GW of tenders were announced, representing a 51% increase from the 27.5 GW announced in H1 2023. Additionally, 31.8 GW of projects were auctioned during this period, marking a staggering 321% increase compared to the 7.6 GW auctioned in H1 2023.
