India has achieved a historic milestone in solar energy installations, registering a remarkable 15 gigawatts (GW) of new capacity during the first half of 2024, according to a recent report by Mercom Capital. This represents an unprecedented surge, as developers accelerated efforts to complete projects that had previously been delayed. In comparison, the country had added only 3.89 GW of solar capacity from January to June 2023, as reported by the US-based research firm.
The latest report, titled ‘India Solar Market Update,’ highlights that the solar installations in the first half of 2024 exceeded all prior records, reflecting a staggering 282 percent increase compared to the same period in 2023. This leap in solar capacity was largely driven by a race among developers to commission projects that had been pending for some time.
As of June 2024, India’s total installed solar capacity reached an impressive 87.2 GW. Of this, utility-scale solar projects comprised nearly 87 percent, while rooftop solar installations accounted for over 13 percent. Solar energy now represents 19.5 percent of India’s total installed solar power capacity and more than 44 percent of the country’s overall renewable energy capacity.
The cost of large-scale solar projects has seen a significant reduction, dropping nearly 26 percent year-on-year and 2 percent from the previous quarter. The report underscores that 2024 is poised to be a landmark year for India’s solar sector, marking an extraordinary first half.
However, to maintain this momentum and ensure that the substantial pipeline of projects and increased tender activities result in timely installations, it is crucial to address the challenges related to component supply and grid connectivity with urgency. This will be vital for achieving the ambitious target of 280 GW of solar capacity by 2030.
In the first half of 2024, the Indian solar market witnessed the announcement of 41.4 GW worth of tenders, and approximately 31.8 GW of projects were auctioned. This represents a dramatic 321 percent increase from the 7.6 GW auctioned during the same period in 2023. Mercom Capital, known for its expertise in energy storage, smart grid technology, and solar energy market intelligence, also provides strategic advisory services on emerging markets and decision-making.
