New Delhi: India has achieved a remarkable milestone by installing approximately 15 GW of solar capacity in the first half of 2024, as developers accelerated efforts to complete delayed projects, according to a report by Mercom Capital. The country added 3.89 GW of solar capacity during the same period in 2023, as noted by the US-based research firm in its latest publication.
“In the first half, solar installations in India reached 15 GW, surpassing all previous years’ records, posting an increase of 282 per cent compared to 1H 2023,” stated the report titled ‘India Solar Market Update.’
This record-breaking achievement is largely attributed to developers rushing to commission projects that had previously been delayed.
As of June 2024, India’s total installed solar capacity had reached 87.2 GW, with utility-scale projects making up nearly 87 per cent of this total, and rooftop solar accounting for over 13 per cent. Solar energy now represents 19.5 per cent of India’s installed power capacity and more than 44 per cent of the nation’s total renewable energy capacity.
The report also highlighted a significant reduction in costs, noting that the average cost of large-scale solar projects had decreased by nearly 26 per cent year-on-year and 2 per cent quarter-on-quarter.
“2024 is shaping up to be a breakout year for India’s solar industry, with an impressive first half,” remarked Raj Prabhu, CEO of Mercom Capital Group. He emphasized the importance of addressing component supply and grid connectivity challenges urgently to ensure that the robust pipeline of projects and increased tender activity lead to timely installations, in order to meet the 280 GW target by 2030.
During the first half of 2024, a total of 41.4 GW of solar tenders were announced, marking a 51 per cent increase from the 27.5 GW tendered in the first half of 2023. Additionally, about 31.8 GW of projects were auctioned in the first half of 2024, reflecting a 321 per cent rise from the 7.6 GW auctioned during the same period in the previous year.
Mercom Capital specializes in providing market intelligence on energy storage, smart grid technology, and solar energy, as well as offering advisory services on emerging markets and strategic decision-making.
