New Delhi: India has made a significant leap in its solar energy sector, adding a record 15 GW of solar capacity in the first half of 2024, according to a report by Mercom Capital. This marks a remarkable 282 percent increase compared to the 3.89 GW added during the same period in 2023.
The surge in installations comes as developers rushed to complete projects that had previously faced delays. The report, titled “India Solar Market Update,” highlights that this growth surpasses all previous records for solar installations in the country.
As of June 2024, India’s total installed solar capacity reached 87.2 GW, with utility-scale projects making up nearly 87 percent of this figure, and rooftop solar contributing over 13 percent. Solar energy now accounts for 19.5 percent of India’s total installed power capacity and over 44 percent of the country’s total renewable energy capacity.
The average cost of large-scale solar projects decreased by almost 26 percent year-on-year and 2 percent quarter-on-quarter, further boosting the sector’s growth.
“This year is shaping up to be a breakout year for India’s solar industry, with an impressive first half,” said Raj Prabhu, CEO of Mercom Capital Group. However, he emphasized the importance of addressing challenges related to component supply and grid connectivity to ensure the timely completion of the growing pipeline of projects and achieve India’s target of 280 GW by 2030.
In the first half of 2024, a total of 41.4 GW of solar tenders were announced, representing a 51 percent increase from the 27.5 GW issued in the same period of 2023. Additionally, about 31.8 GW of projects were auctioned, a staggering 321 percent increase from 7.6 GW in the first half of 2023.
Mercom Capital, a US-based research firm, specializes in providing market intelligence on energy storage, smart grid technology, and solar energy, along with advisory services for emerging markets and strategic decision-making.
