The majority of installations were in the residential segment, followed by the commercial and industrial (C&I) market segments
During the period from July to September 2023, rooftop solar installations in India experienced a noteworthy 34.7 percent year-on-year surge, reaching 431 MW, attributed to a decline in module prices, as reported by Mercom India. This marks a significant increase from the 320 MW recorded during the same three-month span in 2022.
Furthermore, the cumulative rooftop solar capacity in India saw an uptick, reaching 1.3 GW in the first nine months of 2023 compared to 1.2 GW in the corresponding period of 2022. As of September 30, 2023, India's overall rooftop solar capacity reached an impressive 10.1 GW, according to the 'Q3 2023 Mercom India Rooftop Solar Report.'
Raj Prabhu, CEO of Mercom Capital Group, highlighted the growing momentum in rooftop installations, attributing it to a substantial drop in module prices. This decrease has acted as a catalyst for heightened procurement activities, making rooftop solar investments more appealing and signalling the potential for robust quarters ahead.
The majority of rooftop installations were observed in the residential segment, followed by the commercial and industrial (C&I) market segments. During Q3 2023, the average cost of rooftop solar systems declined by 13.4 percent year-on-year and around 5 percent quarter-on-quarter.
Gujarat maintained its leadership in rooftop solar installations, contributing 26.7 percent to the cumulative installations, followed by Maharashtra (13.5 percent) and Rajasthan (8.3 percent). The top 10 states collectively accounted for approximately 77 percent of the total rooftop solar installations as of September 2023.
Examining the growth trends between Q3 2022 and Q3 2023, Kerala recorded the highest compounded growth at 15 percent, followed by Gujarat (7.3 percent) and Maharashtra (5.1 percent).
However, in Q3 2023, there was a notable decrease in rooftop solar tenders, with 119 MW announced—a 61.6 percent drop compared to 310.6 MW in Q3 2022. Around 62 percent of the tendered capacity during the quarter was allocated to government buildings in states such as Rajasthan, Gujarat, and Kerala.
Mercom India, a subsidiary of the US-based Mercom Capital Group, is an energy research company specialising in cleantech markets.