The extensions granted to several large-scale solar and hybrid power projects, coupled with delays due to land and transmission issues, primarily affected installations in January–September 2023
India has reported a 47 percent decrease in solar installations, amounting to 5.6 GW during January–September 2023, due to delays in project execution, as per research firm Mercom India.
Solar installations also experienced a downturn in the July-September quarter this year, recording 1.9 GW, a 34 percent decline compared to the 2.8 GW solar capacity installed in the same period the previous year, the research firm noted.
However, on a quarter-on-quarter (QoQ) basis, installations increased by almost 6 percent, compared to 1.8 GW in Q2 2023.
The Mercom India Solar Market Update report stated, "During the first nine months of 2023, 5.6 GW of solar was installed in India. Solar capacity additions fell nearly 47 percent compared to 10.5 GW installed in 9M 2022."
Utility-scale installations saw a year-over-year (YoY) drop of more than 54 percent, totaling 4.2 GW.
Raj Prabhu, CEO of Mercom Capital Group, commented, "Barring significant negative developments, installations in 2024 should grow exponentially. Declining prices of products are now the cause of slower growth (compared to rising prices earlier) as developers and installers push procurement to the last minute. Hopefully, the market can handle the expected rush in Q1 2024 and thrive."
The extensions granted to several large-scale solar and hybrid power projects, coupled with delays due to land and transmission issues, primarily affected installations in January–September 2023.
The oversupply of modules in China further reduced the average selling prices of solar modules, which have fallen consecutively over the last four quarters.
Challenges in securing transmission connectivity increased further with changes in project timelines. During Q3, project developers lacked clarity on application procedures under amended regulations for long-term access to transmission networks. However, clarifications issued by the Central Electricity Regulatory Commission (CERC) towards the end of the quarter are expected to ease the process in the coming quarters.
India's cumulative installed solar capacity, including total rooftop solar installations, exceeded 69 GW as of September 2023. The country's utility-scale solar development pipeline stood at nearly 77 GW, and over 68 GW of projects tendered were pending auction at the end of Q3 2023.
Rajasthan remained the leading state for cumulative large-scale solar installations, adding nearly 17 GW at the end of Q3 2023, accounting for over 28 percent. Karnataka and Gujarat followed with almost 16 percent and 11 percent, respectively.