India experienced a notable decline in solar installations, with the country installing 5.6 GW of solar capacity in the first nine months of 2023. This reflects a nearly 47% drop compared to the installations recorded during the same period in 2022, as reported by Mercom India Research on Thursday.
The data highlights a substantial year-over-year decrease of over 54% in utility-scale installations, which totaled 4.2 GW. Although solar additions in the third quarter were down by 34% from the previous year, there was a modest increase of almost 6% quarter-over-quarter.
Raj Prabhu, Chief Executive of Mercom Capital Group, acknowledged the challenging year for solar in India but expressed optimism about exponential growth in installations in 2024, barring significant negative developments. He attributed the current slowdown to declining prices, as developers and installers delay procurement until the last minute. Prabhu commented, “Hopefully, the market can handle the expected rush in Q1 2024 and thrive.”
Mercom's report indicates that installations in the nine-month period were affected by extensions granted to several large-scale solar and hybrid power projects, along with delays attributed to land and transmission issues.
Despite the slowdown, solar still contributed nearly 46% of the over 12 GW of new power capacity added in India during the first nine months of 2023. As of September 2023, the country boasts a cumulative solar capacity of over 69 GW, encompassing rooftop solar installations.
