India installed a record 16.4 GW of solar capacity in the first nine months of 2024, representing a 167% increase year-over-year, according to a report by Mercom India Research. The surge was driven by the completion of previously delayed projects.
Mercom's Q3 2024 India Solar Market Update reveals that 3.5 GW of solar capacity was commissioned in the third quarter of 2024, marking a 78% increase compared to Q3 2023. However, this figure was 28% lower than the second quarter, reflecting challenges such as grid connectivity delays, land acquisition issues, monsoon-related disruptions, and a shortage of modules meeting domestic content requirements (DCR).
“India is on track for its best year in solar, but significant challenges threaten to slow progress. Grid connectivity issues, land availability, and supply constraints are already impacting momentum,” said Raj Prabhu, CEO of Mercom Capital Group. “Without urgent improvements in transmission infrastructure and land access, solar growth risks falling short of targets; the tender trajectory alone will not be sufficient to meet 2030 goals.”
As of September 2024, India had a total installed solar capacity of 89.1 GW, accounting for nearly 20% of the nation's total power capacity. Solar energy contributed to 73% of new power capacity additions in the first nine months of the year.
India's solar pipeline includes 163 GW of large-scale projects under development and 127.2 GW awaiting auction. In Q3 2024, 16.2 GW of tenders were announced, reflecting a 19% year-over-year and 52% quarter-over-quarter increase. However, auctioned projects declined to 5.8 GW, down 14% from the previous quarter and 17% from the same period last year.
India's strong performance highlights its potential in solar energy, though addressing infrastructure and resource bottlenecks remains critical to sustaining growth and meeting the country's renewable energy targets.
