India has witnessed a significant increase in rooftop solar capacity during the first quarter of 2023, according to a report by Mercom India. The country added 485 MW of new rooftop solar installations, closely matching the 483 MW installed in the fourth quarter of 2022. The cumulative rooftop solar capacity in India reached an impressive 9.3 GW by March 31, 2023.
The residential sector accounted for the majority of the first quarter's capacity, contributing 58% of the new installations. Industrial and commercial consumers followed, representing 28% and 14% of the additions, respectively.
Raj Prabhu, the CEO of Mercom Capital Group, expressed optimism about the consistent growth in rooftop solar. He attributed this trend to favorable market conditions, stating, “After an up-and-down year in 2022, we are seeing steady growth in rooftop solar driven by solid fundamentals. Decreasing system costs and rising electricity rates make solar economics attractive, leading to accelerated growth in the coming quarters.”
Mercom's report revealed that the surge in installations during the first quarter was primarily due to delayed projects that received exemptions from the Approved List of Models and Manufacturers (ALMM) order issued by the Ministry of New and Renewable Energy in October 2022. This exemption allowed these projects to proceed and contributed to the robust growth of rooftop solar capacity.
Among the states leading the charge in rooftop solar installations during the first quarter were Gujarat, Kerala, and Karnataka, accounting for nearly 70% of the total additions. Gujarat maintained its position as the top state for rooftop solar, representing 24% of the cumulative installations as of March 31, 2023. Maharashtra and Rajasthan followed closely behind.
The expansion of rooftop solar capacity in India not only contributes to the country's renewable energy goals but also provides an array of benefits. It helps reduce greenhouse gas emissions, promotes energy independence, and creates employment opportunities in the clean energy sector. As the cost of solar systems continues to decline and electricity prices rise, rooftop solar is becoming an increasingly attractive option for both residential and commercial consumers across India.
With steady growth anticipated in the coming quarters, the rooftop solar sector in India is poised to play a pivotal role in the nation's renewable energy transition, bolstering sustainability efforts and paving the way for a greener future.
