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					</table><p>The average cost of large-scale solar power projects in India fell 28.2% year-over-year (YoY) in the first quarter (Q1) of 2024, primarily due to a significant drop in module prices over the year.</p>
<p>Since Q1 2023, large-scale solar project costs have dropped consecutively for five quarters. Q1 2024 recorded the lowest quarterly average project cost. The average project cost was down 7.1% quarter over quarter (QoQ).</p>
<p>These findings were published in Mercom India Research&#8217;s recently released <a href="https://www.mercomindia.com/product/q1-2024-india-solar-market-update" target="_blank" rel="noopener"><strong>Q1 2024 India Solar Market Quarterly Update.</strong></a></p>
<p>The significant fall in system costs has lowered the cost of capital and increased the internal rate of returns for large-scale solar projects, driving capacity additions.</p>
<p>In Q1 2024, India <a href="https://www.mercomindia.com/india-record-solar-capacity-q1-2024">achieved</a> a significant milestone by adding over 10 GW of solar capacity in Q1 of 2024, the highest quarterly installation to date.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-66811 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg.png" alt="Average Cost of Large-Scale Solar Q1 2024.jpg" width="942" height="502" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg.png 942w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg-300x160.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg-768x409.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg-650x346.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg-624x333.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Average-Cost-of-Large-Scale-Solar-Q1-2024.jpg-600x320.png 600w" sizes="(max-width: 942px) 100vw, 942px" /></a></p>
<p>The average selling price (ASP) of Chinese monocrystalline passivated emitter rear contact (mono PERC) modules fell 12.4% QoQ and 48.3% YoY, and the ASP of Indian mono PERC modules was down 13.6% QoQ and 41.7% YoY.</p>
<p>India imported solar cells and modules worth over $2 billion (~₹166.9 billion) in Q1 2024, down 2.1% QoQ compared to $2.05 billion (~₹170.9 billion) in Q4 2023. Imports were up 147.5% YoY from $812 million (~₹66.7 billion) in Q1 2023. Solar cells accounted for 20.9% of the quarter&#8217;s imports, and solar modules 79.1%.</p>
<p>The oversupply of photovoltaic (PV) materials and products in China lowered the prices of both Chinese and Indian modules in the quarter.</p>
<p>However, due to limited cell production capacity in India, the average cost of projects with modules complying with domestic content requirements (DCR) was considerably higher than those of non-compliant modules.</p>
<p>During the quarter, project developers preferred central over string inverters for large-scale projects due to their lower costs and reliability.</p>
<p>The cost of mounting structures dropped 3.6% QoQ. The cost of other BoS components remained largely unchanged from Q4 2023, contributing 1.6% to the average system price.</p>
<p>The average large-scale project costs could increase starting Q2 2024 due to the <a href="https://www.mercomindia.com/almm-reimposed-april-no-exemptions-open-access-solar" target="_blank" rel="noopener">reimplementation</a> of the Approved list of Models and Manufacturers (ALMM) orders on all solar projects, including rooftop and open access solar projects for private consumers by the Ministry of New and Renewable Energy has notified the implementation from April 1, 2024. The ALMM order will prevent cheaper module imports.</p>
<p>Mercom&#8217;s Q1 2024 India Solar Market Quarterly Update is 93 pages long and covers all facets of the Indian solar market and a detailed analysis of the project cost trends. For the complete report, visit: <a href="https://www.mercomindia.com/product/q1-2024-india-solar-market-update" target="_blank" rel="noopener"><strong>https://www.mercomindia.com/product/q1-2024-india-solar-market-update</strong></a></p>


Average Cost of Large-Scale Solar Projects Fell 28% YoY in Q1 2024


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					</table><p><a href="https://www.renew.com/" target="_blank" rel="noopener">ReNew</a>, <a href="https://www.waaree.com/" target="_blank" rel="noopener">Waaree Energies</a>, <a href="https://www.firstsolar.com/en-IN" target="_blank" rel="noopener">First Solar</a>, <a href="https://www.adanisolar.com/" target="_blank" rel="noopener">Adani Solar</a>, and <a href="https://emmvee.com/" target="_blank" rel="noopener">Emmvee Photovoltaic Power</a> led the annual solar module manufacturing capacity additions in the calendar year (CY) 2023, according to Mercom’s <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-2024-market-shares-and-profiles" target="_blank" rel="noopener">India Solar Market Leaderboard Report 2024</a>.</p>
<p>India added 20.8 GW of solar modules and 3.2 GW of solar cell production capacity in  CY 2023, according to Mercom’s <a href="https://www.mercomindia.com/product/state-solar-manufacturing-india-2024" target="_blank" rel="noopener">State of Solar PV Manufacturing in India 2024 report</a>.</p>
<p>The country’s cumulative solar module and cell manufacturing capacity reached 64.5 GW and  5.8 GW, respectively, as of December 2023. Of the installed module manufacturing capacity, about 60% was equipped to make modules in M10 and G12 wafer sizes.</p>
<p>As of December 2023, monocrystalline modules accounted for 67.5% of the country’s module production capacity, followed by polycrystalline, Tunnel Oxide Passivated Contact (TOPCon), and thin-film.</p>
<p>ReNew and Waaree Energies led the capacity additions, each accounting for 19% of the total capacity additions during the year. First Solar, Adani Solar, and Emmvee Photovoltaic Power rounded off the top five.</p>
<p>The top five manufacturers accounted for 72% of the production capacity additions in CY2 2023.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-66438 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023.png" alt="Module Manufacturing Capacity Additions (MW) in CY 2023" width="767" height="560" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023.png 767w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023-300x219.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023-650x475.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023-624x456.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Module-Manufacturing-Capacity-Additions-MW-in-CY-2023-600x438.png 600w" sizes="(max-width: 767px) 100vw, 767px" /></a></p>
<p>ReNew’s newly commissioned manufacturing unit in Jaipur, Rajasthan is spread across 22 acres and can produce ~15,000 solar modules/day.</p>
<p>Waaree Energies added 4 GW of module manufacturing capacity in Q1 2023. The company announced the expansion in December 2022, enabling the company to increase its production of modules rated up to 650 Wp.</p>
<p>First Solar <a href="https://www.mercomindia.com/first-solar-module-manufacturing-facility-in-tamil-nadu" target="_blank" rel="noopener">commissioned</a> its thin-film module manufacturing unit in Tamil Nadu in Q4 2023. The facility has a nameplate capacity of 3.3 GW. The unit involved an investment of approximately $700 million (~₹57 billion).</p>
<p>India’s module manufacturing capacity is expected to surpass 150 GW, and cell capacity will likely reach over 75 GW by 2026. The monocrystalline is expected to account for a majority of the annual module production capacity (although declining), followed by TOPCon, Heterojunction (HJT), and other technologies.</p>


ReNew, Waaree and First Solar Lead Solar Manufacturing Capacity Additions in 2023


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					</table><p><a href="https://www.adanigreenenergy.com/" target="_blank" rel="noopener">Adani Green Energy</a>, <a href="https://www.upcrenewables.com/" target="_blank" rel="noopener">UPC Renewables</a>, <a href="https://www.tatapower.com/" target="_blank" rel="noopener">Tata Power Company</a>, <a href="https://www.gsecl.in/" target="_blank" rel="noopener">Gujarat State Electricity Corporation (GSECL),</a> and <a href="https://www.risingsunenergy.in/" target="_blank" rel="noopener">Rising Sun Energy (Yinson Holdings)</a> were the top utility-scale solar project developers in the calendar year (CY) 2023, according to <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-2024-market-shares-and-profiles" target="_blank" rel="noopener">Mercom&#8217;s India Solar Market Leaderboard 2024</a>.</p>
<p>The report covers market share and ranking across India&#8217;s solar supply chain and provides the most accurate and comprehensive coverage of India&#8217;s solar industry leaders. The 2023 report captured notable shifts in market share rankings compared to the previous year.</p>
<p>Adani Green Energy led the utility-scale solar developer&#8217;s list, accounting for 28.9% of the yearly capacity additions. UPC Renewables and Tata Power ranked second and third, accounting for 11.6% and 9.2% of the annual installations in 2023. GSECL and Rising Sun Energy (Yinson Holdings) rounded off the top five, contributing 9.1% and 7.3% to capacity additions.</p>
<p>The top five utility-scale project developers accounted for almost 66% of the market share.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-66132 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart.png" alt="Leaderboard 2023 - Top Large-Scale Solar Developers Chart" width="700" height="472" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart.png 700w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart-300x202.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart-650x438.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart-624x421.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Leaderboard-2023-Top-Large-Scale-Solar-Developers-Chart-600x405.png 600w" sizes="(max-width: 700px) 100vw, 700px" /></p>
<p>Adani Green Energy added 525 MW of solar capacity as a part of a 700 MW wind-solar hybrid power project in Jaisalmer, Rajasthan. In December 2023, the company <a href="https://www.mercomindia.com/adani-green-secures-follow-on-funding-1-3-billion" target="_blank" rel="noopener">secure</a>d a follow-on funding of $1.36 billion and enhanced its construction financing pool to $ 3 billion to fund a 2,167 MW renewable energy park in Khavda, Gujarat. During the same month, it <a href="https://www.mercomindia.com/adani-ppa-8-gw-manufacturing-linked-solar-seci" target="_blank" rel="noopener">signed</a> a power purchase agreement with Solar Energy Corporation of India (SECI) for the remaining 1,799 MW of an  8 GW auction it won in 2020.</p>
<p>UPC Renewables commissioned 300 MW of utility-scale solar projects awarded by SECI as part of Phase VI of ISTS-connected projects in Khandwa, Madhya Pradesh.</p>
<p>Tata Power commissioned a 110 MW solar power project in Bikaner, Rajasthan. The project supplies green power to the Kerala State Electricity Board. In November 2023,  the company <a href="https://www.mercomindia.com/acme-juniper-tata-winners-sjvn-auction" target="_blank" rel="noopener">won</a> 200 MW as a part of SJVN&#8217;s 1.5 GW Firm and Dispatchable Renewable Energy Project auction at a tariff ₹ 4.38 (~$ 0.0526)/kWh. The award includes an additional greenshoe capacity of 260 MW, bringing the total contracted capacity to 460 MW.</p>
<p>In July 2023, GSECL commissioned 131 MW of utility-scale solar projects in various districts of Gujarat. Rising Sun Energy commissioned a 190 MW project <a href="https://www.mercomindia.com/rising-sun-project-rajasthan-nokh-solar-park" target="_blank" rel="noopener">awarded</a> by NTPC in Nokh Solar Park in Rajasthan.</p>
<p>In CY 2023, India <a href="https://www.mercomindia.com/plagued-by-project-delays-plummet-by-44-in-2023" target="_blank" rel="noopener">added</a> 7.5 GW of solar energy capacity, down 44.1% from 13.4 GW in 2022, according to Mercom India&#8217;s <a href="https://www.mercomindia.com/product/q4-2023-india-solar-market-update" target="_blank" rel="noopener">Q4 &amp; Annual 2023 India Solar Market Update</a>.</p>
<p>India&#8217;s cumulative installed solar capacity reached 72 GW by December 2023, with large-scale (including open access) solar projects making up 85.4% of the overall installations.</p>
<p>Mercom&#8217;s India Solar Market Leaderboard report covers the market landscape across the entire supply chain. For the detailed and comprehensive report, <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-2024-market-shares-and-profiles" target="_blank" rel="noopener">click here</a>.</p>


Adani Green, UPC and Tata Power: Top Utility-Scale Solar Developers in 2023


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					</table><p>The average cost of large-scale solar power projects in India declined by 26.6% year-over-year (YoY) in the fourth quarter (Q4) of 2023 following a drop in module prices.</p>
<p>Large-scale solar system costs declined throughout 2023. The Q4 2023 quarter recorded the lowest-ever quarterly average project cost since the beginning of large-scale solar capacity additions in the country.</p>
<p>These findings were published in Mercom India Research&#8217;s recently released <a href="https://www.mercomindia.com/product/q4-2023-india-solar-market-update" target="_blank" rel="noopener"><strong>Q4 and Annual 2023 India Solar Market Update</strong></a><strong><u>.</u></strong></p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-64213 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2.png" alt="" width="914" height="447" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2.png 914w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2-300x147.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2-768x376.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2-650x318.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2-624x305.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Picture1-2-600x293.png 600w" sizes="(max-width: 914px) 100vw, 914px" /></p>
<p>The October to December 2023 period witnessed the lowest recorded module prices, leading to a significant fall in project costs. Lower costs have allowed developers to reduce their capital investments and increase project returns, which in turn is expected to boost installations significantly in 2024.</p>
<p>The average selling price (ASP) of Chinese mono PERC modules fell 28.9% QoQ and 50.9% YoY. The ASPs of Indian mono PERC modules dropped 29.9% QoQ and 37.3% YoY.</p>
<p>The country imported 9.5 GW of solar modules in Q4 2023, primarily to meet commissioning deadlines in March 2024.</p>
<p>Solar cell and module <a href="https://www.mercomindia.com/indian-solar-exports-grow-227-2023-imports-up-89" target="_blank" rel="noopener">imports</a> in the year totaled $5 billion (~₹416.8 billion), up 89.3% YoY compared to $2.6 billion (~₹208.3billion).</p>
<p>The suspension of the Approved List of Models and Manufacturers regulation drove the rise in imports of solar modules, which form over 50% of project costs.</p>
<p>In February 2024, MNRE <a href="https://www.mercomindia.com/almm-reimposed-exempt-open-access-solar-projects-advanced-stages" target="_blank" rel="noopener">reimposed</a> the ALMM order on utility-scale and subsidized rooftop solar projects from April 1, 2024. Utility-scale solar projects in the advanced stage of construction for which module procurement orders have been placed by March 31, 2024, were exempted from the mandate along with open access and rooftop solar projects by C&amp;I entities. However, the reimposition order was held in <a href="https://www.mercomindia.com/product/q4-2023-india-solar-market-update" target="_blank" rel="noopener">abeyance</a> by the Ministry.</p>
<p>The solar industry stakeholders now await a clarification on the reimposition to understand the impact on project costs.</p>
<p>According to the report, the prices of power conditioning units fell 5.2% QoQ. During the quarter, the industry showed a preference for central inverters over string inverters for their projects. The cost of other BoS components remains unchanged compared to Q3 2023.</p>
<p>In 2023, India <a href="https://www.mercomindia.com/plagued-by-project-delays-plummet-by-44-in-2023" target="_blank" rel="noopener">added</a> 7.5 GW of solar capacity, a 44.1% drop from 13.4 GW installed in 2022. The cumulative installed solar capacity, including rooftop solar installations, surpassed 72 GW as of December 2023.</p>
<p>Mercom&#8217;s Q4 2023 India Solar Market Quarterly Update covers all facets of the Indian solar market and a detailed analysis of the project cost trends. For the complete report, <strong>visit: </strong>  <strong>https://www.mercomindia.com/product/q4-2023-india-solar-market-update.</strong><strong> </strong></p>


Author: R Govind

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