In the fourth quarter (Q4) of calendar year (CY) 2024, the average cost of large-scale solar power projects in India fell over 8% year-over-year (YoY), according to Mercom’s recently released Q4 and Annual 2024 India Solar Market Update. However, the average project cost rose 1.6% quarter-over-quarter (QoQ).

The average selling price (ASP) of India-made modules registered under the Approved List of Models and Manufacturers (ALMM) order rose in Q4 due to high demand and increasing component prices. Solar modules accounted for almost 47% of the project cost in Q4 2024, up from nearly 46% in the previous quarter.

The ALMM order was reimposed in April 2024. However, the availability of a significant capacity of low-cost Chinese modules imported in the previous quarters due to ALMM order suspension continued to drive down costs until Q3 2024. In Q4 2024, over 65% of the projects commissioned were with enlisted Indian modules, increasing the project costs.

Large-scale solar system costs rose for the first time in Q4 after declining for seven consecutive quarters between Q1 2023 and Q3 2024, with the lowest quarterly average project cost discovered in Q3 2024.

The ASPs for Indian monocrystalline passive emitted rear contact (mono PERC) modules rose 11% QoQ. However, on a YoY basis, ASPs fell more than 13%.

In Q4, the strong demand and limited availability of modules meeting the quality requirements led to supply shortages. Anti-dumping duties imposed on solar glass and aluminum frames further drove the rise in module prices and project costs.

During the quarter, some utility-scale and solar open access projects benefitted from the use of low-cost modules imported from China due to exemption from the use of ALMM enlisted modules. Behind-the-meter (BTM) solar projects also benefitted from low costs, as the ALMM order doesn’t apply to these projects.

India added 7.8 GW of solar in Q4 2024, up 118% from Q3 2024’s 3.6 GW and a 303% increase from 1.9 GW installed in Q4 2023.

The country added 25.2 GW of solar capacity in 2024, up 204.3% compared to 8.3 GW in 2023. The year’s installations surpassed the annual capacity additions of all previous years.

Mercom’s Q4 2024 India Solar Market Quarterly Update is 113 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: https://www.mercomindia.com/product/q4-2024-india-solar-market-update