The average cost of large-scale solar projects in India dropped by almost 23% year-over-year (YoY) in the third quarter (Q3) of calendar year (CY) 2024, according to Mercom India Research’s recently released Q3 2024 India Solar Market Quarterly Update. The costs remained flat quarter-over-quarter (QoQ).

By September 2024, solar module prices had declined for more than seven consecutive quarters, resulting in lower project costs.

In Q3 2024, solar module costs fell 3.3% QoQ, accounting for almost 47% of average large-scale solar project costs.

The average selling price (ASP) of the Indian monocrystalline Passivated Emitter Rear Contact (mono PERC) modules dropped 7% QoQ and over 38% YoY due to the falling prices of imported solar cells.

The ASP of the Chinese mono PERC module was down by more than 13% QoQ and over 52% YoY. A significant inventory of unsold solar modules led to a further price drop in Q3.

Despite the reimposition of the ALMM order, a significant capacity of large-scale solar projects with the final bid submission date before April 10, 2021, installers or developers of behind-the-meter projects and a few other projects were able to import modules in the quarter.

Despite the reimposition of the ALMM order, a substantial number of large-scale solar projects, whose final bid submission date was before April 10, 2021, along with installers or developers of behind-the-meter projects, were able to import modules during the quarter.

India imported solar cells and modules amounting to $986.5 million (~₹82.6 billion) in Q3 2024, up 27.3% QoQ from $774.9 million (~₹64.6 billion). Imports dropped 18.8% YoY from $1.2 billion (~₹101.6 billion).

The ASPs of Indian mono PERC modules, compliant with domestic content requirement (DCR), were over 52% higher than those of non-DCR compliant modules. The country’s limited cell production capacity, increased raw material prices, including silver and aluminum, and increased project demand have created a demand-supply gap and raised costs for domestic manufacturers of DCR-compliant modules.

The average module mounting structure cost was up by 5.7%, and the power conditioning unit cost rose marginally QoQ. Module mounting structures accounted for 9.2%, and the power conditioning unit comprised 6% of the project cost.

The cost of other balance of system (BoS) components remains stable, contributing to 1.6% of the total cost.

The country added 2.8 GW of large-scale solar capacity in Q3 2024, down 34% QoQ and up almost 77% YoY.

India’s cumulative installed solar capacity stood at 89.1 GW as of September 2024. Large-scale solar projects comprised over 86% of the installations, and rooftop solar projects made up almost 14%.

Mercom’s Q3 2024 India Solar Market Quarterly Update is 86 pages long and covers all facets of the Indian solar market. For the complete report, visit: https://www.mercomindia.com/product/q3-2024-india-solar-market-update