India added 14.9 GW of solar capacity in the first half of calendar year 2024, a 282% year-over-year (YoY) increase, according to Mercom India Research’s latest Q2 2024 India Solar Market Update. The installations topped all previous half-yearly and annual installations. The commissioning of several previously delayed projects contributed to capacity additions in the year’s first half. Solar capacity added in the second quarter (Q2) of 2024 stood at 5 GW, up 170% YoY from 1.8 GW. However, installations fell 49% quarter-over-quarter from 9.9 GW.

According to Mercom India’s Q1 2024 Solar Open Access Market Report, India added 1.8 GW of solar open access capacity in Q1 2024, with Rajasthan leading with almost 28% of the quarter’s installations. Rajasthan’s capacity additions were up 154.1% quarter-over-quarter, making it one of the top five states for solar open access. The state’s cumulative installed solar open-access capacity rose 65.9% between Q4 2023 and Q1 2024. In Q1 2024, about 13.7% of the large-scale solar installations in the state were in the open-access model. Open-access solar installations in Rajasthan accounted for 8.8% of India’s cumulative capacity.

India added 770 MW of wind energy capacity in Q2 2024, down 32% YoY from 1,139.9 MW in Q2 2023. The capacity additions fell 33% quarter-over-quarter, according to Mercom India Research. Installations in the quarter decreased mainly due to delays in granting grid connectivity. Additionally, land availability, right-of-way challenges, and the early onset of the monsoon in some states also affected wind project development during this period. Karnataka led the capacity additions with 450 MW. Of the remaining 320 MW, Tamil Nadu added 186 MW, Gujarat 130 MW, and Maharashtra 4.2 MW, respectively.

Solar power accounted for 19.4% of India’s total installed power capacity and 44.2% of the installed renewable capacity in the second quarter (Q2) of the calendar year 2024, up from 15.9% and 38.4% year-on-year, respectively. India’s installed renewable energy capacity, including large hydro projects, stood at 196.4 GW at the end of Q2 2024, accounting for a 44% share of the overall power capacity mix, according to data from the Central Electricity Authority, Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker. The total renewable energy (190.6 GW) share was 43.1% of the overall power mix at the end of Q1 2024.

In the second quarter of the calendar year 2024, India scaled a new high with solar power generation reaching 36 billion units (BU), a 17.6% increase year-over-year. India added 10.1 GW of solar capacity in Q1 2024, a 399.4% increase from Q1 2023 when only 2 GW was installed. The country’s cumulative installed solar capacity stood at 82.1 GW at the end of Q1, according to Mercom India Research’s Q1 2024 India Solar Market Update. Rajasthan, Tamil Nadu, and Karnataka led the solar power generation during the quarter. Rajasthan was the leader with 12.7 BU. Tamil Nadu was second at 4.8 BU, increasing from 3.9 BU in Q1. Karnataka ranked third with 4 BU compared to 4.3 BU in Q1 2024.

India added 1.1 GW of rooftop solar capacity in the first half of calendar year 2024, the highest half-yearly installations to date, according to Mercom India’s newly released Q2 2024 India Rooftop Solar Market Report. The capacity addition was about a 26% year-over-year (YoY) increase from the 873 MW installed in 1H 2023. Rooftop solar capacity additions in the second quarter (Q2) of 2024 were unprecedented, with 731 MW, up 89% YoY from 388 MW. Sequentially, capacity additions grew by 99% from 367 MW. Rooftop solar accounted for almost 15% of total solar installations in the quarter.

Rajasthan has become the first state in India to achieve more than 50% solar in its total installed power capacity, according to Mercom’s India Solar Project Tracker. The state has approximately 23 GW of solar capacity, representing 51% of its total installed power capacity. Solar energy also dominates Rajasthan’s renewable portfolio, accounting for 76% of its total installed renewable energy capacity. In 2022, Rajasthan became the first state in India to surpass 10 GW of cumulative large-scale solar installations. Rajasthan is the top solar state in India, housing a quarter of India’s cumulative large-scale solar capacity.

With over 880 million internet users and a thriving tech sector, India’s data center industry has seen explosive growth in recent years and is poised to accelerate with the advent of artificial intelligence. This expansion, however, comes with a significant electricity demand, straining the country’s already stressed power grid. Power demand from data centers in India grew at 4.4% year-on-year to reach 139 billion kWh in June 2023, according to Rohan Sheth, Vice President, Colocation & DC Build at data center company Yotta. Meanwhile, the International Energy Agency estimates that by 2030, data centers alone will consume about 8% of total energy globally. Data centers currently consume about 1-1.5% of global energy and contribute to 0.3% of global emissions.

The Central Electricity Authority (CEA) has approved two pumped hydro storage projects (PSPs) with a cumulative capacity of 2,600 MW. The Power Ministry said the CEA approved the two projects in record time. The approved PSPs were the 600 MW Upper Indravati project in Odisha, which is being developed by the Odisha Hydro Power Corporation, and the 2,000 MW Sharavathy project in Karnataka, which Karnataka Power Corporation is developing. The Power Ministry said that the CEA had received proposals for PSPs with a total capacity of 60 GW to prepare detailed project reports.

The Ministry of New and Renewable Energy (MNRE) has amended the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019. One clause has been modified, and two new clauses have been added. According to the new amended clause, inspection and final enlistment for provisionally enlisted manufacturers must be completed within two months of the application. If the National Institute of Solar Energy has completed the inspection but MNRE has not received the recommendation, the provisional enlistment will automatically become final after two months. The provisional enlistment will be revoked if solar photovoltaic manufacturers cause the inspection delay.

The Central Electricity Regulatory Commission has issued the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024. These regulations seek to ensure, through a commercial mechanism, that grid users do not deviate from their schedule of drawal and injection of electricity in the interest of security and stability of the grid. These regulations will apply to all grid-connected regional entities and other entities engaged in the inter-state purchase and sale of electricity.

The Karnataka Electricity Regulatory Commission (KERC) has introduced the KERC (Implementation of peer-to-peer Solar Energy Transaction) Regulations, 2024 to promote renewable energy and innovative technologies. The regulations, which apply to all distribution licensees and eligible consumers in Karnataka, aim to facilitate the transaction of rooftop solar energy through blockchain-based platforms, enabling consumers to sell surplus power directly to other consumers. The new regulations are built on the KERC (Implementation of Solar Rooftop Photovoltaic Power Plants Regulations, 2016, which allowed consumers to inject energy into the grid under net or gross metering arrangements.

The Ministry of New and Renewable Energy has issued operational guidelines to set up one model solar village in every district of the country under the PM-Surya Ghar: Muft Bijli Yojana. An amount of ₹8 billion (~$95.2 million) has been allocated for this component, with a provision of ₹10 million (~$119,110) in central financial assistance for each model village. The primary objectives of the model solar villages are to facilitate access to clean and green energy in rural areas through rooftop solar systems and to reduce dependency on utilities. The program will also promote solar-based home lighting, water systems, agricultural pumps, and streetlights.

Foreign Direct investment (FDI) in India’s renewable energy sector saw a rise of 50% year-over-year in the financial year (FY) 2023-24. FDI in renewables stood at $3.76 billion (₹315.84 billion) compared to $2.5 billion (₹206.5 billion) the last financial year, according to Ministry of Commerce and Industry data. The cumulative FDI in the renewable sector stood at $17.07 billion (₹1,336.08 billion) between FY 2010-11 and FY 2023-24. Currently, FDI of up to 100% is allowed in the renewable energy sector under the automatic route, with no prior government approval needed.

The Ministry of Power has clarified that energy obtained through open access arrangements, either through a third-party supplier or captive generation, will not constitute a part of the permissible capacity of banked energy. The clarification, which relates to the banking provisions under the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, addresses stakeholder queries about interpreting the permissible quantum of banked energy, particularly concerning the minimum requirement of 30% of total monthly consumption. The calculation of the permissible quantum of banked energy, which must constitute a minimum of 30% of total monthly consumption, is limited to energy procured directly from the distribution licensee.

The launch of the PM Surya Ghar: Muft Bijli Yojana in February of this year has sparked a huge demand for string inverters, with installers saying the supply situation is tight. According to manufacturers, the demand for string inverters has risen as high as 300% since the introduction of the ambitious residential rooftop solar program, which aims at solar systems on the rooftops of 10 million households by 2026-27. The Ministry of New and Renewable Energy has constituted a mission directorate to ensure the achievement of the goals and oversee the day-to-day operations. Since the launch of the latest subsidy program for residential rooftop solar, there has been a 170% increase in applications between February and June 2024, reaching 14.8 million by June.