India added 6.9 GW of solar open access capacity in 2024, a 77% year-over-year (YoY) increase from 3.9 GW, according to the newly-released Mercom India Q4 & Annual 2024 India Solar Open Access Market Report.

This growth represents the highest annual installations recorded in the solar open access segment. The fourth quarter (Q4) of 2024 alone saw 2.1 GW of new installations, reflecting a 92% quarter-over-quarter (QoQ) growth from 1.1 GW and a 142% YoY increase from 852.7 MW.

The increase in solar open access was primarily driven by the availability of low-cost Chinese modules, which were imported before the reimposition of the Approved List of Models and Manufacturers from April 2024.

Developers rushed to commission projects in Q1 before the order deadline, leading to a spike in capacity addition. However, uncertainty in Q2 and Q3 resulted in a temporary slowdown as stakeholders awaited possible exemptions. With no confirmation of further exemptions, developers resumed projects in Q4 to meet their sustainability commitments, leading to another installation growth.

“Open access installations saw remarkable growth in 2024 as businesses increasingly prioritized cleaner power generation to meet green mandates and reduce electricity costs. However, rising component prices, along with land procurement and grid connectivity hurdles, are creating challenges. To maintain this growth trajectory, the deadline for inter-state transmission system (ISTS) charge exemptions, set to expire on June 30, must be extended. Without it, continued growth in the open access segment could be at risk,” said Raj Prabhu, CEO of Mercom Capital Group.

State-Wise Installations

Maharashtra led India’s solar open access market in 2024, accounting for 18% of the total installations. Rajasthan and Karnataka followed, contributing 15% and 14% respectively. Maharashtra (24%), Uttar Pradesh (21%), and Gujarat (20%) had the highest capacity additions in Q4.

By the end of 2024, India’s cumulative installed solar open access capacity stood at 20.2 GW. Karnataka led the sector with 25% of the total capacity, followed by Maharashtra (16%) and Gujarat (12%).

Priya Sanjay, Managing Director, Mercom India, commented, “Policy flip-flops, price fluctuations, and distribution company (DISCOM) reluctance to approve projects have not been able to thwart the demand for solar open access as industries rush to advance their clean energy initiatives. 2025 will be a year to watch companies exporting to European markets report their green energy progress under the Carbon Border Adjustment Mechanism, which is expected to be fully in place by 2026.”

The upcoming solar open access projects pipeline includes over 25.7 GW of capacity under development and pre-construction by the end of 2024.

The states with the highest project activity were Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and Gujarat.

Sanjay said these states are preferred due to their business-friendly policies, land availability, and robust infrastructure. She emphasized that seamless approvals and economic feasibility make these regions attractive for developers.

Adani Green Energy was the top seller in the Green Day-Ahead Market (G-DAM), comprising 34% of the total electricity sold in the power exchanges. On the buyer’s side, Punjab led the electricity purchases, contributing 28% of traded electricity.

Despite the overall growth in the sector, the cleared volume of renewable energy certificates on the Indian Energy Exchange (IEX) fell by 58% QoQ. Similarly, the Green Term Ahead Market (G-TAM) trading volume declined by 67% QoQ.

Outlook

Sanjay was optimistic about the continued growth in solar open access in 2025, particularly as commercial and industrial consumers move toward sustainability.

While the open access solar market continues to grow, industrial consumers still face challenges related to state-specific regulations. Sanjay pointed out that businesses operating across multiple states struggle with varied regulatory frameworks, making procurement decisions complex.

Sanjay highlighted the need for streamlined approval processes to make solar open access more attractive. Delays in DISCOM clearances often hinder project implementation, negating the benefits of favorable policies. She suggested that regulatory bodies ensure timely approvals and maintain predictable pricing structures to prevent excessive charges that could erode savings.

Additionally, she stressed that states should align their policies with central government guidelines to create a more uniform and stable regulatory environment, encouraging higher adoption of solar open access.

The Q4 & Annual 2024 Mercom India Solar Open Access Market Report is 64 pages long and covers vital information and data on the market.

For the complete report, visit: https://www.mercomindia.com/product/q4-2024-mercom-india-solar-open-access-market-report