India installed 1.9 GW of new solar capacity during the first quarter (Q1) of 2023, a decline of 48% year-over-year (YoY), according to Mercom India Research’s newly released Q1 2023 India Solar Market Quarterly Update.

On a quarter-over-quarter (QoQ) basis, the installations fell 30%.

Nearly 1.4 GW of utility-scale solar was installed during the quarter, falling 56% YoY and 37% QoQ. Utility-scale solar accounted for almost 74% of the installations during the quarter.

“Various challenges contributed to the decline in solar capacity additions during the quarter. The extension of commissioning timelines for solar power projects under the CPSU Phase II program by MNRE further affected the schedule. Consequently, several projects initially scheduled for completion in the quarter had to be postponed to later in the year,” said Priyadarshini Sanjay, Managing Director of Mercom India.

“However, the industry is adjusting project timelines to ensure successful, timely implementation. The recent extension of the ALMM rules brings relief to developers who have been struggling to procure modules,” Sanjay added.

India’s cumulative installed solar capacity now stands at 64.5 GW. The country has a utility-scale project pipeline of over 58 GW. Nearly 58 GW of tendered projects await auction.

Multiple government agencies announced over 13.8 GW of tenders in Q1 2022, an increase of 172% YoY and 43% QoQ.

Rajasthan, Karnataka, and Gujarat were the top three states for large-scale solar capacity in the quarter, accounting for 82% of installations.

Rajasthan led large-scale solar capacity additions with 16.1 GW, accounting for over 29% of total installations.

However, the installations in the state were down by 60.7% YoY.

According to Ms. Sanjay, the decline in installations in Rajasthan was mainly attributed to the delays in power evacuation approvals, land acquisition challenges, and projects stranded in the Great Indian Bustard habitat.

The average system cost of large-scale solar projects was down 5% QoQ. Large-scale solar system costs declined for the first time in eleven quarters due to the decline in cell and module costs.

According to the report, India added over 4.1 GW of total power capacity during the quarter, with 45% of the new capacity coming from solar power.

Mercom’s India Solar Q1 2023 report is 78 pages and covers all facets of India’s solar market. For the complete report, visit: https://mercomindia.com/product/q1-2023-india-solar-market-update