India added 16.4 GW of solar capacity in the first nine months (9M) of 2024, a 167% year-over-year (YoY) increase from 6.2 GW in 9M 2023, according to Mercom India Research’s Q3 2024 India Solar Market Update. These installations surpassed all previous nine-month and annual records, driven by the commissioning of several delayed projects.

India’s cumulative installed solar capacity stood at 89.1 GW as of September 2024, with utility-scale projects accounting for 86% and rooftop solar comprising 14%. Solar energy now constitutes 20% of India’s total installed power capacity and 44% of its renewable energy capacity.

Here is a list of developments that significantly impacted the Indian solar sector in 2024.

PM Surya Ghar

PM Surya Ghar: Muft Bijli Yojana was launched by Prime Minister Narendra Modi on February 15, 2024 with a target of installing rooftop solar systems in 10 million households. The program has an outlay of ₹750 billion (~$9.04 billion). Under the program, households will be provided with a subsidy to install solar panels on their roofs. A subsidy of ₹30,000 (~$361)/kW will be provided for residential rooftop solar systems up to 2 kW. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for installations exceeding 3 kW, the total subsidy will be capped at ₹78,000 (~$939).

ALMM Reimposition

The Ministry of New and Renewable Energy (MNRE) notified the reimposition of the Approved List of Models and Manufacturers (ALMM) regulation effective April 1, 2024. The notification, however, eliminates the exemptions for projects under open access and rooftop solar by private parties, announced in the February order. MNRE clarified that the ALMM  List I (Modules) applies only to solar projects with bid submission deadlines on or after April 10, 2021. Projects with bid submissions before this date are exempt from the ALMM mandate.

ALMM for Solar Cells

The MNRE introduced an amendment to include solar cells in the ALMM order effective June 2026. The amendment aims to establish a separate list for solar cells (List-II) as domestic manufacturing capacity expands. Solar projects will be required to use modules listed in ALMM List-I, made with cells from List-II.

Anti-Dumping Duty on Solar Glass 

The Ministry of Finance imposed provisional anti-dumping duties on textured, tempered, coated, and uncoated solar glass imported from China and Vietnam. This decision follows a preliminary investigation opened by the Directorate General of Trade Remedies (DGTR) in February 2024, which found evidence of dumping practices. The preliminary findings concluded that the subject goods were being exported to India from China and Vietnam at dumped prices. The dumping led to a significant increase in imports of these goods from these countries, both in absolute terms and in relation to domestic production and consumption, causing material injury to the domestic industry.

Unverified DCR Solar Modules Won’t be Accepted in Government Programs

The government mandated that all domestic solar cell and module manufacturers file all data on the Domestic Content Requirement (DCR) portal from January 1, 2024.

From December 1, 2024, any solar module whose DCR credentials cannot be verified through the DCR verification portal will not be accepted under MNRE’s CPSU Program Phase-II, PM Surya Ghar: Muft Bijli Yojana and PM KUSUM. The National Institute of Solar Energy operates the portal.

To ensure better traceability of domestically produced solar cells and modules, the ministry has amended the ALMM order to include the new provision about DCR verification.

Supreme Court Relooks GIB Order

The Supreme Court considered limiting the undergrounding of power transmission lines to the Priority Area of 3,163 sq km of the endangered Great Indian Bustard (GIB) habitat. The three-judge bench headed by Chief Justice D Y Chandrachud also constituted an expert committee to determine the scope, feasibility, and extent of overhead and underground electric lines in the area identified as a Priority Area by the Wildlife Institute of India in Rajasthan and Gujarat.

However, the easing of restrictions in the Potential Area is subject to the condition that the expert committee lay down parameters covering Priority and Potential areas. The committee would also have to make recommendations for installing bird diverters.

In an effort to balance the conservation imperative of conserving the bird species and the interests of renewable energy development, the court said recalibrating its April 2021 directions relating to undergrounding of high and low-voltage power lines was required. Its earlier order covered an area of 80,000 sq km, which included both the Priority Area and Potential Area of the GIB habitat.

CBIC Revokes Warehousing of Imported Solar Goods

The Central Board of Indirect Taxes and Customs (CBIC) revoked the permission granted to solar developers to warehouse imported solar modules effective from December 17, 2024. CBIC ruled that goods imported for solar power generation will not be allowed to undergo any manufacturing processes or operations in a warehouse. Any value addition, assembly, or process within bonded warehouses under Section 65 of the Customs Act that ultimately produces electricity is now prohibited.

Large Consumers, Captive Projects Exempted from Transmission License

The Ministry of Power amended the Electricity Rules to allow entities commissioning captive power projects or energy storage systems or a consumer, with a load of at least 25 MW for interstate transmission systems or 10 MW for intra-state transmission systems to be exempted from obtaining a license to establish, operate, or maintain a dedicated transmission line to connect to the grid. However, this exemption is contingent upon the company, individual, or consumer adhering to the regulations, technical standards, guidelines, and procedures specified under the provisions of the Act.