India’s total Battery Energy Storage System (BESS) capacity reached 219.1 MWh as of March 2024, according to Mercom India Research’s newly released report, India’s Energy Storage Landscape. According to the report, 1.6 GWh (~1 GW) of standalone BESS, 9.7 GW of renewable energy projects with energy storage, and 78.1 GW of pumped hydro projects were in various stages of development (60 GW under survey and investigation, and 18.1 GW under development) as of March 2024.

Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in the solar sector reached $16.6 billion in the first half of 2024, marking a 10% year-over-year (YoY) decrease from $18.5 billion. Despite this decline, the number of deals increased by 9%, with 87 deals in 1H 2024 compared to 80 deals in 1H 2023. The numbers were revealed in Mercom Capital Group’s newly released 1H and Q2 2024 Solar Funding and M&A Report.

Corporate funding for energy storage companies surged to $15.4 billion across 64 deals in the first half (1H) of 2024, reflecting a 117% increase from the $7.1 billion in 59 deals in 1H of 2023. The top five energy storage VC funding deals in the first half of 2024 were Sila $375 million; EnerVenue $308 million; Natron Energy $189 million; Ascend Elements $162 million; and Antora Energy $150 million. There were 14 M&A transactions in 1H of 2024, an increase from the eight recorded in 1H of 2023.

Union Finance Minister Nirmala Sitharaman, in the first Budget under a new coalition government, laid out a series of measures to promote clean energy adoption and develop critical mineral supply chains. She highlighted “Energy Security” as one of the nine pillars for Budget 2024. The allocation for the solar sector has surged by 75% from the previous year’s revised estimate, now set at ₹86.49 billion (~$1.03 billion). However, the wind energy sector allocation has decreased by 12.7% to ₹8 billion (~$95.6 million).

Inspire Clean Energy, a Mumbai-based solar asset, operations and maintenance management company, emerged as the winner of Mercom’s Second Startup Pitch Competition for Cleantech Companies, held during the Mercom India Renewables Summit 2024, a flagship annual event where industry leaders converge to discuss the future of clean energy in India. The company was chosen as the winner for its anti-theft lock, which was designed to eliminate cable theft in large-scale solar projects.

At the ongoing Mercom India Renewables Summit 2024 in New Delhi, Mercom India announced the winners of the fourth annual Mercom India Awards. These prestigious awards honor the exceptional contributions of organizations that are propelling India’s clean energy transition and championing the country’s environmental goals through remarkable innovation and visionary leadership.

India’s ambitious push for solar energy is facing a significant hurdle: A shortage of domestically produced solar modules. Subsidy-supported residential rooftop solar projects are facing a shortage of locally-made solar cells. Even if available, timely supply is not guaranteed and comes at a premium. In some cases, owing to the shortage, installers have even resorted to using second-hand solar modules. A West Bengal-headquartered solar company explained, “Due to the high prices of DCR modules, many installers have started using second-hand modules, labeling them with new warranties. These used modules are refurbished by manufacturers and are available at significantly lower prices.”

Andhra Pradesh experienced renewed growth in open access solar capacity additions in Q1 2024, after a weak four quarters in 2023. The state accounted for the second-highest solar open access capacity (21%) in Q1 after no solar open access projects were commissioned in the previous quarter. India added 1.8 GW of new solar open access capacity in Q1 2024, the most in any quarter to date, with the top five states accounting for 79.3% of the new installed capacity, according to the recently released Q1 2024 Mercom India Solar Open Access Market Report.

The PM Surya Ghar Program, which aims to install 10 million rooftop solar projects across India, continues to grapple with challenges ranging from subsidy disbursements to incomplete information on the Jan Samarth Portal used for processing loans. Glitches have plagued the PM Surya Ghar National Portal for the past two months. With an outlay of ₹750 billion (~$9.04 billion), the program aims to increase residential rooftop solar capacity and empower households to generate electricity until 2026-27, but the sputtering rollout has cast a shadow on the target.

India’s energy landscape is on the brink of a transformative shift, driven by the urgent need to address climate change, energy security, and economic growth. The transition to renewable energy, supported by policy initiatives, technological advancements, and international collaboration, is an urgent national imperative. With an ambitious target of 500 GW of non-fossil energy capacity by 2030 and a net-zero goal by 2070, India is positioning itself as a leading green energy market.

India is working to enhance its domestic manufacturing capabilities for renewable energy projects and to fortify local supply chains to achieve its clean energy goals. The country’s domestic solar manufacturing sector is experiencing a significant transformation driven by government initiatives and industry commitment. As the country strives for self-reliance in renewable energy production, key stakeholders navigate challenges and opportunities in a rapidly evolving landscape.

Renewable energy adoption by India’s Commercial and Industrial (C&I) sector is experiencing rapid growth, with demand for clean energy solutions increasing significantly over the past two years. This surge in adoption is driven by falling renewable energy costs and supportive policies in several states. The C&I renewable energy market has seen remarkable expansion, nearly doubling in size over the last two years, Kiran Kumar Perka, Head of Open Access C&I at O2 Power, said that the demand is growing multifold, The World Bank has approved $1.5 billion in financing to bolster India’s efforts in developing low-carbon energy. The initiative, part of the second low-carbon energy programmatic development policy operation, aims to foster a robust market for green hydrogen, expand renewable energy, and stimulate investments in low-carbon energy.

The Asian Development Bank (ADB) has approved loans of $240.5 million to finance rooftop solar systems in India. The financing will be provided to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) to offer loans to developers and end-users for installing rooftop solar systems across India. ADB will allocate $90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD will receive $150 million, which includes $80 million from ADB’s ordinary capital resources and $70 million from the CTF.

Public infrastructure finance company REC Limited has secured a green loan of JPY31.96 billion (~$200 million) from Deutsche Bank‘s GIFT City branch to fund green projects in India. This green financing is one of the first JPY-denominated green loan transactions for Deutsche Bank at GIFT City. According to REC, this facility underscores its commitment, along with its partners, to support projects that adhere to stringent environmental standards, promote renewable energy, and contribute to reducing carbon emissions across India.

DhaSh PV Technologies has announced an investment of ₹3.46 billion (~$41.4 million) in a solar photovoltaic (PV) manufacturing plant in the Sira Industrial Area of Tumkur, Karnataka. The facility will focus on producing solar PV junction boxes with an annual capacity of 50 GW. The plant will also manufacture 1,000 km of solar cables and fully indigenous diodes daily.

Ohmium International, a provider of green hydrogen solutions, has launched a gigafactory in Doddaballapura, near Bengaluru. The facility, spanning 14,000 square meters, will produce 2 GW of Proton Exchange Membrane (PEM) electrolyzers annually, with plans to expand production capacity to 4 GW. Ohmium’s India subsidiary had been chosen as the preferred partner by NTPC Renewable Energy Limited (REL) to deploy Ohmium’s PEM electrolyzers in projects totaling 400 MW.

The Ministry of New and Renewable Energy plans to install rooftop solar systems on all central and state government buildings by December 2025 as part of the recently approved PM Surya Ghar: Muft Bijli Yojana. With an outlay of ₹750 billion (~$9.04 billion), the program aims to increase residential rooftop solar capacity and empower households to generate electricity until 2026-27.