India installed 3.2 GW of rooftop solar capacity in 2024, an 86% increase from 2023, according to Mercom India Research’s newly released Q4 & Annual 2024 India Rooftop Solar Market Report.  The capacity additions were mainly driven by the record commissioning of rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana.

India added 6.9 GW of solar open access capacity in 2024, a 77% year-over-year 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.

Integration of the Domestic Content Requirement verification portal with the PM Surya Ghar: Muft Bijli Yojana portal and stringent solar module verification processes have left rooftop solar installers with a unique challenge. When installers try to update module details on the PM Surya Ghar portal, an error message throws up, saying the module number already exists in the system.

India is witnessing rapid adoption of bifacial modules in rooftop solar installations driven by the decreasing availability of monofacial alternatives and the promise of higher energy yields. Bifacial modules capture sunlight from both sides, offering higher system efficiency. However, many installations fail to consider the structural requirements to optimize bifacial performance.

Solar project developers anticipate a rise in module prices to drive up overall project costs following the recent import duties on solar glass. Recently, the Ministry of Commerce and Industry imposed anti-dumping duty in the range of $658/MT to $664/MT for imports from China and $570/MT to $664/MT from Vietnam. The Ministry also imposed countervailing duties ranging from $539/MT to $664/MT.

As rooftop solar installations under the PM Surya Ghar: Muft Bijli Yojana reach 1 million nationwide, concerns have arisen about the lack of quality checks for the components and the absence of standardization. Several new installers with little or no experience have entered the rooftop solar market to cash in on the increasing consumer demand. Industry insiders say the quality of the installations is being compromised in a rush to meet targets in some states.

In Q4 of calendar year 2024, the average cost of large-scale solar power projects in India fell over 8% year-over-year, according to Mercom’s recently released Q4 and Annual 2024 India Solar Market Update. However, the average project cost rose 1.6% QoQ. The average selling price of India-made modules registered under the Approved List of Models and Manufacturers order rose in Q4 due to high demand and increasing component prices.

At a time when the government is pushing for greater adoption of solar through the PM Surya Ghar: Muft Bijli Yojana, which aims to make households energy-independent, free electricity programs have proved to be an impediment to rooftop solar in some states. When consumers receive up to 300 free units per month in some states, they see little reason to invest in rooftop solar systems.

Indian solar module and cell exports decreased 16% year-over-year to $1.5 billion (~₹129.4 billion) in 2024 from $1.8 billion (~₹152 billion), according to recent data published by the Department of Commerce. Indian solar exports in 2024 were dominated by photovoltaic modules, comprising 97.7% of total shipments, while solar cells made up the remaining 2.3%.

The Government of India launched five pilot projects under the National Green Hydrogen Mission to introduce hydrogen-fueled buses and trucks. The Ministry of New and Renewable Energy had earlier issued guidelines for implementing pilot projects in the transport sector and invited proposals for hydrogen-based vehicles, routes, and refueling stations.

The Ministry of Heavy Industries mandated a 100% domestic content requirement for 18 electric vehicle components under the two-wheeler, three-wheeler, and e-buses segments to avail of subsidy under the PM E-Drive program. MHI has amended the eligibility criteria for the phased manufacturing program components under PM E-Drive.

The Ministry of New and Renewable Energy issued the updated Domestic Content Requirement norms for solar cells. According to the revised guidelines, a solar cell based on crystalline-silicon technology will be considered domestically manufactured only if produced in India using an undiffused silicon wafer, commonly known as a black wafer. These wafers fall under Customs Tariff Head 3818, and all manufacturing processes involved in converting them into solar cells must be carried out within India.

A two-year extension of the Revamped Distribution Sector Scheme aimed at bringing operational efficiencies and financial discipline to India’s power distribution sector is on the cards. The Ministry of Power has told Parliament’s Standing Committee on Energy that the ₹3.3 trillion (~$40.35 billion) program, which was to end in the financial year (FY) 2025-26, needs an extension until FY 2028.

The Ministry of Power directed all states and implementing agencies to award all Battery Energy Storage System contracts by June 2025 to enable the Viability Gap Funding program to be completed by May 2027. The ministry recently told the Parliamentary Standing Committee on Energy that once the contracts are awarded by June, it will take 18 to 24 months for the VGF program to be completed.

The Ministry of Power proposed amendments to refine the regulatory framework governing renewable energy consumption by designated consumers, including electricity distribution licensees, open access consumers, and captive users. The Bureau of Energy Efficiency will oversee the compliance and submit periodic reports to the government.

The Ministry of New and Renewable Energy expanded the Approved List of Module Manufacturers capacity by adding 8,067 MW of solar module manufacturing capacity. Asote Solutions (Ananya Solar), MKU Holdings, and Axitec Energy India, contributing 152 MW, 1,183 MW, and 18 MW, respectively, are the new additions to the list, taking the total number of module manufacturers to 95.

The Haryana Electricity Regulatory Commission issued amendments to the Green Energy Open Access Regulations which were released in 2023. The amendments were finalized after a recent public hearing. One key amendment introduced is regarding the eligibility criteria for open access. Initially, only consumers with contracted 100 kW or more capacity were eligible.

The Central Electricity Regulatory Commission issued the draft (Connectivity and General Network Access to the Inter-State Transmission System) (Fourth Amendment) Regulations, 2025, introducing key changes to connectivity and network access regulations. One of the new clauses defines “entities with restricted access” as renewable energy generating stations or energy storage systems that can inject power only during solar or non-solar hours.

The Himachal Pradesh Electricity Commission released the draft framework for resource adequacy to enable electricity capacity additions to meet the projected demand through a judicious mix of energy contracts at the least cost. The Himachal Pradesh Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2025 apply to the generating companies, distribution licensees, the state load dispatch center, the state transmission utilities, and other grid-connected entities and stakeholders in the state.

The Madhya Pradesh Electricity Regulatory Commission allowed a developer to enhance the direct current capacity of its 25 MW solar project, provided the developer adheres strictly to the existing contractual terms and regulatory framework. However, the Commission has also emphasized that any augmentation should not exceed the contracted alternating current capacity per the power purchase agreement.

Interstate transmission system (ISTS) developers must pay 60% of the land value for municipal corporations and metropolitan area land parcels as compensation for the right-of-way (RoW). The Ministry of Power has issued supplementary guidelines for determining the market rate and RoW compensation for ISTS lines to resolve challenges hindering transmission projects.

Government-owned lender Indian Renewable Energy Development Agency (IREDA) issued its first-ever perpetual bonds worth ₹12.47 billion (~$144.5 million) at an annual coupon rate of 8.4%. By issuing the bonds, IREDA targets enhancing its Tier-I capital for a stronger financial foundation. IREDA also received a fund of ₹244.8 million (~$2.6 million) from the Income Tax Department towards partial relief for the assessment year 2011-12 related to certain disallowances.

Gurugram-based renewable energy services company BluPine Energy secured ₹17.87 billion (~$210 million) in structured financing from the National Bank for Financing Infrastructure and Development. The transaction is structured around creating a restricted group of 14 special purpose vehicles spanning Punjab, Uttarakhand, and Karnataka, with a mix of central and state off-takers.