Global corporate funding in the solar sector in 2024 reached $26.3 billion, a 24% year-over-year decline from $34.4 billion, according to Mercom’s Annual and Q4 2024 Solar Funding and M&A Report. There were 157 deals in 2024 compared to 161 deals in 2023. Global venture capital and private equity funding in the solar sector in 2024 reached $4.5 billion in 60 deals, a 36% decline from $7 billion raised in 70 deals in 2023.

There is a remarkable shift in the adoption of renewable energy in India, particularly with solar open access growing as a compelling choice for commercial and industrial power consumers. According to Mercom India Solar Open Access Report, in the first nine months of 2024, 4.8 GW of solar open access capacity was added, a 69% year-over-year increase from 2.8 GW installed in 9 M 2023.

According to Mercom Capital Group’s newly released Annual and Q4 2024 Funding and M&A Report for Storage & Grid, corporate funding for energy storage companies, including venture capital investments, public market funding, and debt financing, increased 5% year-over-year. Corporate funding for energy storage companies grew to $19.9 billion in 116 deals in 2024, compared to $19 billion in 120 deals in 2023.

At the end of December 2024, solar photovoltaic projects represented 21.2% of India’s total installed power capacity and 46.8% of its total installed renewable capacity. India’s installed solar capacity grew by 10.5% quarter-over-quarter and 57.2% year-over-year. Renewables, including hydro projects, accounted for 45.4% of the country’s installed power capacity, totalling 209.7 GW by the end of 2024.

Kerala emerged as a leader in residential rooftop solar installations, with the PM Surya Ghar program being a major catalyst. The state has achieved a 60.13% application-to-installation conversion rate, reflecting high implementation efficiency. This ratio highlights the active participation of distribution companies and empaneled vendors.

Maharashtra and Rajasthan have been frontrunners in adopting the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program Component C, demonstrating progress in scaling renewable energy infrastructure to meet the dual objectives of sustainable agriculture and energy security.

The Karnataka High Court struck down the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, along with the Karnataka Electricity Regulatory Commission (KERC) (Terms and Conditions for Green Energy Open Access) Regulations, 2022. The court held that the Union government cannot exceed the authority granted under the Electricity Act while enacting such regulations.

Government agencies in India’s power sector suggested that states find methods to monetize brownfield electricity transmission assets to attract investments required for creating new transmission infrastructure. According to the Central Electricity Authority’s National Electricity Plan, an investment of ₹9.16 trillion (~$106 billion) is required to create new transmission infrastructure by 2032.

As India’s renewable energy sector continues to grow, the spotlight is on Finance Minister Nirmala Sitharaman as she prepares to present the Union Budget 2025. As India strives to achieve its ambitious target of 500 GW renewable energy capacity by 2030 and net-zero emissions by 2070, the upcoming budget is expected to be pivotal in shaping the country’s clean energy future.

India added over 800 MW of wind power capacity in the fourth quarter of calendar year 2024, up 45.1% year-over-year from 551 MW. The capacity additions surged 13.3% quarter-over-quarter from 706.6 MW, according to Mercom India Research. Increasing demand for wind-solar hybrid power and improvement in the wind turbine supply chain with project developers undertaking construction and erection activities reduced commissioning timelines.

The Ministry of New and Renewable Energy updated the Approved List of Models and Manufacturers (ALMM) for solar photovoltaic modules. The cumulative module manufacturing capacity under ALMM now stands at 64,568 MW. The latest updates to the provisional ALMM feature Insolar Limited, with a capacity of 1,525 MW, and Visaka Industries (ATUM Division), with a capacity of 16 MW.

The Andhra Pradesh High Court held that a solar power project does not qualify as a ‘works contract’ taxable at 18% goods and services tax (GST); instead, it is a ‘composite supply’ and a moveable property, attracting 5% GST. Mercom had written about how GST intricacies impact the renewable energy sector, requiring a closer look at taxation.

The Ministry of New and Renewable Energy updated the Approved List of Models and Manufacturers (ALMM) for solar photovoltaic modules, adding 3,015 MW of new capacity. The cumulative module manufacturing capacity stands at 67,401 MW. New entries to the list included BVG India adding 367 MW, KLK Ventures adding 33 MW, and SAN Energy and Solution adding 27 MW to the total added capacity.

The Gujarat Energy Development Agency issued detailed procedures, guidelines, and terms for establishing off-grid solar, wind, and wind-solar hybrid power projects. The guidelines aim to help isolated entities meet Renewable Purchase Obligation requirements through off-grid renewable solutions, encourage sustainable energy use in areas without grid connectivity, and expand diverse energy technologies to enhance energy security and environmental sustainability.

The Ministry of New and Renewable Energy released the “Solar Systems, devices, and Components Goods Order, 2025,” setting performance standards for solar modules, inverters, and storage batteries. The order aims to enhance the quality and reliability of solar components and boost the adoption of high-performance solar technologies.

KERC released draft regulations to strengthen the framework for ancillary services to maintain the state’s grid. These regulations are driven by an increasing renewable energy penetration, rising demand, and diverse grid integration challenges. KERC has invited stakeholders’ objections, suggestions, and views on the proposed draft within 30 days.

The Chhattisgarh State Electricity Regulatory Commission issued the Draft Chhattisgarh State Electricity Regulatory Commission (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2025. The regulations apply to all entities connected to the state transmission utility, inter-state or intra-state within Chhattisgarh.

The Uttar Pradesh Electricity Regulatory Commission approved the Uttar Pradesh New and Renewable Energy Development Agency’s revised tender to supply 3,205 MW of solar power to Uttar Pradesh Power Corporation under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM- KUSUM) Component C2.

The Joint Electricity Regulatory Commission released draft resource adequacy regulations for the state of Goa and the union territories (UTs) of Andaman and Nicobar, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, and Puducherry. The regulations aim to enable the implementation of the resource adequacy framework by outlining a mechanism for planning the generation and transmission of resources to reliably meet the projected demand in compliance with specified reliability standards.

The Central Electricity Regulatory Commission reiterated that the approved methodology in the National Load Despatch Centre’s detailed procedure applies to all Deviation Settlement Mechanism Pool Account deficits starting September 16, 2024. It directed the distribution companies to ensure timely payment of dues to avoid delays in compensating ancillary service providers and maintain grid stability.

KERC released the draft Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025. Stakeholders can submit their comments and suggestions by February 15, 2025. This draft follows the Karnataka High Court’s decision to strike down the previous Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules 2022 and the KERC (Terms and Conditions for Green Energy Open Access) Regulations 2022.

The Haryana Electricity Regulatory Commission released draft regulations on the Deviation Settlement Mechanism and related matters. Stakeholders can submit their feedback by February 11, 2025. The Commission aims to maintain grid discipline and security through the commercial mechanism for deviation settlement.