India added 3.6 GW of solar open access capacity in the first half (1H) of 2024, a 153% increase from the 1.4 GW installed during the same period in 2023, according to the Q2 2024 Mercom India Solar Open Access Market Report. The capacity added in the first half of this year exceeded the total annual installations of any previous year. This growth was driven by the availability of low-cost solar modules imported in earlier quarters. In the second quarter of 2024, India added nearly 1.8 GW of solar open access capacity, a slight decrease of 2.5% compared to the more than 1.8 GW installed in Q1 2024.

The average cost of large-scale solar projects in India fell 2% quarter-over-quarter (QoQ) and 25.7% year-over-year in the second quarter (Q2) of 2024. Since Q1 2023, large-scale solar project costs have dropped for six straight quarters, with an average fall of 6% per quarter. In Q2 2024, the fall in project costs was primarily driven by the fall in module prices. Module costs accounted for 46.8% of the solar project cost in the quarter and witnessed a 3.6% per MW drop QoQ. The findings were published in Mercom India Research’s recently released Q2 2024 India Solar Market Quarterly Update.

Uttar Pradesh recorded the highest quarter-over-quarter (QoQ) growth rate of 4,042% in solar open access installations in the second quarter (Q2) of 2024, according to Mercom’s Q2 2024 India Solar Open Access Market Report. In Q2 of 2024, about 1.8 GW of solar open access capacity was added in the country, a marginal 2.5% drop QoQ and up nearly 152% year over year. Uttar Pradesh ranked third for capacity additions in the quarter, and the installations were up 263.7% compared to the same quarter of the previous year.

India imported more silver in the first four months of 2024 than it did in the whole of last year, and according to data from Silver Academy, it is set to double again. The country imported 4,172 metric tons of silver between January and April 2024, surpassing 3,625 metric tons for all of 2023. This increase is driven by rising solar cell and module manufacturing, tightening global supply, and investor interest.

The scarcity of suitable sites, geographic and environmental constraints, regulatory complexities, and high land acquisition costs pose significant barriers to the growth of wind-solar hybrid power projects. However, the economic benefits of co-located wind and solar hybrid power projects far transcend the challenges with their ability to optimally use the transmission infrastructure. The Indian government has recognized the potential of hybrid power projects and has implemented the National Wind-Solar Hybrid Policy.

Amid surging demand for renewable energy in India, delays in finalizing Power Sale Agreements and Power Purchase Agreements are creating significant obstacles for developers and policymakers alike. In April 2023, the Ministry of New & Renewable Energy introduced an agency-wise bidding calendar for Renewable Energy Implementing Agencies — Solar Energy Corporation of India, NTPC, NHPC, and SJVN — aiming to roll out 50 GW of renewable energy projects annually through FY 2027-28.

The pace of energy transition is contingent on the steady supply of components necessary for project development. Solar is a major component in India’s goal to install 500 GW of non-fossil fuel-based energy capacity by 2030. However, the government’s push to deploy locally manufactured modules for solar projects has created bottlenecks and could jeopardize the growth rate in capacity additions. In the first half of the calendar year 2024, solar projects totaling 14.9 GW were added in India, topping all previous half-yearly and annual installations.

India imported solar cells and modules worth over $774.9 million (~₹64.6 billion) in the second quarter (Q2) of the calendar year 2024, down 16.4% year-over-year (YoY), according to data from the Department of Commerce. Solar modules accounted for 55% of the quarter’s imports, and solar cells 45%. In a quarter-over-quarter (QoQ) comparison, solar module and cell imports dropped by 61.4% from over $2 billion (~₹166.9 billion).

Three government-owned renewable energy agencies, Solar Energy Corporation of India (SECI), SJVN, and NHPC, have been conferred ‘Navratna’ status by the government, which gives them more financial and operational autonomy. Navratna companies can invest up to ₹10 billion (~$117 million) without seeking approval from the Union government. They can also invest up to 15% of their net worth on a single project or 30% in a year, capped at ₹10 billion (~$117 million).

The Gujarat Electricity Regulatory Commission has set a levelized tariff of ₹2.84 (~$0.034)/kWh for wind power projects with capacities below 10 MW commissioned between June 6, 2022, and March 31, 2027. This decision follows the revised competitive bidding guidelines issued by the Ministry of Power, which set the threshold for wind power projects to participate in the competitive bidding process at 10 MW.

The Gujarat Electricity Regulatory Commission has set a levelized tariff of ₹2.76 (~$0.03)/kWh for solar power projects below 5 MW commissioned between April 1, 2023, and March 31, 2027. The tariff pertains to the procurement of power by distribution licensees and others from solar projects in Gujarat. The tariff has been set for a project life of 25 years. The Commission has set an accelerated depreciation benefit of ₹0.28 (~$0.003)/kWh and a net tariff of ₹2.48 (~$0.03)/kWh.

The Maharashtra Electricity Regulatory Commission has included virtual net metering provisions in the Grid Interactive Rooftop Renewable Energy Generating System (Second Amendment) Regulations, 2024. The virtual net metering provisions will help consumers of multistorey residential buildings who find installing rooftop solar in common spaces difficult.

Tamil Nadu has issued the Pumped Storage Projects (PSP) Policy 2024 to harness the potential of PSPs to optimize renewable energy utilization, promote sustainable energy growth, and attract public and private investments. The policy has set timelines for various stages of execution, with seven years allowed for PSP completion and commissioning.

The Ministry of New and Renewable Energy has allowed rooftop solar vendors under PM Surya Ghar: Muft Bijli Yojana from adjacent states to work in Union Territories. Under the program, vendors registered with one distribution company (DISCOM) are allowed to work with multiple DISCOMs in the same state. The government of India launched the program on February 13, 2024, to install rooftop solar projects in ten million households.

Maharashtra State Electricity Distribution has introduced new guidelines for the state to implement Green Energy Open Access. These rules apply to both existing and new consumers. The Green Open Access Rules, 2022 allows consumers to generate, purchase, and consume green energy, including energy from waste-to-energy plants, through open access. Under the new guidelines, consumers with a contract demand or sanctioned load of 100 kW or more can access green energy through open access, provided they meet specific metering requirements.

The Tamil Nadu government has announced wind power projects repowering regulations aimed to replace old wind turbines and optimize wind energy potential. The Tamil Nadu Repowering, Refurbishment & Life Extension Policy for Wind Power Projects, 2024, seeks to increase the state’s overall installed wind power capacity and generation and provide a supportive framework for Wind Energy Generators.

The Karnataka Electricity Regulatory Commission has clarified that if a rooftop solar consumer switches from a net metering arrangement to a gross metering arrangement and carries out wiring modifications, the distribution companies must execute a Supplemental Power Purchase Agreement to formalize the change. In a July 2022 order, the Commission said that the net metering facility for rooftop solar consumers would not be available if they use power from other sources or captive sources through an open access mechanism.

The Ministry of New and Renewable Energy has issued guidelines to implement viability gap funding (VGF) for 1 GW offshore wind energy projects. The VGF program for 1 GW offshore wind projects to be commissioned until the financial year 2031-2032 has an outlay of ₹68.53 billion (~$816.88 million). The nodal agency, National Institute of Wind Energy has identified a 500 MW project site off the Gujarat coast.

The Ministry of Power has released the guidelines for installing and operating electric vehicle chargers. According to the guidelines, any entity can establish a charging infrastructure, and setting up and operating EV charging stations is a de-licensed activity. The “Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure, 2024,” will supersede all the previous versions issued by the ministry.