Q3 2023 INDIA SOLAR MARKET UPDATE - 1.9 GW INSTALLED IN Q3 2023

During the first nine months (9M) of 2023, 5.6 GW of solar was installed in India. Solar capacity additions fell nearly 47% compared to 10.5 GW installed in 9M 2022, according to the newly released Q3 2023 India Solar Market Update by Mercom India Research. Utility-scale installations dropped more than 54% year-over-year (YoY) to 4.2 GW.

In Q3 2023, India added 1.9 GW of solar capacity. The installations increased almost 6% quarter-over-quarter (QoQ) but dropped nearly 34% YoY. The country’s cumulative installed solar capacity, including total rooftop solar installations, surpassed 69 GW as of September 2023.

Large-scale solar projects accounted for nearly 77% of capacity additions in Q3 2023, with rooftop solar making up the rest (23%). Over 1.4 GW of large-scale solar was added in the quarter, up 4.1% QoQ but down nearly 43% YoY.

The country’s utility-scale solar development pipeline stood at nearly 77 GW as of September 2023, and over 68 GW of projects tendered were pending auction at the end of Q3 2023.

Extensions granted to several large-scale solar and hybrid power projects and those facing delays due to land and transmission issues primarily affected installations in 9M 2023. The challenges in securing transmission connectivity increased further with the change in project timelines considered for the grant of connectivity under the amended GNA regulations. During Q3, the project developers also lacked clarity on application procedures under the amended regulations for long-term access to transmission networks. However, the Central Electricity Regulatory Commission issued clarifications towards the quarter’s end, which is expected to ease the process over the next few quarters. Several projects stuck in the habitat of the Great Indian Bustard (GIB) are still waiting for the Supreme Court order to receive transmission connectivity.

In Q3 2023, Gujarat led all states, accounting for over 24% of large-scale solar installations. Karnataka and Maharashtra followed, accounting for more than 19% and nearly 18% of quarterly capacity additions.

Rajasthan remained the leading state for cumulative large-scale solar installations, adding nearly 17 GW at the end of Q3 2023, accounting for over 28%. Karnataka and Gujarat came in next with almost 16% and 11% share, respectively.

Average large-scale solar project costs fell 4.9% QoQ and 13.4% YoY. Project costs have decreased for three quarters in a row beginning in Q1 2023 after rising for ten consecutive quarters.

In 9M 2023, India added over 12 GW of new power capacity, with solar accounting for nearly 46% of the total.

Key Highlights from Mercom India Research’s Q3 2023 India Solar Market Update:

• In 9M 2023, India added 5.6 GW of solar capacity, an almost 47% drop YoY.

• In Q3 2023, 1.9 GW of solar was installed, a nearly 6% increase QoQ and 34% drop YoY.
• Large-scale solar installations accounted for almost 77%, and rooftop solar accounted for 23%.
• In Q3 2023, Gujarat was the top state for large-scale solar installations, followed by Karnataka.
• Cumulative installed solar capacity surpassed 69 GW as of September 2023.
• The utility-scale project development pipeline stood at almost 77 GW as of September 2023.
• Solar accounted for nearly 46% of new power capacity added in 9M 2023.

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