2023 Q4 AND ANNUAL INDIA SOLAR MARKET UPDATE - 1.8 GW INSTALLED IN Q4 2023

India installed 7.5 gigawatts (GW) of solar capacity in the calendar year (CY) 2023, a 44.1% decrease year-over-year (YoY) from 13.4 GW installed in CY 2022, according to recently released Q4 & Annual 2023 India Solar Market Update by Mercom India Research.

In 2023, large-scale solar installations fell 50.8% YoY to 5.8 GW from 11.7 GW in 2022. Large-scale solar accounted for 77.2% of the annual capacity additions, and rooftop solar contributed 22.8%. In Q4 2023, India added 1.8 GW of solar capacity, a 6.6% drop from 1.9 GW installed in Q3 2023. Installations fell 41.3% from. 3.1 GW in Q4 2022. Large-scale solar projects contributed 77.4% to the quarter’s capacity additions, and rooftop solar 22.6%.

As of December 2023, the cumulative installed solar capacity stood at 72 GW.

Delayed large-scale projects auctioned by Solar Energy Corporation of India (SECI), NHPC, NTPC, and Indian Renewable Energy Development Agency (IREDA), which were granted extensions between December 2022 and June 2023, would likely contribute significantly to capacity additions in 2024, raising the annual installation numbers.

Average large-scale solar system costs dropped through 2023. Q4 2023 recorded the lowest-ever quarterly average project cost since the onset of large-scale solar capacity additions in the country. Average large-scale system costs in Q4 2023 fell 14.3% quarter-over-quarter (QoQ) and 26.6% YoY.

Rajasthan, Karnataka, and Gujarat were the top three states for cumulative large-scale solar capacity, accounting for 54.8% of installations in the country as of December 2023.

Key Highlights from Mercom India Research’s Q4 & Annual 2023 India Solar Market Update:

• India added 7.5 GW of solar in CY 2023, a 44.1% drop from 13.4 GW installed in CY 2022
• In Q4 2023, India added 1.8 GW of solar, down 6.6% QoQ and 41.3% YoY
• The cumulative installed solar capacity in India reached nearly 72 GW as of December 2023
• India’s large-scale solar project pipeline stood at 105.3 GW, with another 70.6 GW of projects tendered and pending auction
• Rajasthan, Karnataka, and Gujarat were the top three states for cumulative large-scale solar installations
• Solar accounted for 48.5% of new power capacity additions in 2023
• Renewable energy sources accounted for 68.2% of new power capacity added in 2023

Contact Mercom for pricing: reports@mercomindia.com or call us at +91-080-41211148 or +91-080-23560436.