2023 Q4 AND ANNUAL MERCOM INDIA SOLAR OPEN ACCESS MARKET REPORT – 3.2 GW INSTALLED IN 2023
In calendar (CY) 2023, India added 3.2 gigawatts (GW) of solar open access capacity, an increase of 5.7% compared to the 3 GW installed in 2022, a record for annual installations, according to 2023 Q4 & Annual Mercom India Solar Open Access Market Report.
The extension of the Approved List of Models and Manufacturers (ALMM) order until March 2024 and falling module prices spurred commercial and industrial (C&I) consumers to commission pending projects and sign new PPAs. Declining system costs, favorable policies, and the Green Energy Open Access Rules in several states fueled solar installations through the open access market in 2023.
Karnataka led all states and accounted for 27.9% of open access solar capacity in 2023. Gujarat and Maharashtra followed with 16.4% and 16.2% share of annual installations, respectively. The top five states accounted for 84.1% of the total installations in the year.
India added 831.2 MW of open access solar in Q4 2023, a 22.8% quarter-over-quarter (QoQ) drop, but up 6.2% year-over-year (YoY) compared to 782.5 MW in Q4 2022.
While lower PPA prices resulted in higher capacity additions YoY, installations dropped QoQ as several developers completed their projects in Q3 and signed new PPAs in Q4, which are expected to increase capacity additions in the upcoming quarters.
In Q4 2023, Tamil Nadu led all states, accounting for 24.8% of total open access solar installations. Rajasthan ranked second and Karnataka third with a 23.3% and 15.8% share of total capacity additions in Q4, respectively.
The top five states accounted for 83.6% of solar open access installations in Q4 2023.
A detailed analysis of the solar open access market, retail electricity tariffs, and open access charges and costs for seventeen states has been covered in the report.
The average PPA prices, net landed cost, banking regulations, short-term transactions, and open access policies and regulations released in Q4 2023 are also featured in the report.
Key Highlights from Mercom India Research’s Q4 2023 India Solar Open Access Market Report
- India added over 3.2 GW open access solar in CY 2023, up 5.7% from the 3 GW installed in 2022
- Karnataka led all states, contributing 27.9% of new open access solar capacity in 2023
- India added 831.2 MW of open access solar in Q4 2023, a 22.8% QoQ drop from 1,077 MW installed in Q3 2023
- The total installed solar capacity in the open access segment stood at 12.2 GW as of December 2023
- 13.9 GW of open access solar projects were in the development pipeline at the end of CY 2023
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