In the first half (1H) of 2024, India added 3.6 GW of solar open access capacity, a 153% increase from the 1.4 GW installed in 1H 2023, according to Mercom’s Q2 2024 India Solar Open Access Market Report. The capacity added in the first half of this year surpassed the total annual installations of any previous year.

India’s cumulative installed solar open access capacity was 16.3 GW as of June 2024. In Q2 2024, about 1.8 GW of solar open access capacity was added in the country, a marginal 2.5% drop quarter-over-quarter (QoQ) and a 152% year-over-year (YoY) increase.

With the suspension of the Approved List of Models and Manufacturers (ALMM) order between Q4 2023 and Q1 2024, developers imported significant capacities of modules during the period driving project installations in 1H 2024.

Impacts of ALMM Reimpositon in 1H 2024

In Q2 2024, the reimposition of the ALMM order affected project costs and power purchase agreement (PPA) rates as the open access developers were required to use enlisted Indian modules. The average prices of Indian mono PERC modules were 23.3% higher than Chinese mono PERC modules in Q2.

Projects totaling almost 2 GW scheduled for commissioning in Q2 were delayed as several open access developers had hoped for exemptions from the ALMM order to be announced after the general elections. In the absence of the ALMM exemption, solar open access projects totaling over 5 GW scheduled for commissioning in 2024 were pushed to 2025.

Outlook for 2024

The prices of ALMM enlisted modules had fallen significantly at the time of publication of this article, and the enlisted capacity has reached 56.5 GW per the updated List – I at the end of September 2024. However, module quality and timely availability are still a worry for developers and EPC companies. Several developers claimed that they are procuring cells and entering into tolling arrangements with manufacturers to ensure module quality and timely project commissioning.

Several developers opined that ALMM wouldn’t be a challenge if manufacturers could ensure timely delivery and lower module prices in the upcoming quarters.

Mercom’s solar open access tracker provides all vital project details for installed and pipeline captive, group captive, third-party, and projects under solar parks in the country.

The Q2 2024 Mercom India Solar Open Access Market Report is 58 pages long and covers state-wise open access charges, electricity tariffs, PPA tariffs, installed and pipeline project capacities, and policy updates, along with other critical information and data on the market.