In the first nine months (9M) of 2024, India added 4.8 GW of solar open access capacity, a 69% year-over-year (YoY) increase from 2.8 GW, according to the Q3 2024 India Solar Open Access Market Report.

The capacity added in the first nine months of 2024 surpassed the annual installations witnessed in previous years.

The availability of low-cost solar module inventory procured before the reimposition of the Approved List of Models and Manufacturers (ALMM) order drove capacity additions in 9M 2024.

In the third quarter (Q3) of the calendar year (CY) 2024, India added about 1.1 GW of solar open access capacity, a 36% quarter-over-quarter (QoQ) fall from 1.7 GW. Installations dropped by 6.5% YoY from over 1.1 GW.

Several projects were delayed in the quarter due to limited transmission infrastructure availability and challenges in land acquisition. Delays in grid connectivity approvals and higher costs of ALMM-enlisted Indian modules compared to imported modules also contributed to the project delays.

“9M 2024 capacity additions were skewed compared to 2023 as developers rushed to import panels before the ALMM was reimposed—modules imported until March were used until June. However, in Q3, the installations started slowing as the inventory of imported modules was exhausted, which made the 9M numbers look great even though Q3 was down. On the positive side, more states announced green energy open access regulations, and the government also provided a clarification on energy banking,” said Priya Sanjay, Managing Director at Mercom India.

In Q3 2024, Maharashtra led solar open access capacity additions, accounting for nearly 27% of installations. Tamil Nadu and Uttar Pradesh followed, accounting for 24% and 15% respectively.

Cumulative installed solar open access capacity stood at 17.8 GW as of September 2024.

Karnataka remained the top state for cumulative installations, accounting for about 29% of solar open access capacity at the end of 9M 2024. Maharashtra and Gujarat ranked second and third, accounting for over 14% and 11%.

The pipeline of solar open access projects under development and in the pre-construction phase was over 24 GW as of September 2024. More than 80% of pipeline projects were located in Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, and Tamil Nadu.

“Multiple approvals required for land acquisition up to project commissioning have been a challenge, and stakeholders want a single window clearance for approvals,” added Sanjay.

Adani Green was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for over 36% of electricity sold.

Punjab was the leading procurer from G-DAM, contributing to almost 23% of electricity purchased.

The cleared volume of renewable energy certificates traded on the Indian Energy Exchange (IEX) rose over 198% QoQ.

The volume traded in the Green Term Ahead Market (G-TAM) on IEX increased by more than  103% QoQ.

“Transmission and supply chain constraints, along with regulatory barriers, are hindering growth. However, new states are adding to the opportunities, and solar energy continues to get cheaper than conventional power,” Sanjay said.

A detailed analysis of the solar open access market, retail electricity tariffs, PPA prices, and open access charges and costs for fifteen states have been covered in this report.

The Q3 2024 India Solar Open Access Market Report report is 59 pages long and covers vital information and data on the market. For the complete report, visit:
https://www.mercomindia.com/product/q3-2024-mercom-india-solar-open-access-market-report