Tamil Nadu added record solar open access capacity in the first nine months (9M) of the calendar year (CY) 2024, surpassing the annual capacity additions of the previous years, according to Mercom’s Q3 2024 India Solar Open Access Market Report.

India added 4.8 GW of solar open access capacity in 9M 2024, up almost 69% from 2.8 GW in 9M 2023. Tamil Nadu ranked fourth among states during this period, accounting for nearly 12% of the installations in the country. The state’s capacity additions increased by over 101% compared to 9M 2023.

In the third quarter (Q3) of 2024, solar open access installations in India totaled 1.1 GW, a 36% drop quarter-over-quarter (QoQ) and over 6% decline year-over-year (YoY).

The state ranked second in the country for capacity additions during Q3, comprising nearly 24% of the quarter’s installations. Tamil Nadu’s capacity addition rose over 44% YoY and approximately 49% QoQ. The QoQ growth was the highest in the country.

As of September 2024, India’s cumulative installed solar open access capacity was 17.8 GW, with Tamil Nadu ranking fourth in the country, accounting for over 11% of the country’s installations. The state’s cumulative installed solar open access capacity increased by a compounded annual growth rate of almost 39% between 2020 and 2023, with the YoY growth averaging over 55% during this period. Additionally, Tamil Nadu’s cumulative installations grew by over 40% between CY 2023 and 9M 2024.

Policy Support

The state’s structured regulatory framework, Tamil Nadu Generation and Distribution Corporation‘s streamlined approval process for captive and group captive projects, and a sizeable industrial base have been the key demand drivers for solar open access.

The electricity tariffs applicable to Tamil Nadu’s commercial and industrial (C&I) consumers are among the highest in the country. In the current financial year (FY) 2025, the state’s regulatory commission raised the tariffs by more than 5%. The increased tariffs continue to support significant savings for industrial consumers under the third-party sale model despite the increase in wheeling charges, transmission charges, and cross-subsidy surcharge for C&I consumers in FY25.

According to Mercom, the state has a significant pipeline of open-access solar projects, with standalone solar projects contributing the most. These projects will likely allow considerable capacity additions in the upcoming quarters. Wind-solar hybrid projects accounted for over 23% of the state’s development pipeline.

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 Q3 2024 India Solar Open Access Market Report is 59 pages long and covers state-wise open access charges, electricity tariffs, power purchase agreement tariffs, installed and pipeline project capacities, and policy updates, along with other critical information and data on the market.