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 top five states accounted for 74% of the total installations.

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

#1 Karnataka took the lead, accounting for 23% of solar open access additions in India in 9M 2024, a 42% YoY increase.

The state’s regulatory commission significantly lowered cross subsidy surcharge and transmission and wheeling charges for the financial year 2024-25 (FY25), even though there was a 17.1% increase in an additional surcharge. For the third-party solar open access model to be feasible in the state, the open access charges need to be far lower. The attractiveness of captive and group captive projects will likely increase further due to the drop in transmission and wheeling charges and waiver of additional and cross subsidy surcharges. Favorable policies and timely approvals from DISCOMs continued to drive solar open access installations during the year.

#2 Maharashtra, with 15% of total solar open access additions in 9M 2024, was second. There was a 71.5% YoY increase in capacity additions in the state.

High electricity tariffs levied on the state’s C&I segment continued to drive capacity additions as consumers increased their demand for solar open access power to lower operating costs and meet their renewable energy and environmental goals.

#3 Rajasthan took the third position, accounting for for 14% of solar open access additions in 9M 2024. The state witnessed a 989% YoY increase in capacity additions.

The capacity additions were driven by commissioning several pending projects in the first quarter of the year to avoid an expected increase in project costs after the reimposition of the Approved List of Models and Manufacturers from April 1, 2024, and the clarification of minimum equity and consumption norms for the state’s captive and group captive projects.

#4 Tamil Nadu stood fourth, with 12% of solar open access additions in 9M 2024. The state saw a 101.2% YoY increase in capacity additions.

Tamil Nadu’s structured regulatory framework, Tamil Nadu Generation and Distribution Corporation’s streamlined approval process for captive and group captive projects, and a big industrial base drove capacity additions under  solar open access.

#5 Gujarat took the fifth position, accounting for 10% of solar open access additions in 9M 2024. The state witnessed a 48.4% YoY increase in capacity additions.

For FY25, the state’s regulatory commission lowered the wheeling charges and cross-subsidy surcharge. However, a proportionate increase in additional surcharges and transmission charges eliminated the expected benefits for open access consumers.