India’s solar capacity down 48% in Q1

India installed 1.9 GW of solar capacity in the first quarter of calendar year 2023, a 48% decrease year-over-year (YoY) compared to the 3.6 GW added in Q1 2022.

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The solar capacity addition in India fell by 48% YoY to 1.9 GW in the first quarter (Q1) of 2023, according to Mercom India Research. The country added 3.6 gigawatts (GW) of solar capacity during the same period in 2022.

On a quarter-on-quarter (QoQ) basis, the installation fell 30% lower compared to the 2.7 GW solar capacity installed in the October-December period in 2022.

Out of the total 1.9 GW solar capacity added in Q1 2023, large-scale solar projects constituted 74% of the installations, while rooftop solar accounted for the remaining 26%.

As of March 2023, India’s cumulative solar capacity reached 64.5 GW. The utility-scale project development pipeline stood at 58 GW, while an additional 58 GW of projects were tendered and awaiting auction.

Mercom India said that India’s solar industry passed an important milestone in 2022, setting a new record with 13 GW of capacity added. However, in 2023 the additions are expected to be lower as commissioning deadlines for several projects have been moved to next year. Besides, a number of projects are facing delays due to land and transmission issues.

Raj Prabhu, CEO of Mercom Capital Group said, “On a positive note, module prices are trending in the right direction, and project costs declined for the first time after rising for ten consecutive quarters, bringing much-needed relief to the solar industry.”

In response to industry concerns regarding raw material availability and supply chain issues, the government has decided to extend the ALMM (Approved List of Models and Manufacturers) by one year, until March 2024.