In Short : India is on track to achieve a record-high solar capacity addition this year. With increasing investments and government support, the country is making significant strides in expanding its solar energy infrastructure. This achievement is a testament to India’s commitment to renewable energy and its efforts to combat climate change. Kudos to India for its remarkable progress in the solar sector!
In Detail : India is expected to add 16 gigawatt (GW) to 17 GW solar capacity by the end of this financial year and has ‘undoubtedly’ seen highest capacities being added to its solar power installed base last year, said industry experts.
“The solar capacity additions have been at 5.2 GW in seven months of FY24. However, with increase in tendering activities in the past 18-24 months – about 17 GW in FY22 and 31 GW in FY23 – drop in module prices and ease of supply chain pressures, FY24 is expected to add 16-17 GW,” said Pranav Master, senior practice director – consulting, Crisil Market Intelligence and Analytics.
He said that this could be the highest ever growth in solar capacity addition for India during a financial year. “Previously, in FY22 and FY23, solar capacity additions in India stood at 13.9 GW and 12.8 GW, respectively,” added Master
According to Ravi Shekhar, director, Eninrac Consulting, India’s solar power has seen more than a three-fold jump from March 2018 to October 2023 wherein capacity grew from 22.34 GW to 72 GW. This growth if averaged out on an annual basis would be about 9 GW from March 2018 to March 2023. He said that in the first three of the period of March 2018 to March 2021 saw a growth of 19 GW meaning an average capacity growth of just above 6.3 GW on annual basis.
Ease of supply chain pressure that hampered additions in FY23, Chinese solar cells and module prices reaching a historic low, cost optimisation due to increased grid electricity tariffs, and subsidy initiatives specially in rooftop solar implemented by both central and state governments.
