In the first half (H1) of calendar year (CY) 2024, India added 3.6 gigawatts (GW) of solar open access capacity, a 153% increase compared to the 1.4 GW installed in H1 2023, according to the Q2 2024 Mercom India Solar Open Access Market Report. The capacity added in the first half of 2024 surpassed the total annual installations of all prior years.

 

The availability of low-cost solar module inventory that were procured before the ALMM exemption expired drove capacity additions in H1 2024. Several developers deferred capacity additions in Q2 2024 as they waited for exemptions from the reimposed ALMM order, leading to a drop in installations and commissioning delays.

 

In the second quarter (Q2) of 2024, India added nearly 1.8 GW of solar open access capacity, down 2.5% from over 1.8 GW in Q1 2024. Installations in Q2 2024 were up 152% year-over-year (YoY) compared to 712.8 megawatts (MW) in Q2 2023.

 

"The demand for open access solar from industries and commercial units has been consistently increasing. Challenges in transmission infrastructure availability, supply chain issues due to ALMM, and lack of uniformity in state regulations are holding back the open access market from exponential growth. Developers are increasing the share of wind-solar hybrid power projects to utilize the existing evacuation infrastructure, and more states are now issuing the green energy open access regulations," commented Priya Sanjay, Managing Director at Mercom India.

 

 

In Q2 2024, Karnataka led solar open access capacity additions, accounting for over 40% of installations. The top five states accounted for over 85% of installations in Q2 2024.

 

Cumulative installed solar open access capacity stood at 16.3 GW as of June 2024.

Karnataka remained the top state for cumulative installations, accounting for over 30% of solar open access capacity at the end of H1 2024. Maharashtra and Tamil Nadu ranked second and third, accounting for almost 14% and 11% of cumulative installations in H1 2024.

 

The pipeline of solar open access projects under development and in the pre-construction phase was almost 23 GW as of June 2024. More than 81% of pipeline projects were located in Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, and Tamil Nadu.

 

Adani Green was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for more than 29% of electricity sold.

 

Arcelor Mittal Nippon Steel was the leading procurer from G-DAM, contributing to almost 20% of electricity purchased.

 

The cleared volume of renewable energy certificates (RECs) traded on the Indian Energy Exchange (IEX) fell 35% quarter-over-quarter (QoQ).

 

The volume traded in the Green Term Ahead Market (G-TAM) on IEX rose nearly 151% QoQ.

 

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.

 

• In H1 2024, India added 3.6 GW of solar open access capacity, up over 153% YoY

• In Q2 2024, 1.8 GW of solar open access was added, a 2.5% QoQ decrease, but an increase of 152% YoY

• Karnataka was the leading state, accounting for more than 40% of solar capacity additions in Q2 2024

• The top five states accounted for more than 85% of solar installations in Q2 2024

• As of June 2024, the cumulative installed solar open access capacity was 16.3 GW

• The top five states contributed over 72% of cumulative solar open access installations as of June 2024

• As of June 2024, the pipeline of solar open access projects was almost 23 GW