India Adds 3.2 MW of Open Access Solar in CY 2023, Up 5.7% YoY

March 08, 2024 – In calendar (CY) 2023, India added 3.2 gigawatts (GW) of photo voltaic open entry capability, a rise of 5.7% in comparison with the three GW put in in 2022, a report for annual installations, in accordance with the newly launched report, 2023 This autumn & Annual Mercom India Solar Open Access Market Report.

The extension of the Approved List of Models and Manufacturers (ALMM) order till March 2024 and falling module costs spurred business and industrial (C&I) customers to fee pending initiatives and signal new PPAs. Declining system prices, favorable insurance policies, and the Green Energy Open Access Rules in a number of states fueled photo voltaic installations by means of the open entry market in 2023.

“Open entry photo voltaic is one of the intense spots in India’s photo voltaic market, attracting business enterprises and industrial items to shift in the direction of photo voltaic and different clear vitality sources. The potential value financial savings for companies are laborious to disregard, particularly as photo voltaic prices proceed to lower whereas retail electrical energy costs rise. With a robust pipeline, the outlook could be very promising for this market phase, and we anticipate sturdy development in 2024,” mentioned Raj Prabhu, CEO of Mercom Capital Group.

Cumulative put in photo voltaic capability in the open entry phase stood at 12.2 GW as of December 2023.

Karnataka remained the highest state for cumulative installations, accounting for 33.1% of the nation’s installations, adopted by Maharashtra (13.5%) and Tamil Nadu (11.4%).

The high 5 states contributed 72.2% to the nation’s cumulative open entry photo voltaic installations as of December 2023.

India had 13.9 GW of initiatives underneath growth and in the pre-construction section on the finish of This autumn 2023.

India added 831.2 MW of open entry photo voltaic in This autumn 2023, a 22.8% quarter-over-quarter (QoQ) drop, however up 6.2% year-over-year (YoY) in comparison with 782.5 MW in This autumn 2022.

“Other than the bigger conglomerates and worldwide manufacturers with presence in India, the home industries are additionally critically contemplating inexperienced vitality open entry. Responsible metal, inexperienced cement, and sustainability initiatives throughout sectors have been including to the demand for inexperienced energy in bigger scale,” commented Priya Sanjay, Managing Director at Mercom India.

Karnataka led all states and accounted for 27.9% of open entry photo voltaic capability in 2023. Gujarat and Maharashtra adopted with 16.4% and 16.2% share of annual installations, respectively. The high 5 states accounted for 84.1% of the overall installations in the yr.

While decrease PPA costs resulted in greater capability additions YoY, installations dropped QoQ as a number of builders accomplished their initiatives in Q3 and signed new PPAs in This autumn, that are anticipated to extend capability additions in the upcoming quarters.

In This autumn 2023, Tamil Nadu led all states, accounting for twenty-four.8% of whole open entry photo voltaic installations. Rajasthan ranked second and Karnataka third with 23.3% and 15.8% share of whole capability additions in This autumn, respectively.

The high 5 states accounted for 83.6% of photo voltaic open entry installations in This autumn 2023.

Karnataka led the Green Day Ahead Market (G-DAM) in energy bought by means of the trade, with 82.5 MUs accounting for 16.2% of the market.

Damodar Valley Corporation turned the main vitality procurer from the G-DAM with 93.6 MU, adopted by Maharashtra with 65.6 MU, representing 18.4% and 12.9% of the traded quantity, respectively.

On the Indian Energy Exchange (IEX), 2,17,023 Renewable Energy Certificates (RECs) had been traded in October, 7,54,970 in November, and 1,052,230 in December.

According to the report, the quantity traded in the Green Term Ahead Market (G-TAM) on IEX fell 39% QoQ.

An in depth evaluation of the photo voltaic open entry market, retail electrical energy tariffs, and open entry expenses and prices for seventeen states has been coated in the report.

Key Highlights from Mercom India Research’s This autumn 2023 India Solar Open Access Market Report

India added over 3.2 GW open entry photo voltaic in CY 2023, up 5.7% from the three GW put in in 2022

Karnataka led all states, contributing 27.9% of new open entry photo voltaic capability in 2023

India added 831.2 MW of open entry photo voltaic in This autumn 2023, a 22.8% QoQ drop from 1,077 MW put in in Q3 2023

The whole put in photo voltaic capability in the open entry phase stood at 12.2 GW as of December 2023

13.9 GW of open entry photo voltaic initiatives had been in the event pipeline on the finish of CY 2023