India added 1.9 GW of solar capacity in the first quarter (Q1) of calendar year (CY) 2023, 30% less than 2.7 GW installed in Q4 2022, according to the newly released Q1 2023 India Solar Market Update by Mercom India Research.
The Q1 2023 installation included 76% large-scale solar (1.4 GW), with rooftop solar making up the balance 26%.
India’s cumulative installed solar capacity now stands at 64.5 GW.
As of March 31, 2023, the country’s utility-scale project development pipeline stood at 58 GW, with an additional 58 GW of projects tendered awaiting auction.
India installed a record 13 GW of solar capacity in 2022. Mercom expects capacity addition to be lower in 2023 as commissioning deadlines for several projects have been moved to next year. Besides projects stuck in the habitat of the Great Indian Bustard, an increasing number of projects are facing delays due to land and transmission issues.
“The market is re-calibrating following the ALMM decision by the government. Project extensions, GIB, and infrastructure issues point to a softer year than predicted,” said Raj Prabhu, CEO of Mercom Capital Group.
“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 Q1 2023, Rajasthan and Karnataka led solar capacity addition, accounting for 42% and 21% of the overall 1.9 GW installations, respectively. Gujarat installed the third largest capacity with a 19% share.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.