India’s solar industry made a historic achievement in 2024. India installed 25.2 gigawatts (GW) of solar capacity, nearly twice the 8.3 GW installed in 2023, based on the latest report from Mercom Capital. It is a giant’s leap towards renewable energy. Here’s what drove this growth and what lies ahead.
Record-Breaking Additions
Solar capacity soared in 2024. Developers rushed to finish delayed projects, pushing installations to new heights. “Commissioning of a significant capacity of previously delayed projects drove capacity additions in 2024,” the Mercom India Solar Market Update report noted. Large-scale solar projects, including open access models, made up over 87% of the total. Rooftop solar added nearly 13%. Overall, solar accounted for almost 73% of India’s 34.7 GW of new power capacity in 2024.
Top States Leading the Charge
Rajasthan, Gujarat, and Maharashtra dominated large-scale solar installations. They accounted for around 32%, 27%, and 8% of the capacity additions, respectively. Open access projects, whereby corporations or entities purchase solar energy in large volumes, accounted for more than 31% of the large-scale solar growth. These states’ friendly weather and relaxed policies fueled the boom.
Challenges Hindering Progress
Not everything went according to plan everywhere. Transmission problems and supply chain issues prevented even more progress. Increased costs also raised a few eyebrows. “India’s solar sector saw record-breaking installations in 2024, but the numbers could have been significantly higher if not for transmission issues and supply chain delays,” said Raj Prabhu, CEO of Mercom Capital Group. He added, “Rising costs due to import duties and expensive domestic modules remain a concern for the industry.”
Looking Toward 2030
India dreams big. In order to reach its 2030 renewable ambitions, the nation requires more than 35 GW of solar additions every year. That’s an ambitious request. Clear, predictable policies are what it will require. The sector requires support for local manufacturing along with ensuring that projects get executed without hiccups. Tipping these variables will be the key.
Key Highlights
- Solar Capacity: 25.2 GW installed in 2024 and 8.3 GW installed in 2023.
- Total installed power capacity: 34.7 GW of new power added, solar at73%.
- Leading States: Rajasthan (32%), Gujarat (27%), Maharashtra (8%).
- Challenges: Transmission issues, supply chain delays, rising costs from import duties, and pricey domestic modules.
India’s solar boom reflects its push for clean energy. The 2024 numbers show progress, but challenges remain. Transmission bottlenecks and supply chain snags need fixing. Costs from import duties and local module prices could slow things down if not addressed. Still, the growth is a bright spot. With the right policies, India can keep climbing toward its 2030 targets.
This record year sets the stage for the future. Developers, policymakers, and businesses are watching closely. India’s solar journey is far from over, but 2024 proved it’s moving in the right direction.
