Solar capacity additions in India are expected to reach 17 GW this year

Solar capacity additions in India are expected to reach 17 GW this year
India is on track to add 16-17 GW of solar capacity this financial year, having seen record-breaking growth in solar installations last year. said industry experts. "The solar capacity additions have been at 5.2 GW in seven months of FY24. However, with an increase in tendering activities in the past 18-24 months about 17 GW in FY22 and 31 GW in FY23 a 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. If averaged out annually, this growth would be about 9 GW from March 2018 to March 2023.
He said that 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 an annual basis. "This, however, takes a quantum leap in the next couple of years wherein the cumulative solar installed capacity witnessed a growth of 25 GW", Shekhar added. The capacity growth from March 2021 to March 2022 was 12.76 GW and from March 2022 to March 2023 was 13 GW, which is slightly better than the last year.
"From April 2023 to October 2023 the quantum solar capacities added stands at 5,238 MW and if the capacities are added at the same rate for the coming half of FY24 it is anticipated the overall 10-12 GW shall again be added on March 23 values of installed capacity", said Shekhar. To date, FY22 and FY23 registered the best capacity addition in growth rate for solar power in India – FY23 saw 12,784 MW while FY22 witnessed 12,760 MW of capacity addition.
There were several factors contributing to the growth in solar and hybrid project bidding, including the extension of time provided by MNRE until March 2024 for projects bid on or after April 2021 due to COVID-19. Other factors include the imposition of basic customs duty, the easing of supply chain pressures that hindered additions in FY23, Chinese solar cell and module prices reaching a historic low, cost optimization due to increased grid electricity tariffs, and subsidy initiatives implemented by both central and state governments, especially in rooftop solar.