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India’s Open Access Solar Installations Double in Early 2024

1 month ago
India’s Open Access Solar Installations

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Open access solar installations in India experienced a remarkable increase in the first quarter of 2024, doubling to 1.8 gigawatts (GW) from the previous quarter, according to a report by US-based Mercom Capital.

From January to March 2024, India added over 1.8 GW of solar open access capacity, a substantial rise from the 909.3 megawatts (MW) recorded in the last quarter of 2023. 

The ‘Mercom India Solar Open Access Market’ report notes that this addition raised the cumulative installed capacity to 14.3 GW by the end of March 2024.


Lower Costs and Policy Incentives Drive Growth

The growth in solar open access has been significantly influenced by decreased Chinese module prices and the suspension of the Approved List of Models and Manufacturers (ALMM) order for projects commissioned through March 2024.

Additionally, lower power purchase agreement (PPA) prices, resulting from reduced project costs, have made solar open access more attractive to consumers.


Increasing Demand for Green Energy

Demand for solar open access is on the rise, driven by the financial savings it offers and corporate initiatives aimed at incorporating renewable energy into their power mix.

“If not for the regulatory restrictions, green energy open access could be the driving force that helps India meet its non-fossil fuel targets,” said Priya Sanjay, Managing Director at Mercom India.


Regional Leaders in Capacity Additions

In the first quarter of 2024, Rajasthan led the country in solar open access capacity additions, accounting for nearly 28% of the total.

Andhra Pradesh and Maharashtra followed, contributing 21% and 12%, respectively. This regional leadership highlights the growing adoption and potential of solar energy across different states.


Future Project Pipeline

The pipeline of solar open access projects in development and pre-construction stages was over 18 GW by March 2024. Nearly 74% of these projects are concentrated in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.

This robust pipeline underscores the strong future growth potential of solar open access in India.