Solar Capacity addition in the country declined 58% to 1.7 GW in the Q1 FY2023 period, mainly due to land and transmission-related issues, Mercom India said on Monday. Mercom India is based in Bangalore and is a subsidiary of US based Mercom Capital Group, a leading clean energy consulting firm recognized globally for its clean energy expertise. It helps developing countries like India with clean energy communications and various other aspects.
The country added 4 GW of solar capacity in the year-ago quarter and 1.7 GW solar capacity in Q2 of 2023. (New) installations dropped more than 10% QoQ compared to 1.9 GW in the January-March period, the research firm said in ‘Q2 CY2023 India Solar Market Update’. Capacity additions fall represents almost 58% decline YoY.
Large-scale solar projects accounted for 77% of the capacity added during the quarter, and rooftop solar installations contributed 23%. Over 1.3 GW of large-scale solar capacity was added in the quarter, down 64% y-o-y, and 7% q-o-q. During January-June, new installations were at 3.6 GW, down 53% from 7.6 GW during the same period last year. India’s cumulative installed solar capacity surpassed the 66 GW-mark in June.
“Delays, extensions, and postponements have led to a substantial number of solar projects being deferred to next year, making 2023 a year of setbacks for solar in India,” Raj Prabhu, Chief Executive Officer of Mercom Capital Group, said.
“Consequently, 2024 looks extremely robust. Rapidly declining solar components and project costs will be a catalyst for additional growth,” he said. Following a weak first quarter, capacity additions slowed further in the second. Extensions granted to several large-scale solar projects and those facing delays due to land and transmission issues affected installations in the January-June period, he said.
During the quarter under review, Gujarat led with 41% of large-scale solar installations. Rajasthan and Karnataka were next, with 20% and 14% of quarterly capacity additions, respectively. During January-June, India added 8.4 GW of new power capacity, with solar accounting for over 43%.
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