India Faces 47 Percent Drop in Solar Installations

Delays in project execution, extensions granted to several large-scale solar and hybrid power projects, and challenges related to land and transmission contributed significantly to the decline.

November 28, 2023. By Abha Rustagi

India has witnessed a significant 47 percent decline in solar installations, reporting only 5.6 GW during the first nine months of 2023, according to a research. The July-September quarter alone saw a 34 percent decrease, installing only 1.9 GW compared to the 2.8 GW installed in the same period last year.

The research report highlighted that the utility-scale installations experienced a more pronounced setback, plummeting over 54 percent year-over-year to 4.2 GW.

Delays in project execution, extensions granted to several large-scale solar and hybrid power projects, and challenges related to land and transmission contributed significantly to the decline.

The oversupply of modules in China played a role in driving down the average selling prices of solar modules, marking a continuous decrease over the past four quarters.

Challenges in securing transmission connectivity were exacerbated by changes in project timelines. In Q3, project developers faced uncertainty regarding application procedures under amended regulations for long-term access to transmission networks.

The report noted that the Central Electricity Regulatory Commission (CERC) issued clarifications towards the end of the quarter, providing some relief and is expected to ease the process in the coming quarters. Additionally, projects located in the habitat of the Great Indian Bustard (GIB) are awaiting a Supreme Court order to receive transmission connectivity.

India's cumulative installed solar capacity, including rooftop installations, surpassed 69 GW as of September 2023. Despite the challenges, the country's utility-scale solar development pipeline remains substantial, standing at nearly 77 GW. Over 68 GW of projects were tendered but pending auction at the end of Q3 2023.

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Central Electricity Regulatory Commission