Jan-Mar 2023 solar capacity installations down 48% to 1.9 GW: Mercom India 2023

According to Mercom India Research, solar capacity addition in India decreased by 48 percent year-over-year to 1.9 GW in the January-March period of 2023.

In the same period in 2022, the country added 3.6 gigawatts (GW) of solar capacity, according to the latest report from the research firm.

”India added 1.9 GW of solar capacity in the first quarter of calendar year 2023, a decrease of 48 percent from the 3.6 GW added in Q1 2022,” a report titled ‘Q1 2023 India Solar Market Update’ stated.

Quarter-over-quarter (q-o-q), the installations were 30% lower than the 2.7 GW of solar capacity installed in October-December or the fourth quarter of 2022.

74% of 1,9 GW of solar installations were large-scale, while 26% were rooftops.

Currently, India’s cumulative installed solar capacity lies at 64.5 gigawatts. The country’s utility-scale project development pipeline stood at 58 GW as of March 2023, with an additional 58 GW of tendered projects awaiting auction.

In 2022, India’s solar industry reached a significant milestone, establishing a new benchmark with 13 GW of added capacity. The commissioning deadlines for a number of projects have been pushed back to 2023, which will likely result in fewer additions in 2023.

In addition, a number of projects are experiencing delays because of land and transmission issues, according to Mercom India.

The government’s ALMM decision rebalanced the market.

The market is recalibrating in response to the government’s ALMM decision. Project extensions, GIB, and infrastructure issues point to a weaker year than anticipated.

”On a positive note, module prices are trending in the right direction, and project costs declined for the first time after rising for ten consecutive quarters, bringing the solar industry much-needed relief,” said Raj Prabhu, CEO of Mercom Capital Group.

The government previously prolonged the ALMM by one year, until March 2024, in response to industry concerns regarding the availability of basic materials and the supply chain.

The Approved List of Models and Manufacturers (ALMM) was implemented to encourage domestic production.

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