India records highest rooftop solar growth till September 2024: Report
Source：EQ
In Short : India is expected to set a record by adding 4 GW of rooftop solar capacity in fiscal year 2024, driven by a surge in installations during the first months of the fiscal year. By July 2023, almost 2 GW had been installed, continuing the rapid growth seen in previous years. The country’s rooftop solar market is buoyed by falling solar module costs and regulatory support, though challenges remain, particularly around net metering restrictions and the need for clearer policies. The commercial, industrial, and MSME sectors are anticipated to play a key role in this growth.
In Detail : Rooftop solar installations in the first nine months of 2024 surpassed annual installations of all previous years, according to Mercom India’s newly released Q3 2024 India Rooftop Solar Market Report.
Gujarat led the country’s rooftop solar capacity additions, accounting for almost 42% of the quarter’s installations. Maharashtra and Uttar Pradesh ranked second and third, accounting for 18% and 9% of capacity installed during the quarter.
Installations rose nearly 45% year-over-year (YoY) compared to the 1.3 GW installed in first nine months of 2023, it said.
In the third quarter (Q3) of 2024, a record 791.1 MW of rooftop solar capacity was installed, marking the highest quarterly additions to date. This represents over 8% increase quarter-over-quarter (QoQ) and an impressive 84% year-over-year (YoY) growth.
Installations in Q3 and 9M 2024 were primarily driven by the PM — Surya Ghar: Muft Bijli Yojana initiative. The program significantly boosted capacity additions in the residential segment, contributing nearly 85% of installations during the quarter.
The industrial segment accounted for 12% of the quarter’s installations. Commercial and government segments accounted for over 2% and almost 1% of capacity additions, respectively, in Q3 2024.
Rooftop solar capacity additions under the capital expenditure (CAPEX) model accounted for almost 89% of the quarter’s installations.
“Thanks to the PM – Surya Ghar initiative, the rooftop solar market has seen a remarkable turnaround. The residential sector is now at the forefront of this growth, outpacing the commercial and industrial segments for the first time. To sustain this unprecedented growth, addressing supply chain challenges remains critical,” said Raj Prabhu, CEO of Mercom Capital Group.