India’s Solar Open Access Soars: A Record 1.8 GW Surge in Q1 2024
India’s renewable energy sector has achieved a significant milestone in the first quarter of 2024, with solar open access installations reaching an unprecedented 1.8 gigawatts (GW). This remarkable growth underscores the nation’s commitment to sustainable energy solutions and reflects the dynamic shifts in policy and market dynamics.
Unpacking the Surge: Factors Driving the Growth
Several key factors have contributed to this substantial increase in solar open access capacity:
- Decline in Module Prices: A global surplus in solar module production, particularly from China, led to a significant drop in prices. This price reduction made solar projects more economically viable for developers and consumers alike.
- Regulatory Relief: The temporary suspension of the Approved List of Models and Manufacturers (ALMM) order for projects commissioned until March 2024 allowed developers to source modules more flexibly, accelerating project timelines
- Cost-Effective Power Purchase Agreements (PPAs): Lower project costs translated into more affordable PPAs, making solar energy an attractive option for businesses aiming to reduce operational expenses and carbon footprints.
- Corporate Sustainability Goals: An increasing number of corporations are setting ambitious sustainability targets, driving demand for renewable energy sources like solar open access to meet their environmental commitments.
State-Wise Contributions: Leaders in Solar Open Access
The growth in solar open access installations was not uniform across India. Certain states emerged as frontrunners:
- Rajasthan: Leading the charge, Rajasthan accounted for approximately 28% of the new installations, leveraging its vast solar potential and supportive policies.
- Andhra Pradesh: With 21% of the capacity additions, Andhra Pradesh demonstrated significant progress in expanding its renewable energy infrastructure.
- Maharashtra: Contributing nearly 12%, Maharashtra’s industrial growth and energy demands have propelled its investment in solar open access projects.
As of March 2024, the cumulative installed solar open access capacity in India stood at 14.3 GW. Karnataka maintained its position as the state with the highest cumulative installations, contributing nearly 30% to the national total. Maharashtra and Tamil Nadu followed, with 13% and 11% respectively.
Future Outlook: A Robust Pipeline Ahead
Looking forward, the solar open access sector shows no signs of slowing down. As of March 2024, over 18 GW of projects were in various stages of development or pre-construction. Notably, approximately 74% of these projects are concentrated in five states: Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh. This concentration indicates a strategic focus on regions with favorable policies, infrastructure, and solar irradiance.
India’s record-breaking addition of 1.8 GW in solar open access capacity during Q1 2024 marks a significant step towards a sustainable energy future. The synergy of declining costs, regulatory support, and corporate commitment to sustainability has created a conducive environment for renewable energy growth. As the country continues to invest in and prioritize clean energy, solar open access is poised to play a pivotal role in meeting India’s ambitious renewable energy targets.
