In the first half of 2024, India added 14.9 GW of new solar installations, a 282% year-on-year increase, surpassing previous records. The first quarter contributed 9.9 GW, while the second quarter added 5 GW. Rooftop solar installations reached 1.1 GW, up 26% from 873 MW in the same period of 2023.
By August 2024, India’s total solar capacity reached 89.43 GW, accounting for over 58.58% of its renewable energy capacity (excluding large hydro). In August alone, India added more than 2.224 GW of solar power. India’s total renewable energy capacity now exceeds 152.65 GW, with solar and wind contributing 136.624 GW (89.5%). Ground-mounted solar installations account for 69.19 GW, while hybrid solar units add 2.59 GW. Off-grid installations, including solar lamps and microgrids in rural areas, total 3.76 GW.
Geographic Conditions
India’s mostly tropical climate provides ideal solar conditions, with 250 to 300 sunny days annually and average solar radiation of 4.0-7.0 kWh/m², especially high in Rajasthan, Gujarat, and Madhya Pradesh. While dry areas like Rajasthan are optimal for solar power, tropical regions like Kerala and West Bengal face monsoon impacts affecting efficiency.
Solar Imports
In the first half of 2024, China’s solar exports to Asian countries totaled $8.74 billion, with a 13.2% decrease year-on-year. However, solar module exports increased by 26.8% to $6.28 billion, with a volume of around 56 GW, a 140% increase. China exported $1.19 billion worth of solar modules to India, up 141.5% year-on-year, driven by India’s renewable energy needs and policies. The PM Surya Ghar initiative boosted rooftop solar installations, increasing demand for string inverters, mostly imported from China.
Outlook for Solar Industry
India has frequently used trade policies to limit Chinese solar imports to support domestic industry. The Ministry of New and Renewable Energy (MNRE) is now seeking feedback on the solar cell ALMM draft guidelines, aiming to implement them by April 2026. This policy, suspended in the 2023-24 fiscal year to ensure adequate component supply for domestic projects, may result in non-tariff barriers to protect local industry.
Despite efforts to bolster domestic capacity, Indian-made solar components lag in quality and are more expensive than Chinese imports. With grid connectivity and infrastructure issues causing project delays, developers continue to rely on Chinese imports. In the first quarter of 2024, the anticipation of the ALMM policy’s reinstatement led developers to import components in advance, resulting in a significant surge in solar imports. However, the second quarter saw a 49% decrease in new solar installations compared to the first quarter, partly due to project delays and infrastructure challenges.
Dependence on China
India aims to achieve self-reliance in solar manufacturing but remains heavily dependent on China. In the 2023-24 fiscal year, during the ALMM suspension, India imported large volumes of solar products. Chinese companies led the Indian market, with JinkoSolar, Longi Solar, and JA Solar occupying the top spots, supplying 64.5% of India’s solar solar panel needs. Domestic manufacturers met only 35.5% of the demand, indicating India’s continued reliance on Chinese imports.
