India is looking forward to witness a surge in solar capacity, with industry experts predicting an addition of 16 to 17 gigawatts (GW) by the conclusion of the current financial year. Notably, India experienced the highest increase in solar power capacities last year, marking an impressive three-fold rise from 22.34 GW in March 2018 to 72 GW in October 2023.
Ravi Shekhar, Director of Eninrac Consulting, highlighted that if this growth is averaged annually from March 2018 to March 2023, it will equate to approximately 9 GW. The initial three years from March 2018 to March 2021, witnessed a growth of 19 GW, reflecting an average annual capacity increase slightly exceeding 6.3 GW.
The subsequent period, spanning from March 2021 to March 2022, witnessed a capacity growth of 12.76 GW, and from March 2022 to March 2023, the growth was 13 GW, showing a slight improvement from the previous year. Fiscal years 2022 and 2023 recorded the highest capacity additions for solar power in India, with 12,784 MW and 12,760 MW, respectively.
Experts attribute this robust growth to various factors, including the implementation of utility-scale solar projects, heightened tendering activity, the suspension of ALMM requirements until March 2024, and the time extension granted by MNRE until March 2024 for solar and hybrid projects bid out on or after April 2021 due to the impact of COVID-19.
As reported by ETEnergyworld.com, the imposition of basic customs duty, alleviation of supply chain pressures that impeded growth in FY23, historically low prices of Chinese solar cells and modules, cost optimization prompted by increased grid electricity tariffs, and subsidy initiatives, especially in rooftop solar, implemented by both central and state governments have contributed to this positive trend.
