Rooftop Solar Installations Rise 6.25 Percent To 1.7 GW In 2023: Mercom
Gujarat was the leader in installation, accounting for 27.3 per cent of cumulative solar rooftop installations, followed by Maharashtra and Rajasthan, with 13.3 per cent and 8.1 per cent, respectively
Rooftop solar capacity in India experienced a notable growth of 6.25 per cent, reaching 1.7 gigawatts (GW) in 2023, reports Mercom Capital, a US-based research firm. This marks a significant increase from the 1.6 GW added in 2022. However, the final quarter of 2023 witnessed a slight downturn, with 406 megawatts (MW) added, down 15.9 per cent from the previous quarter’s 483 MW.
As of December 2023, cumulative rooftop solar installations stood at 10.5 GW. Residential installations primarily drove capacity additions in 2023, although growth was modest due to commercial and industrial (C&I) consumers awaiting the stabilisation of module prices to reduce capital investments. The residential segment accounted for over half of the capacity additions, followed by the C&I segments.
CEO of Mercom Capital Group, Raj Prabhu, attributes the surge in demand to declining system costs, rising electricity rates, incentives for residential installations, and favorable returns on investment for the C&I segment. Prabhu anticipates an acceleration in demand in 2024, marking the end of the wait for further price reductions and the beginning of a resurgence in construction activity.
Despite the growth in capacity, rooftop solar tenders saw a decline in 2023, totaling 1.2 GW, down by 45.7 percent year-on-year. Uttar Pradesh New Energy Development Agency played a significant role in driving tender activity, accounting for 44.2 percent of the announced tender capacity.
Furthermore, tenders for rooftop solar systems on government buildings across India constituted nearly 57 percent of the total announced solar tender capacity. Gujarat emerged as the leader in installations, representing 27.3 percent of cumulative solar rooftop installations, followed by Maharashtra and Rajasthan, with 13.3 per cent and 8.1 per cent, respectively.
The top 10 states collectively accounted for 77.3 per cent of cumulative rooftop solar installations as of December 2023. Additionally, the average cost of rooftop solar systems witnessed a decline for the fifth consecutive quarter, indicating further opportunities for growth and adoption in the sector.
