December 05, 2024 – India added a record 1.9 gigawatts (GW) of rooftop solar capacity in the first nine months (9M) of calendar year (CY) 2024. Installations in the first nine months surpassed annual installations of all previous years. Installations rose nearly 45% year-over-year (YoY) compared to the 1.3 GW installed in 9M 2023, according to Mercom India’s newly released Q3 2024 India Rooftop Solar Market Report.
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 an 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 (PM – Surya Ghar). 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.
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.
In 9M 2024, Gujarat led rooftop solar installations, accounting for over 38%. Maharashtra and Kerala followed, accounting for almost 16% and 11% respectively.
As of September 2024, India had a cumulative installed rooftop solar capacity of 12.4 GW.
Kerala registered the highest compounded quarterly growth rate of more than 8% between Q3 2023 and Q3 2024.
In Q3 2024, 371.1 MW of rooftop solar tenders were issued, down more than 30% from 533.6 MW in Q2 2024 and up over 211% compared to the 119.3 MW announced in Q3 2023.
The average cost of rooftop solar systems rose almost 2% QoQ and was down more than 3% YoY.
A comprehensive analysis of net metering policies across all Indian states and Union Territories is also included in the report.
Key Highlights from Mercom’s Q3 2024 India Rooftop Solar Market Report
- India added 1.9 GW of rooftop solar in 9M 2024, up 45% YoY
- In Q3 2024, 791.1 MW of rooftop solar capacity was added, up 8% QoQ and up 84% YoY
- Residential consumers contributed nearly 85% of installations in Q3 2024
- Cumulative rooftop solar installations reached 12.4 GW as of September 2024
- In Q3 2024, 371.1 MW of rooftop solar tenders were issued, down 30% QoQ and up 211% YoY
- The average cost of rooftop solar systems rose 2% QoQ but fell 3% YoY