In 2022, India installed 11.4 GW of utility solar capacity and 1.9 GW of rooftop solar, for a total of 13.3 GW.
ICRA predicts an increase in renewable energy capacity in India, expected to be 20 GW in 2024 compared to 15 GW in 2023. This includes 16 GW of solar, 2 GW of wind and an additional 2 GW of hybrid projects.
According to ICRA, the extension granted by the Ministry of Power to solar and hybrid projects till March 2024, the relaxation of the ALMM requirement and the recent moderation in solar cell and module prices will increase capacity this financial year.
Vikram V, ICRA’s Vice President and Sector Head – Corporate Ratings, said the slowdown in bidding activity in the solar power segment in 2023 was due to increased module prices, ALMM challenges and duties on imported modules. Although there is visibility for increasing the capacity of renewable energy in the near future, significant bidding activity is needed to achieve the goals of the renewable energy procurement obligation (RPO).
Despite implementation risks and input cost pressures, ICRA maintains a “stable” outlook for renewable energy due to strong policy support, favorable demand outlook and competitive tariffs. The industry also benefits from late fees and regular invoice payments according to the late payment supplement system.
According to JMK Research, India is expected to install 16.8 GW of new solar capacity in 2023, comprising about 14 GW of utility-scale projects and 2.8 GW of rooftop projects. In 2022, India installed 11.4 GW of utility solar capacity and 1.9 GW of rooftop solar, bringing the total to 13.3 GW. As of 12/31/2022, the cumulative utilization scale of solar energy capacity in India was approximately 53.6 GW, with 44.6 GW in the pipeline.