In 2022, India experienced its highest-ever annual solar installation rate.
Between January and December of 2022, India added 13 GW of solar capacity, with large-scale projects making up 87% of the increase. By December 31, 2022, India has installed 63 GW of solar power. With another 51 GW of projects tendered and awaiting auction at the end of 2022, there were 58 GW of large-scale solar projects in the pipeline. The growth outlook for 2023, according to a report by Mercom India, is still uncertain due to several factors, including the ongoing litigation regarding projects that have become stranded in the Great Indian Bustard region, the announcement of the approved lists of models and manufacturers (ALMM), and anticipated project extensions as a result of MNRE's directives to Solar Energy Corp. of India, the Indian Renewable Energy Development Agency, NHPC, and NTPC. The report notes that the average cost of projects will increase throughout CY 2022 as a result of rising module costs and supply shortages. An record 10 quarters of project cost increases in a row occurred in Q4 2022, when average large-scale system costs grew by 7.3% YoY. Solar tenders grew 23% year over year in 2022, but auctions decreased 29% from 2021 to 2022. Lower auction activity in 2022 was caused by the implementation of basic customs duty (BCD), a lack of modules enrolled under the ALMM, and several announcements and modifications to policy.
Key Highlights from the report
- India added 13 GW of solar in CY 2022, a 27% increase compared to GW installed in CY 2021
- Installations in 2022 were the highest ever recorded in India
- In 04 2022, India added 2.6 GW of solar
- The cumulative solar capacity installed in India was approximately 63 GW at the end of 04 2022
- India's large-scale solar project pipeline stood at 58 GW, with another 51 GW of projects tendered and pending auction
- Rajasthan, Karnataka, and Gujarat were the top three states for cumulative large-scale solar installations
- Solar accounted for 82% of new power capacity additions in 2022, the highest recorded in any year
- Renewable energy sources accounted for 96% of new power capacity added in 2022