Karnataka Tops Solar Open Access Capacity Additions in 2024, Followed by Maharashtra and Gujarat: Mercom.

Karnataka has maintained its position as the leading state for solar open access capacity additions in 2024, accounting for nearly 29% of the total 4.8 GW installed during the first nine months of the year, according to a report by Mercom Capital. Maharashtra and Gujarat followed in second and third place, contributing 14% and 11%, respectively. Together, these three states represent 54% of the total solar open access capacity added in 2024.

In the third quarter of 2024, Maharashtra emerged as the top contributor to new solar open access capacity, accounting for nearly 27% of the installations. Tamil Nadu and Uttar Pradesh were also significant contributors, with 24% and 15%, respectively, of the new projects commissioned during the quarter.

Record Growth in 2024

India added a total of 4.8 GW of solar open access capacity in the first nine months of 2024, marking a nearly 69% increase from the 2.8 GW installed during the same period in 2023. This growth represents a new milestone, as the total capacity added surpasses the annual installations of previous years. As of September 2024, the cumulative installed solar open access capacity stood at 17.8 GW.

Slowdown in Q3 2024

However, the third quarter of 2024 saw a slowdown in solar installations, with only 1.1 GW of new capacity added, a decline of over 36% compared to the 1.7 GW added in Q2 2024. Year-over-year growth also showed a 6.5% decline.

The drop in installations during Q3 was attributed to several factors, including delays in project timelines due to limited transmission infrastructure, difficulties in land acquisition, and the higher costs of ALMM-enlisted (Approved List of Models and Manufacturers) Indian modules compared to imported alternatives. Delays in grid connectivity approvals were also a contributing factor.

Strong Future Outlook

Despite these challenges, solar energy continues to be seen as the most affordable alternative to traditional power sources. As of September 2024, India’s solar open access project pipeline stood at 24.1 GW, with more than 80% of these projects concentrated in Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, and Tamil Nadu. This indicates strong growth potential in these key solar energy hubs in the coming years.

Priya Sanjay, Managing Director at Mercom India, stated, “Though infrastructure and regulatory issues pose challenges, solar energy continues to thrive as the most affordable alternative to traditional power sources.”

HBL