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Following two years of robust growth, India’s solar capacity additions sharply declined by 44% in 2023, the lowest since 2016.
What triggered this slowdown, and will this trend persist? Let’s explore.

Solar Capacity Addition in 2023

Decline in Capacity: India added 7.5 gigawatts (GW) of solar power capacity in 2023, a significant drop from the previous year’s record of 13.4 GW. This marked the lowest levels since 2016, except for the pandemic-affected 2020.
Large-scale Projects Hit Hard: Capacity additions in large solar power projects declined by over 50% to 5.8 GW from 11.7 GW in 2022. However, rooftop solar power capacity continued to grow by 1.7 GW, consistent with 2022 levels.
Cumulative Capacity: India’s cumulative solar power capacity reached 72 GW by the end of 2023, with large-scale projects contributing over 60 GW.

Regulatory Hurdles: Solar power producers faced regulatory hurdles, including stricter grid connectivity rules and a Supreme Court directive in 2021 mandating the relocation of overhead power cables to protect the Great Indian Bustard habitats.
Challenges in Compliance: Compliance with amended grid code provisions became more demanding, leading to delays in project execution. Land acquisition challenges also persisted, further delaying project timelines.

Temporary Setback: The decline in solar capacity addition in 2023 appears to be a temporary setback. The pipeline for 2024 is robust, with 105.3 GW of capacity planned, including an additional 70.6 GW awaiting auction.
Delayed Projects: Large-scale projects that were delayed and granted extensions from December 2022 to June 2023 will contribute significantly to capacity additions in 2024.

Reduction in Imports: India’s solar capacity initially relied on imported cells from China. However, the imposition of customs duties on imported solar modules and cells led to a significant decline in imports.
Promoting Local Manufacturing: The introduction of the Approved List of Models and Manufacturers (ALMM) enabled local manufacturers to participate in government bids. However, the ALMM mandate was suspended until April 2024 to maintain momentum in solar installations.

Renewable Energy Capacity: In 2023, India’s renewable energy capacity exceeded 180 GW, with solar contributing 40%. Despite missing the initial targets due to the pandemic, India achieved 60 GW of large-scale solar projects a year later.
Future Targets: India aims to achieve a renewable energy target of nearly 600 GW by 2032, with solar accounting for 365 GW. To meet this target, 30 GW of fresh solar capacity must be added annually for the next 8 years.

Solar Park Scheme (2014): Initiated in, the Solar Park Scheme aims to develop a series of solar parks, each with a capacity of around 500 MW, across various states.
Rooftop Solar Scheme (2016): The Rooftop Solar Scheme endeavours to harness solar power by installing solar panels on residential rooftops.
National Solar Mission (2010): The National Solar Mission stands as a crucial endeavor by both the Indian government and state authorities to foster sustainable development and tackle energy security challenges.
SRISTI Scheme (2018): The SRISTI Scheme is formulated to encourage the implementation of rooftop solar power projects in India, promoting sustainability.
International Solar Alliance (2015): Formed in 2015, the International Solar Alliance serves as a collaborative platform promoting the adoption of solar energy technologies through member-driven initiatives.
Kisan Urja Suraksha evam Utthaan Mahabhiyan (2019): Launched by the Ministry of New and Renewable Energy (MNRE) in 2019, the PM-KUSUM scheme aims to facilitate the deployment of off-grid solar pumps in rural areas and reduce reliance on the grid in connected regions.

Despite the temporary slowdown, India remains committed to expanding its solar capacity to meet its ambitious renewable energy targets and contribute to global sustainability efforts.