India Witnesses Soaring Growth in Open Access Solar Installations, Adding 20.6% Capacity in Q3 2023: Report

In the third quarter of 2023, India experienced a notable surge in new open access solar installations, marking a substantial 20.6% increase to reach 907 MW, as reported by Mercom India. This growth is particularly significant when compared to the corresponding period in the previous year, during which 752 MW of open access solar capacities were added. The quarterly addition, when viewed on a quarter-on-quarter basis, revealed a remarkable 36% uptick from the 666 MW recorded in the April-June quarter. As of September 2023, India’s cumulative installed open access solar capacity stood at an impressive 11 GW.

Under the open access model, individuals or companies have the opportunity to establish green energy plants, subsequently selling the generated clean power in the open market to distribution companies (discoms) or private consumers. The attractiveness of this model has been heightened by a decline in solar project costs, prompting a resurgence in the signing of power purchase agreements that were previously delayed.

Mercom India’s Managing Director, Priya Sanjay, noted that a notable drop in solar project costs has garnered consumer attention, leading to increased activity in the sector. Moreover, the emphasis on adopting environmentally friendly products and services has gained traction among large and medium-scale enterprises, further propelling the growth of the green energy open access market.

Throughout the first nine months of 2023, India added 2.2 GW of open access solar, exhibiting a marginal 7.3% decline from the 2.3 GW installed during the same period in 2022. Maharashtra and Tamil Nadu emerged as key contributors, accounting for 14.1% and 10.3%, respectively, of the cumulative installed open access solar capacity. Notably, the top five states collectively represented 88.5% of open access solar installations during the quarter. India concluded the September quarter with 12.5 GW of open access solar projects in various stages of development, indicating sustained momentum in the sector.