India adds record 25 GW of solar capacity in 2024, says Mercom report

Solar capacity addition more than doubled to 25.2 gigawatt (GW) in 2024 as developers raced to complete delayed projects, Mercom Capital said.

The country added 8.3 GW of solar capacity during 2023, the US-based research firm said in its latest report.

"Commissioning of a significant capacity of previously delayed projects drove capacity additions in 2024," Mercom India Solar Market Update report said.

According to Mercom, large-scale solar projects (including solar open access) accounted for more than 87 per cent of the total capacity additions, while rooftop solar contributed nearly 13 per cent.

Installations under the open access model comprised over 31 per cent of the large-scale solar capacity additions.

Rajasthan, Gujarat, and Maharashtra led the large-scale solar installations in 2024, accounting for around 32 per cent, 27 per cent, and 8 per cent of the capacity additions, respectively.

"India's solar sector saw record-breaking installations in 2024, but the numbers could have been significantly higher if not for transmission issues and supply chain delays," said Raj Prabhu, CEO of Mercom Capital Group.

Sharing his outlook, he said rising costs due to import duties and expensive domestic modules remain a concern for the industry.

With over 35 GW of annual solar additions needed to meet 2030 goals, the industry requires clear, stable policies that balance local manufacturing with seamless project development.

In 2024, India added 34.7 GW of new power capacity. Solar power accounted for almost 73 per cent of the capacity additions.