India's rooftop solar installations grow 3.2% to 872 MW in first half of 2023: Mercom

India's rooftop solar installation: According to Mercom India, rooftop solar installations in India saw a 3.2 per cent increase, totalling 872 megawatts (MW) during the January-June 2023 period.

During the first half of 2022 (H1 2022), India added 845 MW of rooftop solar capacity, the research firm reported.

The cumulative rooftop solar capacity in India reached 9.6 gigawatts (GW) by the end of June 2023, as stated in the 'Mercom India Rooftop Solar Market Report.'

Priya Sanjay, Managing Director of Mercom India said, “The downward trajectory of costs began in the quarter, and to see the tangible impact of this shift will require time. Effects of the cost reduction are anticipated to manifest more prominently in the upcoming quarters.”

In the second quarter, there was an addition of 387 MW of rooftop solar capacity, marking a 20 per cent rise compared to the January-March 2023 period but a slight 0.5 per cent decrease from April-June 2022.

Lower-than-expected H1 growth

Raj Prabhu, CEO of Mercom Capital Group, commented, "Rooftop solar did not meet expectations in H1, even with falling component prices and growing demand. We see a much stronger second half as installers holding out for better margins start ramping up installations and meeting demand at a much quicker pace."

The involvement of state distribution companies (DISCOMs) in promoting solar adoption is essential to drive rooftop solar initiatives.

“The diversity in installation rates also stems from variations in state electricity tariffs and usage patterns. States with considerably lower DISCOM tariffs dampen the incentive for rooftop adoption due to negligible savings,” explained Sanjay.

The capacity additions were distributed among residential consumers (54 per cent), industrial consumers (25 per cent), and commercial consumers (21 per cent). Notably, industrial installations were prominent in sectors like pharmaceuticals, chemicals, fast-moving consumer goods (FMCG), automobiles, and auto components.

Gujarat led the states in cumulative rooftop solar installations, followed by Maharashtra and Rajasthan.

(With PTI inputs)