India will install a 367 MW rooftop photovoltaic installation in the first quarter of 2024

The rooftop solar sector continues to be concentrated in multiple states, with Gujarat, Maharashtra, Rajasthan, Kerala and Karnataka accounting for 67% of new solar installations in the last quarter. The top ten states for rooftop solar capacity also accounted for 77% of cumulative rooftop solar installations as of March.

However, the relative difficulties in the rooftop sector do not mean that Indian solar is performing poorly overall. As the chart above shows, the first quarter was a record for Indian solar power, as 10 GW of new capacity was added to the sector, which means a 400% increase on a quarter-on-quarter basis.

Much of this growth is due to the temporary relaxation of the Approved List of Models and Manufacturers (ALMM), Indian legislation intended to prioritize the use of Indian-made renewable energy technology, which has been suspended to spur the growth of India’s renewable energy sector.

ALMM came back into effect on April 1, a day after the Mercom India data period, and the removal of foreign modules, especially from China, could lead to installation figures being more in line with historical precedents in the coming quarters.

While the government’s attention has been a boon for the solar sector overall, similar legislative support could be necessary to help the rooftop sector. Last November, the Council on Energy, Environment and Water (CEEW), a policy research institute, noted that India’s rooftop installations could reach 32 GW if the Ministry of New and Renewable Energy subsidizes rooftop projects. Without these subsidies, CEEW expects almost negligible growth in the rooftop sector, expecting installed capacity to be no higher than 11 GW.