India installed a record 27GW of solar capacity in the first half of 2026, up 49% year on year from 18GW in the same period last year, according to new data from market research firm Mercom India Research.
Solar accounted for 76% of the 35.8GW of new power generation capacity added during the first half. The strong first-half performance followed a record 15.3GW of solar installations in the first quarter. Q1 installations were 143% higher than the 6.3 GW added in Q1 2025 and 49% above the 10.3 GW installed in Q4 2025.
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Wood Mackenzie also expects India’s solar buildout to accelerate through the remainder of the year, forecasting more than 50GWdc of new capacity in 2026, which would make it the country’s strongest year for solar additions.
Moreover, India added a further 11.7GW of solar capacity in the second quarter, making it the country’s second-highest quarterly addition on record. Q2 installations fell 24% from Q1 but were marginally higher than the 11.3GW installed in Q2 2025.
India’s cumulative solar capacity reached 164.8GW at the end of June 2026, with utility-scale solar projects accounting for 83% of the installed solar base, while rooftop solar (subscription required) accounted for the remaining 17%.
Solar PV accounted for 30% of India’s total installed power capacity and 57% of its installed renewable energy capacity by the end of June 2026.
Utility-scale solar installations decline in Q2
According to the report, large-scale solar installations totalled 7.9GW in Q2 2026, down 37% quarter on quarter from 12.6GW in Q1 and 23% year on year from 10.2GW in Q2 2025. Large-scale projects accounted for 68% of total solar capacity added during the quarter.
Gujarat led utility-scale solar installations, accounting for 40% of Q2 additions, followed by Rajasthan at 19% and Maharashtra at 17%. The three states together represented 76.1% of India’s large-scale solar additions during the quarter.
The top 10 states accounted for 98% of large-scale installations, highlighting the continued concentration of utility-scale development in a small number of markets.
The Indian government is also moving to strengthen domestic solar manufacturing, with a production-linked incentive (PLI) scheme to support 10GW polysilicon production and reduce import dependence across the PV supply chain.
Separately, the Union Cabinet has approved an INR50.7 billion (US$531.7 million) programme to deploy 5GW of floating solar PV with co-located battery energy storage systems under the Pradhan Mantri Surya Sarovar Yojana (subscription required). The programme will provide at least two hours of storage, equivalent to 10GWh, with projects to be sanctioned between FY2026-27 and FY2030-31 and financial support continuing through FY2032-33.
Tender and auction activity slows
Despite record installation volumes, new utility-scale procurement activity weakened during the first half of 2026. Developers and procuring agencies announced 11GW of large-scale solar tenders during H1 2026, down 54% from 24GW in the corresponding period of 2025.
The slowdown comes as India seeks to scale non-fossil power capacity to 500GW by 2030, requiring sustained renewable deployment alongside expanded transmission and energy storage (subscription required).
Large-scale solar auctions totalled 5.4GW during the first half, a 59% decline from 13.2GW a year earlier.
In Q2 alone, 5.4GW of utility-scale solar tenders were issued, down 6% quarter on quarter and 22% year on year. Auctions fell to 1.6GW, declining 56% from Q1 and 40% from Q2 2025.
The decline in new procurement activity came as the market focused on executing projects that had already been awarded rather than adding new tender capacity.
Execution risks emerge as pipeline expands
Commissioning activity remained strong during the first half as developers accelerated project completion ahead of key policy changes, including the June 1 implementation of the Ministry of New and Renewable Energy’s (MNRE’s) Approved List of Models and Manufacturers (ALMM) List-II for domestic solar cells.
Future installation growth will increasingly depend on the timely execution of power purchase agreements (PPAs) and power sale agreements, as well as transmission availability, land and grid connectivity approvals, equipment availability and project economics, the report said.
Projects awarded under earlier cost assumptions could face additional execution pressure as developers contend with changing equipment costs and procurement conditions.
India’s renewable energy transition, from solar PV and energy storage to grid integration, will be a key topic of discussion at the Renewable Energy India (REI) Expo, co-located with the Energy Storage Summit India (ESS India), in Greater Noida on 22-24 October 2026. For the full agenda and booking details, click here.
