India to add 42.5GW of solar capacity in 2026: JMK Research

Despite the slowdown in the final quarter, India recorded its highest-ever annual renewable additions in 2025, installing nearly 37.9GW of solar capacity. Utility-scale solar additions reached 28.6GW in 2025, a 54.6% increase over 2024, while rooftop installations rose to 7.9GW, up 72% year-on-year, largely driven by the PM Surya Ghar: Muft Bijli Yojana. The Government of India scheme targets rooftop solar deployment across 10 million households, offering up to 300 units of free electricity per month.

Off-grid solar additions stood at 1.35GW in 2025, compared with 1.48GW in 2024, with Maharashtra accounting for 1.0GW of deployments, primarily through solar pump installations under the Ministry of New and Renewable Energy’s (MNRE’s) flagship scheme PM-KUSUM and state schemes. The aim of the PM-KUSUM scheme is to de-dieselise the farm sector, enhance farmer income and provide energy security by promoting solar energy in agriculture.

Solar dominates India’s renewable mix 

According to the report, India’s total installed renewable capacity stood at 258GW as of 31 December 2025, with solar accounting for 53% of the mix. Installed solar capacity reached approximately 136GW, compared with 55GW of wind and 51GW of hydro. 

The pipeline of solar, wind, hybrid and storage projects expected to be commissioned over the next 4-5 years totals around 169GW, with a further 32GW under bidding. 

Solar and wind additions in 2025 were concentrated in Gujarat, Rajasthan, Maharashtra, Karnataka and Tamil Nadu, which together accounted for approximately 83.7% of total installations. Gujarat led with around 11.1GW of additions, followed by Rajasthan at 10.14GW and Maharashtra at 9.8GW. 

Tender activity slows, RE+storage gains traction 

In the fourth quarter of 2025, 10 tenders totalling 4.2GW were issued across solar, wind, hybrid and RE+storage segments, marking a 33% decline from Q3 2025 and a 55% drop from Q4 2024 (9.4GW). The RE+storage segment accounted for 52% of tendered capacity. 

Around 4.6GW was allocated during the quarter, nearly double Q3 2025 levels but 40% lower year-on-year. The lowest tariff discovered was INR2.86/kWh under SECI’s 2000MW solar tender with 1,000MW/4,000MWh storage, while the highest tariff reached INR6.74/kWh under SJVN’s 1500MW RE with ESS tender. 

Domestic module capacity surges as imports remain elevated 

India’s solar module manufacturing capacity has expanded nearly 14-fold between 2020 and 2025, reaching 200GW. Of this, 145GW is enlisted under the Approved List of Models and Manufacturers (ALMM). 

Cell manufacturing capacity stood at 31.17GW in 2025, with 17.88GW enlisted under the Approved List of Cells and Manufacturers (ALCM), or ALMM List-II. Upstream capacity remains limited at around 8.12GW of wafer-ingot manufacturing, with no domestic polysilicon production. 

In Q4 2025, four manufacturers added around 13.3GW of module and 1.13GW of cell capacity. Waaree Energies increased module capacity by 3.6GW, taking its total domestic module capacity to 19.7GW by December 2025. 

With respect to exports, in Q4 2025, India’s solar PV module exports reached US$98.96 million, with the US accounting for around 97% of export value. During the same period, module imports totalled US$216.25 million, with Vietnam (33%), China (32%) and Malaysia (31%) as key suppliers. 

However, solar cell imports have increased 31% quarter-on-quarter, at US$892.15 million in Q4 2025, with China accounting for 67% of imports.