India installed 15.3 GW of solar capacity in the first quarter of 2026 – the highest quarterly increase ever – which represents a 143% increase year-on-year, according to Mercom India.
India installed 15.3 GW of solar capacity in the first quarter of 2026, the highest quarterly increase ever and a 143% year-on-year increase from the 6.3 GW installed in the first quarter of 2025, according to Mercom India’s Q1 2026 India Solar Market Update Report.
Large-scale projects accounted for 82% of total quarterly solar installations, adding 12.6 GW in value in the quarter. Open access projects contributed 21% to the large-scale expansion of solar energy capacity.
Mercom said record commissioning activity was driven by a combination of looming policy deadlines and improved transmission readiness in key solar markets. One of the key drivers was the upcoming implementation of Approved List of Models and Manufacturers (ALMM) List-II from June 2026, which prompted developers to accelerate commissioning of projects under the existing procurement framework, amid concerns over limited availability of domestic mobile phones and rising module procurement costs.
The installation activity was also supported by stronger implementation under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program – the Indian government’s solar program targeting farmers and rural communities – along with accelerated commissioning of open access projects ahead of the next phase of the Inter-State Transmission System (ISTS) waiver reduction.
“India’s solar sector posted its strongest quarter ever in Q1 2026, driven by accelerated project execution ahead of the June ALMM-II deadline and reduction in ISTS duty waiver benefits,” said Raj Prabhu, CEO of Mercom Capital Group. “However, transmission bottlenecks could still play the spoiler in what is expected to be a record year for solar installations. While project execution and commissioning activity remains strong, transmission readiness and evacuation infrastructure are struggling to keep pace with the rapid growth of renewable capacity. As renewable energy penetration increases, curtailment, grid flexibility and storage integration will become critical to supporting future growth.”
As of March 2026, India’s cumulative installed solar capacity was 152 GW, with large-scale projects accounting for 85% and rooftop solar 15%. Solar energy accounted for 28% of India’s total installed energy capacity and 55% of total installed renewable energy capacity.
Rajasthan had the highest cumulative installed large-scale solar capacity with 32% of total PV installations, followed by Gujarat with 21% and Karnataka with 11%. In the first quarter of 2026, Gujarat and Rajasthan led the quarterly large-scale expansions with around 40% and 39% of capacity additions, respectively. Maharashtra stood third with 6%.
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