IN Brief:
- India installed 15.3GW of solar capacity in Q1 2026, its highest quarterly total to date.
- Large-scale projects accounted for 12.6GW, representing 82% of total solar additions during the quarter.
- The commissioning surge shows how policy deadlines, transmission readiness, grid flexibility, and storage integration are now closely linked.
Mercom India has recorded India’s strongest solar quarter to date, with 15.3GW of capacity installed in the first quarter of 2026.
The total represents a 143% year-on-year increase from 6.3GW in Q1 2025 and a 49% quarter-on-quarter increase from 10.3GW in Q4 2025. Solar accounted for 77% of all new power capacity added in India during the quarter, placing it at the centre of the country’s generation expansion.
Large-scale solar accounted for 12.6GW of the Q1 2026 total, representing 82% of quarterly additions. Open access projects made up 21% of large-scale installations, while activity under the PM-KUSUM programme also supported deployment.
India’s cumulative installed solar capacity, including large-scale and rooftop systems, reached 152GW by the end of March 2026. Large-scale solar contributed 85% of cumulative installed solar capacity, while rooftop solar accounted for 15%. Solar represented 28% of India’s total installed power capacity and 55% of total installed renewable energy capacity.
Further detail is available through Mercom India’s Q1 2026 Solar Market Update.
The record quarter was driven by a combination of policy deadlines and improved transmission readiness in key solar markets. The upcoming implementation of ALMM List-II from June 2026 encouraged developers to accelerate commissioning under the existing procurement framework, with domestic DCR cell availability and module procurement costs influencing delivery schedules.
Open access projects also advanced ahead of the next phase of Inter-State Transmission System waiver reductions. Gujarat and Rajasthan led large-scale solar installations during the quarter, accounting for approximately 40% and 39% of capacity additions respectively, while Maharashtra ranked third with 6%.
The figures show how policy deadlines can reshape commissioning behaviour. Developers often accelerate projects ahead of procurement rule changes, grid charge adjustments, or eligibility cut-offs, creating sharp quarterly peaks in completed capacity. Those peaks can place pressure on engineering resources, module supply, inverter availability, transmission evacuation, and commissioning teams.
Transmission readiness now sits at the centre of India’s next stage of solar growth. Large additions require evacuation infrastructure, substation capacity, reactive power management, forecasting systems, curtailment protocols, and flexibility resources. Where network infrastructure lags generation assets, renewable capacity can face constraints even after projects are physically complete.
Grid capacity is already limiting renewable delivery in several markets. In Portugal, renewable deployment is being slowed by transmission and distribution constraints, with capacity allocation and network reinforcement shaping project progress. India’s solar market operates at a much larger quarterly scale, but the same basic constraint applies: generation growth depends on the network’s ability to absorb, move, and balance power.
Storage will become more important as solar penetration rises. High midday generation, evening ramps, curtailment risk, and local congestion increase the value of battery energy storage, hybrid renewable assets, and more dynamic grid operation. Solar-plus-storage procurement, such as Energa’s Polish solar and battery projects, shows how markets are beginning to pair generation with flexibility to improve system value.
India’s tender and auction data point to a more uneven pipeline behind the record commissioning quarter. Tender activity reached 3GW during Q1, down year-on-year but up sharply from the previous quarter, while 4GW of projects were auctioned. Record additions therefore appear to reflect accelerated delivery from earlier procurement as well as current policy pressure.
The next phase of India’s solar expansion will be shaped by transmission, storage, and grid flexibility. Capacity additions can continue at scale only if evacuation infrastructure, balancing tools, and connection readiness keep pace with project execution.