May, 14: India installed 15.3 gigawatts (GW) of solar capacity in the first quarter (Q1) of 2026, the highest quarterly capacity additions recorded to date, an increase of 143% year-over-year (YoY) compared to the 6.3 GW installed in Q1 2025, according to Mercom India’s newly released Q1 2026 India Solar Market Update Report.
Solar installations were up 49% quarter-over-quarter (QoQ) compared to 10.3 GW added in Q4 2025.
In Q1 2026, India installed 12.6 GW of large-scale solar capacity, with open access projects accounting for 21% of the total. Large-scale projects accounted for 82% of total solar capacity additions, and grew 55% QoQ and 147% YoY.
A combination of approaching policy deadlines and improved transmission readiness in key solar markets drove record solar project commissioning activity in Q1 2026. One of the main drivers was the upcoming implementation of ALMM List-II from June 2026, which prompted developers to accelerate project commissioning under the existing procurement framework amid concerns over limited domestic DCR cell availability and rising module procurement costs.
Installation activity was also supported by stronger execution under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, along with accelerated commissioning of open access projects ahead of the next phase of Inter-State Transmission System (ISTS) waiver reductions.
“India’s solar sector recorded its strongest quarter ever in Q1 2026, driven by accelerated project execution ahead of the June ALMM-II deadline and the reduction in ISTS charge-waiver benefits. 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 remain strong, transmission readiness and evacuation infrastructure are struggling to keep pace with the rapid growth in renewable capacity. As renewable penetration increases, curtailment, grid flexibility, and storage integration are becoming critical to sustaining future growth,” said Raj Prabhu, CEO of Mercom Capital Group.
In Q1 2026, India added 19.9 GW of new power capacity, with solar accounting for 77% of total additions.
As of March 2026, India’s cumulative installed solar capacity, including large-scale and rooftop, stood at 152 GW. Large-scale solar projects contributed 85%, and rooftop solar accounted for 15% to cumulative installed solar capacity during the quarter.
Solar energy accounted for 28% of India’s total installed power capacity and 55% of the total installed renewable energy capacity.
Rajasthan had the highest cumulative installed large-scale solar capacity, accounting for 32% of the country’s total installations. Gujarat and Karnataka followed with 21% and 11%, respectively.
In Q1 2026, Gujarat and Rajasthan led large-scale solar installations, accounting for approximately 40% and 39% of the capacity additions. Maharashtra ranked third, with 6%.
The average cost of large-scale solar projects using TOPCon DCR modules in the quarter fell nearly 1% QoQ but rose 6% YoY.
Tender activity surged to 3 GW during the quarter, down 68% YoY and up 100% QoQ. In Q1 2026, 4 GW of solar projects were auctioned, down 47% QoQ and 64% YoY.
Key Highlights from Mercom India Research’s Q1 2026 India Solar Market Update:
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India added 15.3 GW of solar capacity in Q1 2026, an increase of 143% YoY
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Large-scale projects accounted for 82% of total quarterly additions
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Gujarat, Rajasthan, and Maharashtra led large-scale solar installations during the quarter
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Solar accounted for 77% of the new power capacity added in the country in Q1 2026
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Cumulative installed solar capacity stood at 152 GW as of March 2026