⚡ Quick Read
The landscape for India solar tender issuance experienced a cooling period in the second quarter of 2026, with total capacity reaching 5.4 GW. This represents a 5.7% decrease from the 5.7 GW recorded in the previous quarter and a significant 21.5% drop from the 6.8 GW issued in Q2 2025. This contraction is largely attributed to evolving procurement strategies among distribution companies (DISCOMs), which are increasingly prioritizing renewable energy solutions that align more closely with their specific demand profiles rather than generic capacity additions.
Despite the slowdown in tender issuance, the regulatory and manufacturing landscape remains active. The Ministry of New and Renewable Energy (MNRE) has expanded the Approved List of Models and Manufacturers (ALMM) by 11,964 MW, bringing the cumulative module manufacturing capacity under ALMM to 215,522 MW. Furthermore, the MNRE provided critical clarifications regarding the applicability of ALMM List II for various solar project categories.
In infrastructure news, the Power Finance Corporation has successfully auctioned the inter-state transmission system for the Ananthapuram-III PS Renewable Energy Zone Phase-I, which carries a capacity of 3 GW. Additionally, the PM Surya Ghar: Muft Bijli Yojana continues to gain momentum, having supported rooftop installations for over 5 million households and reaching a cumulative 14.8 GW of commissioned capacity since February 2024.
For EPC contractors and developers, the market is shifting toward more specialized project requirements. While large-scale tender volumes have dipped, the rise in time-of-day tariffs and the expansion of distributed solar markets offer new opportunities in peak-shaving and energy storage integration. The Central Electricity Regulatory Commission’s recent decision to restore 105.84 MW of interstate transmission connectivity grants provides a positive signal for developers facing regulatory hurdles. However, companies must remain agile as DISCOMs shift their focus toward demand-aligned procurement.
The industry is now looking toward the upcoming bidding deadlines, including the SECI collaboration partner tender due September 7, 2026, and the NTPC O&M tender for the 25 MW floating solar project at Simhadri. As India’s energy consumption continues to climb—evidenced by a 10.9% year-over-year increase in July 2026—the renewable energy sector remains the backbone of the country’s power strategy. Stakeholders should monitor further ALMM updates and the impact of rising electricity prices on the Day-Ahead Market to gauge future investment trends.
Aditya Pathre is the Founder of MVApulse and covers India’s renewable energy sector, including solar, wind, battery energy storage systems (BESS), green hydrogen, transmission infrastructure, renewable energy policy and competitive bidding. His reporting focuses on project developments, market trends, government policies and energy transition across India.
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MVApulse is an independent publication covering India’s renewable energy sector including solar, wind, BESS, transmission, green hydrogen, EPC and power markets.
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