India installed a record 27 GW of solar capacity in the first half 2026, up 50% year over year from the 18 GW added in H1 2025, according to Mercom India Research’s Q2 and H1 2026 India Solar Market Update. Solar accounted for 76% of the 36 GW of new power capacity added during the period.
According to the report, solar project commissioning in H1 2026 was driven by rising clean energy demand and developers accelerating project completion ahead of key policy changes. Many developers moved projects forward before the June 1 implementation of ALMM List-II for solar cells and the scheduled reduction in the ISTS charge waiver from 75% to 50% in July 2026.
Of the 27 GW added in H1 2026, 12 GW of solar capacity was installed in the second quarter of 2026, making it the second-highest quarterly addition on record, after the 15 GW installed in Q1 2026.
Large-scale projects accounted for 68%, or 8 GW, of all solar installations during Q2 2026, down 20% year-on-year from 10 GW in Q2 2025. Gujarat, Rajasthan, and Maharashtra led utility-scale solar additions in Q2 2026, accounting for 40%, 19%, and 17% of installations, respectively.
“India added record solar capacity in the first half of 2026, supported by strong demand and projects commissioning ahead of key policy changes. The concern now is whether this pace can continue,” said Raj Prabhu, CEO of Mercom Capital Group. “Utility-scale project commissioning is being slowed mainly by limited transmission availability and domestic cell shortages. Several projects are reaching completion but are unable to connect to the grid because evacuation infrastructure is not ready. ALMM List-II has added pressure on domestic cell supply, especially TOPCon, affecting timely procurement and project planning. India’s large project pipeline will not translate into commissioned capacity at current forecasted levels unless these major bottlenecks are addressed.”
As of June 2026, India’s cumulative installed solar capacity had reached 165 GW. Large-scale solar projects represented 83% of the installed capacity, while rooftop solar accounted for the remaining 17%. Solar photovoltaics comprised 30% of India’s total installed power capacity and 57% of its installed renewable energy capacity.
Rajasthan, Gujarat, and Karnataka continued to lead the country in cumulative utility-scale solar capacity, accounting for 31%, 22%, and 11% of total installations, respectively.
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