⚡ Quick Read
The Indian renewable energy landscape witnessed a historic surge as the nation added a record 27 GW of solar capacity in the first half (H1) of calendar year 2026. According to the latest data from Mercom India Research, this represents a significant 50% year-over-year growth compared to the 18 GW added during the same period in 2025. This rapid expansion underscores the country’s aggressive push toward its clean energy targets, with solar power now accounting for 76% of the 36 GW of total new power capacity added across all sectors in India.
The first half of 2026 saw consistent momentum, with 15 GW commissioned in Q1 and 12 GW in Q2. Large-scale solar projects remain the backbone of this growth, contributing 8 GW in Q2 alone. Geographically, Gujarat, Rajasthan, and Maharashtra emerged as the top performers for utility-scale installations, accounting for 40%, 19%, and 17% of the quarterly additions, respectively. As of June 2026, India’s cumulative installed solar capacity stands at 165 GW, with large-scale projects comprising 83% of the total and rooftop solar making up the remaining 17%. Solar PV now represents 30% of India’s total installed power capacity and 57% of its total renewable energy portfolio.
For EPC contractors and developers, the H1 2026 surge was largely driven by a strategic race to commission projects ahead of critical policy shifts, including the June 1 implementation of ALMM List-II for solar cells and the reduction of ISTS charge waivers from 75% to 50% in July 2026. However, the industry faces mounting operational challenges. Developers are reporting significant delays in grid connectivity, as evacuation infrastructure is failing to keep pace with the rapid commissioning of utility-scale plants. Furthermore, domestic shortages of high-efficiency cells, particularly TOPCon, are creating procurement bottlenecks that threaten to disrupt project timelines for the remainder of the year.
While the project pipeline remains robust, the ability to convert these plans into commissioned capacity will depend on addressing two primary constraints: transmission availability and domestic supply chain stability. Without urgent improvements in grid evacuation infrastructure, the pace of commissioning may stabilize or slow down in H2 2026. As the India renewable energy sector continues to mature, stakeholders must navigate these infrastructure hurdles to maintain the momentum required to meet national long-term decarbonization goals.
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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