India added 3 GW of open-access (off-site commercial and industrial) solar capacity in the second quarter (Q2) of 2026, the highest quarterly addition on record,according to Mercom India’s newly released Q2 & 1H 2026 India Solar Open Access Market Report.
Installations increased 10% quarter over quarter (QoQ), with Rajasthan accounting for 25% of capacity additions in Q2 2026.
Solar open-access additions reached nearly 6 GW in the first half (1H) of calendar year (CY) 2026, up 42% year over year (YoY) from 4 GW in 1H 2025.
According to the report, the installation activity during the first half was influenced by a combination of regulatory deadlines and changing market conditions. Developers accelerated procurement and commissioning ahead of the phased reduction in Inter-State Transmission System (ISTS) charges waiver and the enforcement of sourcing requirements under the Approved List of Models and Manufacturers (ALMM) List-II. Although the ALMM List-II requirements for open access projects were later deferred until the end of 2026, the relief came only after the original deadline had passed, by which time many developers had already advanced procurement and commissioning schedules.
“The record installations and a large pipeline demonstrate the strength of underlying demand from commercial and industrial consumers. However, rising project costs, transmission constraints, changing banking and open access regulations, and domestic sourcing requirements are putting pressure on project economics,” said Priya Sanjay, managing director at Mercom India. “The opportunity remains significant, but growth will increasingly depend on states providing predictable regulations and developers being able to deliver projects at tariffs that continue to offer meaningful savings to consumers.”
As of June 2026, cumulative installed solar open access capacity stood at 36 GW. Karnataka remained the leading state with a 21% share, followed by Rajasthan and Maharashtra at 16% each. Together, the top five states accounted for 77% of cumulative capacity, reflecting the market’s continued concentration in states with strong industrial demand and established open access frameworks.
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