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Rooftop additions surged 122% YoY in Q3 2026
November 12, 2026
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India installed 27.3 GW of large-scale solar capacity in the first nine months (9M) of the calendar year (CY) 2026, up 21% year-over-year (YoY) compared to 22.5 GW, according to Mercom India Research’s newly released 9M and Q3 2026 India Solar Market Update Report.
Utility-scale projects accounted for 70.9% of installations in 9M 2026, while rooftop solar contributed 29.1%. This marks a shift from 9M 2025, when utility-scale solar accounted for 81.5% of additions and rooftop solar represented 18.5%.
Total solar additions reached a record 38.5 GW in 9M 2026, up 40.3% YoY. Solar accounted for 77% of the 50 GW of new power capacity added during 9M 2026.
“India has already added more solar capacity in the first nine months of 2026 than in all of 2025, but the Q3 slowdown in large-scale installations shows where growth is being held back. Demand remains strong across utility-scale, open access, and rooftop solar, but transmission bottlenecks, domestic cell availability, higher costs, and delays in land, connectivity, and power offtake are slowing commissioning. The size of the project pipeline is significant, but what matters now is how much of that capacity can actually be brought online and on schedule,” commented Raj Prabhu, CEO at Mercom Capital Group.
Installation growth was driven by installations concentrated in the first half of 2026, as developers accelerated commissioning ahead of the June 1 implementation of the Approved List of Models and Manufacturers (ALMM) List-II requirements for solar cells and the phased reduction in interstate transmission system (ISTS) charge waivers beginning in July. These deadlines pulled some commissioning forward into the first half.
Priya Sanjay, Managing Director at Mercom India, said that ALMM List-II has exacerbated domestic solar cell shortages, driving module prices higher due to demand-supply imbalances rather than underlying component costs. “Unforeseen price increases are squeezing developer margins and disrupting financial projections. Concerns over module quality, bankability, and supplier availability could intensify demands for an extension.”
India added nearly 11 GW of solar capacity in Q3 2026, the fourth-highest quarterly total on record. Installations declined 9.5% QoQ but increased 19% YoY.  India added 6.3 GW of large-scale solar capacity in the third quarter of 2026, with installations down 24% quarter-over-quarter (QoQ) and 11% YoY. Large-scale projects accounted for 58% of total quarterly solar additions.

Rajasthan, Gujarat, and Maharashtra led large-scale solar additions in Q3 2026, accounting for 28%, 25%, and 14% of quarterly capacity additions, respectively.

Rooftop solar installations climbed 22% QoQ to 4.7 GW, from 3.8 GW in Q2 2026, and rose 122% YoY from 2.1 GW in Q3 2025.
Sanjay noted that the PM Surya Ghar program has accelerated residential rooftop installations ahead of its March 2027 deadline, while electricity cost savings continue driving commercial and industrial adoption.
Rooftop solar made up a record 42% of quarterly solar additions, signaling a significant shift in the installation mix.

As of September 2026, India’s cumulative installed solar capacity reached 176.6 GW. Large-scale solar projects accounted for 82% of installed capacity, while rooftop solar made up the remaining 18%.
Solar comprised 31% of India’s total installed power capacity and 58% of installed renewable energy capacity.
The top 10 states accounted for 98% of large-scale solar capacity commissioned during Q3 2026.
Rajasthan, Gujarat, and Karnataka continued to lead the country in cumulative large-scale solar capacity, accounting for 30%, 22%, and 11% of installations, respectively.
In Q3, government agencies issued 9 GW of large-scale solar tenders, up 61% QoQ and down 51% YoY. Auctions totaled 4 GW, down 10% QoQ and up 64% YoY.
In 9M 2026, 22.6 GW of large-scale solar tenders were announced, down 47% compared to 42.6 GW in 9M 2025. Large-scale solar auctions totaled 13 GW, a 23% decline compared to 16.6 GW in 9M 2025.
Sanjay highlighted that unsigned power purchase agreements and power supply agreements have tied up developers’ working capital, while rising module costs threaten tariff competitiveness.
While solar demand remains strong, uncertainty over post-2030 renewable energy targets complicates investment planning, financing, and long-term demand visibility.
The report also provided installation trends by state, project pipeline analysis, tender and auction activity, and market forecasts to help developers, manufacturers, investors, and other industry participants assess emerging opportunities and execution risks.
Mercom’s 9M and Q3 2026 India Solar Market Update report covers all facets of India’s solar market. For the complete report, visit https://www.mercomindia.com/product/q3-2026-india-solar-market-update
Melvin Mathew
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