India added a record 27 GW of solar capacity in the first half of calendar year 2026, up 49% from 18 GW in the year-ago period, as developers accelerated project commissioning ahead of key policy changes. Solar accounted for 76% of the 36 GW of new power capacity added during January-June.
The commissioning rush was driven by rising clean energy demand and efforts to complete projects before the June 1 implementation of ALMM List-II for solar cells and the reduction in the inter-state transmission system charge waiver from 75% to 50% scheduled for July 2026. India added 12 GW of solar capacity in the June quarter, the second-highest quarterly addition on record after 15 GW in Q1.
According to Mercom India Research’s Q2 and 1H 2026 India Solar Market Update, Q2 installations fell 24% sequentially but were 1% higher than 11 GW commissioned in the corresponding quarter of 2025.
Large-scale solar additions stood at 8 GW in Q2, down 37% from nearly 13 GW in the previous quarter and 23% lower than 10 GW a year earlier. The segment accounted for 68% of total solar installations during the quarter.
Gujarat led utility-scale installations in Q2 with a 40% share, followed by Rajasthan at 19% and Maharashtra at 17%. The top 10 states accounted for 98% of large-scale capacity commissioned during the quarter.
India’s cumulative installed solar capacity reached 165 GW as of June 2026, with large-scale projects accounting for 83% and rooftop solar 17%. Solar photovoltaic capacity constituted 30% of India’s total installed power capacity and 57% of renewable capacity. Rajasthan remained the largest utility-scale solar market with 31% of cumulative installations, followed by Gujarat at 22% and Karnataka at 11%.
The strong commissioning numbers, however, came alongside a sharp slowdown in the project pipeline. Large-scale solar tenders fell 54% to 11 GW in H1 2026 from 24 GW a year earlier, while auctions declined 59% to over 5 GW from 13 GW.
In Q2, agencies issued over 5 GW of tenders, down 6% quarter-on-quarter and 22% year-on-year. Auctions fell 56% sequentially and 40% annually to nearly 2 GW as the market focused on executing previously awarded projects.
Future additions will hinge on timely PPAs and PSAs, transmission readiness, land and grid approvals, equipment availability and the commercial viability of projects awarded under earlier cost assumptions.