India added a record 3 gigawatts (GW) of solar open access capacity in the second quarter of 2026, the highest-ever quarterly addition, as commercial and industrial consumers stepped up renewable power procurement ahead of regulatory and sourcing changes.
The quarterly addition was 10% higher than in the previous quarter and marginally above the year-earlier figure. In the first half of 2026, installations jumped 42% year-on-year to nearly 6 GW, compared with about 4 GW in the corresponding period of 2025.
According to Mercom India’s Q2 & 1H 2026 India Solar Open Access Market Report, developers accelerated procurement and project commissioning ahead of the phased reduction in the Inter-State Transmission System (ISTS) charges waiver and the implementation of sourcing requirements under the Approved List of Models and Manufacturers (ALMM) List-II.
Although the ALMM List-II requirement for open access projects was subsequently deferred until the end of 2026, the relaxation came after the original deadline had passed. By then, several developers had already brought forward procurement and project schedules.
Rajasthan accounted for 25% of the solar open access capacity added in the second quarter. The top five states together contributed 91% of quarterly installations, highlighting the concentration of new capacity in markets with strong industrial demand and established open access frameworks.
Demand came from a broad set of commercial and industrial consumers across automotive, cement, chemicals, electrical and electronics, FMCG, healthcare, IT and data centres, petroleum, pharmaceuticals and textiles.
The development pipeline also remained substantial, with Rajasthan holding the largest pipeline, followed closely by Maharashtra and Karnataka.
However, the pace of capacity additions faces pressure from rising project costs, transmission constraints, changes in banking and open access regulations, and domestic sourcing requirements, all of which are weighing on project economics.
In the Green Day-Ahead Market, Karnataka accounted for 35% of electricity sold during the first two months of 2026, emerging as the leading seller. Punjab was the largest buyer, followed by Damodar Valley Corporation and Gujarat.
Volumes in the Green Term-Ahead Market on the Indian Energy Exchange stood at 67.2 million units during the two months.
Meanwhile, Renewable Energy Certificate clearances on the exchange fell 86% sequentially in Q2. The decline followed elevated purchases in the March quarter, when obligated entities increased procurement ahead of the financial year-end to meet Renewable Purchase Obligation requirements.