India’s Renewable energy sector began 2026 with a sharp acceleration in project activity and capital inflows, as over 7 GW of fresh tenders were floated in January, investments crossed $2.1 billion, and green power generation jumped more than 20% in a single month — underlining strong execution momentum even as equipment costs moved higher.
Data from JMK Research & Analytics’ shows tendering remained buoyant across both project development and EPC segments. More than 5,905 MW of new requests for selection (RfS) were issued under project development during the month, led by a large 2,450 MW solar-plus-energy storage tender floated by Rajasthan agencies, signalling the growing push for round-the-clock renewable power.
EPC activity was equally active, with over 1,256 MW of tenders floated. Among key projects, the Solar Energy Corporation of India invited EPC bids for 700 MW of solar capacity in Gujarat under its Tranche XIII programme, which had earlier been awarded to JSW Neo Energy at a tariff of Rs 2.56 per unit.
Storage-Linked Growth
Auction outcomes reflected sustained developer appetite for hybrid and storage-linked projects. Around 1,200 MW of solar with energy storage capacity was allocated in January under SECI’s project development category. The capacities were secured by NLC India Renewables with 600 MW, RPIL Power Three with 300 MW, Engie India with 200 MW, and Oriana Power with 100 MW. Tariffs discovered in the auction remained tightly clustered between Rs 3.12 and Rs 3.13 per unit, highlighting continued pricing competitiveness despite the inclusion of storage.
The surge in tendering comes on the back of record capacity additions in 2025. India added around 37.9 GW of solar and 6.3 GW of wind capacity during the calendar year, taking cumulative renewable capacity to about 258 GW. Solar installations rose nearly 55% year-on-year, while wind additions jumped over 85%, driven by faster project execution and commissioning ahead of the interstate transmission system (ISTS) waiver deadline.
In December 2025 alone, solar and wind installations totalled 3,487 MW, up 5.3% month-on-month. Rajasthan, Maharashtra and Gujarat together accounted for about 80% of utility-scale solar additions. Maharashtra also led rooftop solar growth with 211 MW added during the month, while Gujarat emerged as the top wind market with 183 MW of new installations, followed by Karnataka and Tamil Nadu.
Power generation trends reflected a strong seasonal rebound. Renewable sources produced 22,069 million units (MU) in January 2026, up around 21% from December. Wind output surged nearly 39% on stronger winter winds, while solar generation edged up by about 4.3%.
Capital Flows
Investor interest in the sector remained robust, with total investments of about $2.09 billion recorded during the month. The largest fund raise came from ReNew Energy Global, which raised $600 million through its first corporate dollar green bond issued via GIFT City’s IFSC, aimed largely at refinancing existing debt at lower borrowing costs.
M&A activity also picked up pace. Waaree Renewable Technologies acquired a 55% stake in Associated Power Structures for $133.5 million, while Inox Neo Energies bought 250 MWp of operational solar assets from Sunsource Energy for about $111 million, with an option to add another 50 MWp.
Green power trading continued to be dominated by the Green Day-Ahead Market on the Indian Energy Exchange. Around 808 MU was traded in January, with GDAM accounting for more than 94% of total green market volumes. The average market clearing price stood at Rs 4.06 per unit.
However, cost pressures are beginning to re-emerge. Globally, TOPCon module prices rose 4.5% month-on-month, while M10 TOPCon cell prices jumped over 22%. Domestic module prices also firmed up, with Mono PERC modules at Rs 15.93 per watt, TOPCon modules at Rs 16.36 per watt, and DCR TOPCon modules at a significantly higher Rs 27.44 per watt.