With just over two months before the interstate transmission system (ISTS) charges waiver ends, the Indian renewable energy project developers are keeping their fingers crossed for an extension. The ISTS-charges waiver will end on June 30, 2025. While the waiver is in effect, commercial and industrial consumers can access renewable energy from various states at a more affordable price.

India added 25.3 GW of solar module capacity and 11.6 GW of solar cell capacity in calendar year 2024, according to Mercom’s recently 25.3 GW of solar module capacity and 11.6 GW of solar cell capacity in calendar year 2024, according to Mercom’s recently released State of Solar PV Manufacturing in India 2025 report. The manufacturing capacity additions in 2024 were primarily driven by demand from the solar project pipeline and the reimposition of the Approved List of Models and Manufacturers order from April 2024.

The electric vehicle (EV) industry is bracing for a short-term price surge, as the Ministry of Heavy Industries has mandated a 100% domestic content requirement for 18 EV components, including the traction battery pack, battery management system, and heating, ventilation, and air conditioning system. Original equipment manufacturers that don’t comply with the mandate will not be eligible for subsidy under the Phased Manufacturing Program mechanisms of the PM Electric Drive Revolution in Innovative Vehicle Enhancement Program.

Uttar Pradesh, India’s largest state, has demonstrated significant potential for solar adoption. With ample sunshine for most of the year and government programs promoting clean energy usage, the state is emerging as a hub for solar installations, particularly in the residential segment. The state ranked among the top states for rooftop solar installations, as per Mercom India’s Q4 & Annual 2024 India Rooftop Solar Market Report.

As India’s power grid becomes increasingly complex due to rising renewable energy penetration, the need for a stable grid has never been more pressing. With the growing share of variable solar and wind power in the energy mix, battery energy storage systems are emerging as a critical enabler, helping bridge the gap between generation and consumption while maintaining grid balance.

The implementation of the PM Surya Ghar: Muft Bijli Yojana in Karnataka has been slow to take off. Despite a sharp rise in registrations, only 6,519 rooftop solar systems with a total capacity of 24.95 MW have been installed so far. The conversion rate from registrations to installations has been extremely poor. Across five distribution companies (DISCOMs), the total number of registrations is 615,386, while the number of installations is a mere 6,519, corresponding to 1.1%.

Corporate funding for energy storage companies, including venture capital, debt, and public market financing, totaled $2.2 billion across 31 deals in the first quarter (Q1) of 2025, according to Mercom Capital Group’s newly released Q1 2025 Funding and M&A Report for Energy Storage. This represents an 81% year-over-year (YoY) drop from the $11.7 billion raised in 29 deals in Q1 2024.

Energy banking enables renewable energy developers to inject surplus power into the grid for withdrawal during periods when needed, thereby optimizing energy utilization. This mechanism ensures flexible energy management for developers and generates additional revenue for DISCOMs through associated banking charges. According to Mercom’s Q4 and Annual India Solar Open Access Market Report, India’s cumulative open-access solar installations reached 20.2 GW at the end of Q4 2024.

The solar companies secured $4.8 billion corporate funding in 39 deals in Q1 2025, a 41% YoY decrease from $8.2 billion raised in 42 deals. However, funding increased 20% quarter-over-quarter compared to $4 billion raised in 40 deals in Q4 2024. These figures were revealed in Mercom Capital Group’s newly released Q1 2025 Solar Funding and M&A Report.

The Ministry of New and Renewable Energy (MNRE) mandated generating and inputting the 16-digit domestic content requirement (DCR) certificate number on the PM Surya Ghar portal to prevent duplicate module serial number issues. Vendors will no longer be allowed to enter the serial numbers manually, and the integrated DCR and PM Surya Ghar portal will auto-generate the module serial numbers.

MNRE issued revised draft guidelines setting the validity of the prototype certificate for wind turbine at three years. The draft guidelines include a framework for installing prototype wind turbine models. They will apply to all wind turbine manufacturers in India and will be implemented by the National Institute of Wind Energy, Chennai.

Kerala announced plans to add 1 GW of utility-scale solar projects and solar parks across the state by 2030 as part of its Draft Power Policy, 2025. It also aims to install a capacity of 2.5 GW through decentralized solar initiatives and develop 1.5 GW from non-solar renewable sources. Kerala’s transmission infrastructure will be significantly upgraded to accommodate the expected surge in renewable energy generation and handle a peak load of up to 10 GW by the decade’s end.

The Bihar Electricity Regulatory Commission proposed including a new category of distributed renewable energy in its Renewable Power Obligation for the financial year 2030. The proposed targets were published in the draft Bihar Electricity Regulatory Commission (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2025.