India added 50.6 GW of solar module and 9.7 GW of solar cell manufacturing capacity in the first half (1H) of 2026, according to Mercom India’s State of Solar PV Manufacturing in India 1H 2026 report. The top 10 manufacturers accounted for nearly 60% of the country’s module manufacturing capacity.

India added 8.2 GWh of battery energy storage capacity in 1H 2026, nearly 84 times the 98.4 MWh installed during the same period in 2025. The sharp increase reflects the rapid expansion of storage deployments as renewable penetration rises.

The Union Cabinet has approved the Green Energy Corridor Phase III (GEC III) program to strengthen intrastate transmission infrastructure across the country. The program provides for the evacuation of up to 135 GW of renewable energy and deployment of 50 GWh of battery energy storage systems (BESS) at renewable energy projects or other locations considered important for grid flexibility.

The Central Electricity Authority proposed mandating co-located energy storage systems for new ground-mounted solar and onshore wind projects. The proposal could significantly alter project costs, financing requirements, and tariffs as developers factor storage into new renewable projects.

The supply mismatch between India’s solar module and cell capacity has had an unlikely fallout: low utilization of module manufacturing lines. With average capacity utilization at about 35% to 40%, manufacturers are struggling to keep their lines running as module capacity continues to expand while domestic cell production lags.

Rising power purchase agreement tariffs are offsetting gains from lower open access charges for solar consumers. Although the share of open access charges in landed solar power costs declined across most major states during the second quarter of 2026, higher PPA tariffs limited the resulting savings.

The Maharashtra State Electricity Distribution Company announced the winners of its 2,000 MW/4,000 MWh battery energy storage auction. The auction is among the largest standalone storage procurements undertaken by a state distribution company in India.

Integrating battery energy storage with rooftop solar systems could improve residential power consumption and reduce reliance on the grid during non-solar hours, but it is expected to increase upfront costs and extend the payback period.

India’s average solar irradiance ranges from 3.5 kWh/m²/day to 5.5 kWh/m²/day. Differences between satellite-derived irradiance estimates and actual ground conditions can create uncertainty in generation forecasts and financial models, affecting project economics and investment decisions.

The Ministry of New and Renewable Energy (MNRE) has expanded the Approved List of Models and Manufacturers (ALMM) List-I by adding 12,256 MW of solar module capacity, increasing the cumulative enlisted capacity to approximately 225.5 GW.

REC Power Development and Consultancy announced the winner of its auction to set up a transmission system to integrate power from 7,500 MW of renewable energy projects in Lakadia Renewable Energy Zone in Gujarat-Phase II.

The Central Electricity Regulatory Commission approved tariffs for Solar Energy Corporation of India’s 1,200 MW interstate transmission system (ISTS)-connected solar-plus-storage project. The tariff adoption advances one of the country’s large solar projects integrated with energy storage.

The Maharashtra government clarified that new renewable energy projects with a capacity or connectivity above 100 kW must install energy storage systems. The clarification provides greater certainty over the state’s storage requirements as renewable installations expand.

MNRE added 1,397 MW of solar cell manufacturing capacity under the ALMM List-II, taking the cumulative enlisted capacity to 36,865 MW. The latest revision includes a new 1,297 MW TOPCon solar cell manufacturing facility of Jupiter Solartech in Himachal Pradesh. RenewSys India also added 100 MW of TOPCon capacity, taking its enlisted capacity from 452 MW to 552 MW.

The Central Transmission Utility of India issued a procedure allowing BESS projects with existing connectivity to increase their storage duration without seeking additional grid connectivity. The change could enable developers to expand storage capacity at existing projects more easily.

The Central Electricity Regulatory Commission proposed congestion charges and new commissioning provisions for energy storage projects as part of amendments to the Indian Electricity Grid Code.

The Ministry of Power has authorized POWERGRID to lay an overhead transmission line for the integration of additional renewable energy potential at Davanagere and Bellary in Karnataka.

SJVN has announced the winners of the auction to procure power from 600 MW of ISTS-connected wind power projects (Phase-IV). The tender was floated in September last year.

The Gujarat Electricity Regulatory Commission increased the additional surcharge payable by open access consumers by around 30.3% to ₹0.99 (~$0.0103)/kWh for the period from October 1, 2026, to March 31, 2027.