Q1 2025 INDIA SOLAR MARKET UPDATE - 6.7 GW INSTALLED IN Q1 2025

India installed 6.7 gigawatts (GW) of solar capacity in the first quarter (Q1) of 2025. Solar capacity additions decreased year-over-year (YoY) by 25% compared to the 9 GW installed in Q1 2024, according to Mercom India’s Q1 2025 India Solar Market Update Report.

Solar installations were down 14% compared to nearly 7.8 GW added in Q4 2024.

In Q1, India installed 5.5 GW of large-scale solar capacity, with open access projects accounting for 19.8% of the total. Installations declined 15% quarter-over-quarter (QoQ) and 36% YoY. Several projects slated for Q1 commissioning were postponed due to factors such as insufficient substation capacity and transmission infrastructure, land acquisition challenges, and delays in PPA signings. Additionally, a significant shortage of domestically manufactured modules, combined with elevated prices, created procurement hurdles for developers.

In Q1 2025, India added 12.3 GW of new power capacity, with solar power accounting for 54% of the capacity additions.

Rajasthan and Gujarat led the large-scale solar installations in the quarter, accounting for 35%, and 30% of the capacity installations. Maharashtra ranked third, with 16%.

As of March 2025, India’s cumulative installed solar capacity stood at 104.6 GW. Solar energy accounted for 22% of India’s total installed power capacity and 48% of the total installed renewable energy capacity.

Large-scale solar projects contributed over 86% and rooftop solar nearly 14% to the cumulative installed solar capacity.

At the end of Q1 2025, Rajasthan had the highest cumulative installed large-scale solar capacity, accounting for 29% of the country’s total installations. Gujarat and Karnataka followed with 17% and 13% respectively.

India’s large-scale solar project pipeline stood at 180.4 GW, with another 127.8 GW of projects tendered and pending auction at the end of Q1 2025.

The average cost of large-scale solar projects increased by 3% QoQ and 1% YoY.

Tenders totaling 14.4 GW were announced during the quarter, down 53% YoY and up 5% QoQ. In Q1 2025, 6.4 GW of solar projects were auctioned, down 39% QoQ and 74% YoY.

Key Highlights from Mercom India Research’s Q1 2025 India Solar Market Update:

• India added 6.7 GW of solar capacity in Q1 2025, a decrease of 25% YoY
• Large-scale solar accounted for 82% of the installations, and rooftop solar 18%
• Solar accounted for 54% of new power capacity additions in Q1 2025
• Rajasthan, Gujarat, and Maharashtra led large-scale solar installations during the quarter
• In Q1 2025, 14.4 GW of large-scale solar projects were tendered, down 53% YoY
• Large-scale solar projects totaling 6.4 GW were auctioned in Q1 2025, a 74% drop YoY

Contact Mercom for pricing: reports@mercomindia.com or call us at +91-080-41211148 or +91-080-23560436.