Q2 2025 INDIA SOLAR MARKET UPDATE - 11.3 GW INSTALLED IN Q2 2025
India installed around 11.3 gigawatts (GW) of solar capacity in the second quarter (Q2) of calendar year (CY) 2025. Solar capacity additions increased more than 145% year-over-year (YoY) compared to over 4.6 GW installed in Q2 2024, according to the Q2 2025 India Solar Market Update Report by Mercom India Research.
Solar capacity additions were up nearly 67% compared to nearly 6.8 GW of installation in Q1 2025.
In 1H 2025, solar projects totaling 18 GW were installed, up 31 % compared to 1H 2024. Large-scale solar capacity additions rose 20% YoY during 1H 2025, compared to 12.6 GW in 1H 2024. Rajasthan, Gujarat, and Maharashtra led in terms of large-scale solar capacity additions for the quarter, accounting for 33.7%, 27%, and 17.4% of installations, respectively.
India’s cumulative installed solar capacity, including rooftop solar, reached 116.4 GW as of June 2025. Large-scale projects accounted for nearly 86 percent of this total, while rooftop solar contributed approximately 14 percent.
Rajasthan and Gujarat led the cumulative large-scale solar installations, accounting for 29% and 18% of the capacity. Karnataka ranked third, with 13%.
In Q2 2025, solar project commissioning in India accelerated due to regulatory deadlines. Developers aimed for partial commissioning before June 2025 to secure the 100% ISTS charge waiver, supported by rising DISCOM demand for round-the-clock renewables.
The country’s utility-scale project development pipeline stood at over 191 GW as of June 2025, with an additional 131 GW of tendered and pending auction.
In Q2 2025, solar power accounted for 64% of the total new power capacity additions.
In 1H 2025, multiple central and state agencies issued 20.6 GW of tenders, recording a sharp decline of 58.2% YoY. The auctioned capacity in 1H 2025 stood at 8.1 GW, down 74% from 31.8 GW in 1H 2024.
Key Highlights from Mercom India Research’s Q1 2024 India Solar Market Update:
- India added 11.3 GW of solar capacity in Q2 2025, an increase of 66.9% QoQ
- Solar accounted for 64% of new power capacity additions in Q2 2025
- In 1H 2025, solar projects totaling 18 GW were commissioned, up 31% YoY
- India’s cumulative installed solar capacity stood at 116.4 GW as of June 2025
- India’s large-scale solar project pipeline stood at almost 191 GW, with another over 131 GW of projects tendered and pending auction
- Tender announcements in Q2 fell 65.2% QoQ and 21.6% YoY, while auction announcements fell 74.1% QoQ and 75.2% YoY
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MERCOM INDIA RESEARCH
Mercom India Research is a leading research and consulting firm at the forefront of India’s clean energy transformation delivering timely, relevant market intelligence and advisory for India’s energy markets.
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