India added a record 27 GW of solar capacity in the first half (1H) of the calendar year (CY) 2026, up 51% compared to 18 GW in 1H 2025, according to the Q2 and 1H 2026 India Solar Market Update Report by Mercom India Research.

Solar accounted for 76% of the 36 GW of new power capacity added during 1H 2026.

Commissioning activity remained strong in 1H 2026, driven by rising clean energy demand and developers accelerating project completion ahead of key policy changes. Many developers moved projects forward before the June 1 implementation of ALMM List-II for solar cells and the scheduled reduction in the ISTS charge waiver from 75% to 50% in July 2026.

India added 11.7 GW of solar capacity in the second quarter (Q2) of 2026, making it the second-highest quarterly addition on record after 15.3 GW were installed in Q1 2026. However, installations declined 24% quarter-over-quarter (QoQ)  and was up 1% compared to 11.3 GW in Q2 2025.

Gujarat, Rajasthan, and Maharashtra were the leading states for utility-scale solar installations during Q2 2026, accounting for 40%, 19%, and 17% of installations, respectively.

Large-scale solar installations totaled 7.9 GW, down 37% QoQ compared to 12.6 GW in Q1 2026 and down 23% year-over-year (YoY) compared to 10.2 GW in Q2 2025. Large-scale projects accounted for 68% of all solar installations during the quarter.

As of June 2026, India’s cumulative installed solar capacity reached 164.8 GW. Large-scale solar projects represented 83% of the installed capacity, while rooftop solar accounted for the remaining 17%. Solar photovoltaic (PV) comprised 30% to India’s total installed power capacity and 57% of installed renewable energy capacity.

Rajasthan, Gujarat, and Karnataka continued to lead the country in cumulative utility-scale solar capacity, accounting for 31%, 22%, and 11% of total installations, respectively.

In 1H 2026, 11 GW of large-scale solar tenders were announced, down 54% compared to 24 GW in the corresponding period of 2025. Large-scale solar auctions totaled 5.4 GW during the first half of the year, a 59% decline compared to 13.2 GW in 1H 2025.

In Q2 2026, agencies issued 5.4 GW of utility-scale solar tenders, down 6% QoQ and 22% YoY. Auctions totaled 1.6 GW, a decline of 56% QoQ and 40% YoY, as the market prioritized executing previously awarded projects over issuing new tenders.

Future installations will increasingly depend on the timely execution of power purchase agreements (PPAs) and power sale agreements (PSAs), transmission readiness, land and grid connectivity approvals, equipment availability, and the commercial viability of projects awarded under earlier cost assumptions.

The report also provides installation trends by state, project pipeline analysis, tender and auction activity, and market forecasts to help developers, manufacturers, investors, and other industry participants assess emerging opportunities and execution risks.

Key Highlights from Mercom India Research’s Q2 & 1H 2026 India Solar Market Update:

• India installed 27 GW of solar capacity in 1H 2026, up 51% YoY
• 11.7 GW of solar capacity was installed in Q2 2026, the second-highest quarterly addition on record
• Solar accounted for 76% of the 35.8 GW of new power capacity added during 1H 2026
• India’s cumulative installed solar capacity reached 164.8 GW, representing 30% of total installed power capacity
• The top 10 states accounted for 98% of large-scale solar installations in Q2 2026

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