India added 3 GW of solar open access capacity in the second quarter (Q2) of 2026, the highest quarterly addition on record and an increase of 10% quarter-over-quarter (QoQ) and 0.2% year-over-year (YoY), according to the Q2 & 1H 2026 Mercom India Solar Open Access Market report.

In the first half (1H) of calendar year (CY) 2026, solar open access installations reached nearly 6 gigawatts (GW), up 42% year-over-year (YoY) compared to 4 GW in 1H 2025.

Installation activity during the first half was influenced by a combination of regulatory deadlines and changing market conditions. Developers accelerated procurement and commissioning ahead of the phased reduction in Inter-State Transmission System (ISTS) charges waiver and the enforcement of sourcing requirements under the Approved List of Models and Manufacturers (ALMM) List-II. Although the ALMM List-II requirements for open access projects were later deferred until the end of 2026, the relief came only after the original deadline had passed, by which time many developers had already advanced procurement and commissioning schedules.

As of June 2026, cumulative installed solar open access capacity stood at 36 GW. Karnataka remained the leading state with a 21% share, followed by Rajasthan and Maharashtra at 16% each. Together, the top five states accounted for 77% of cumulative capacity, reflecting the market’s continued concentration in states with strong industrial demand and established open access frameworks.

Despite the concentration of operating capacity, the development pipeline remains substantial. Rajasthan had the largest pipeline, followed closely by Maharashtra and Karnataka.

In the first two months of 2026, Karnataka emerged as the leading seller in the Green Day-Ahead Market (G-DAM), accounting for 35% of electricity sold. Punjab was the leading procurer from G-DAM, followed by Damodar Valley Corporation and Gujarat.

The volume traded in the Green Term-Ahead Market (G-TAM) on IEX was 67.2 MU in these two months.

The cleared volume of Renewable Energy Certificates (RECs) traded on the Indian Energy Exchange (IEX) declined by 86% compared to Q1 2026. The sharp fall in REC trading followed elevated activity in Q1, when obligated entities stepped up purchases ahead of the financial year-end to meet Renewable Purchase Obligation requirements.

The report tracks how these market and regulatory shifts are affecting project economics across 13 major states, with state-level analysis of retail tariffs, PPA prices, open access charges, installed capacity, and the development pipeline.

Key Highlights from Mercom’s Q2 & 1H 2026 India Solar Open Access Market Report

• In Q2 2026, 3 GW of solar open access was added, an increase of 10% QoQ and 0.2% YoY
• Rajasthan was the leading state, accounting for 25% of solar capacity additions in Q2 2026
• The top five states accounted for 91% of the country’s total installations
• As of June 2026, cumulative installed solar open access capacity stood at 36 GW
• RECs traded in Q2 on IEX declined 86% QoQ

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