India installed 15.3 GW of solar capacity in Q1 2026, its highest-ever quarterly total, according to Mercom India’s Q1 2026 India Solar Market Update Report.

Additions rose more than 143% year-over-year (YoY) from 6.3 GW in Q1 2025, and nearly 49% quarter-over-quarter (QoQ) from about 10.3 GW in Q4 2025.

Large-scale solar accounted for most of the growth. India added 12.6 GW of large-scale capacity during the quarter, representing more than 82% of total additions. Open access projects made up 21% of the large-scale total. Large-scale installations increased 55% from the previous quarter and 147% from the same period last year.

Record commissioning activity was driven by approaching policy deadlines and improved transmission readiness in key solar states. Developers accelerated project completions ahead of the ALMM List-II implementation scheduled for June 2026, amid concerns over limited domestic DCR cell availability and rising module procurement costs.

“India’s solar sector recorded its strongest quarter ever in Q1 2026, driven by accelerated project execution ahead of the June ALMM-II deadline and the reduction in ISTS charge-waiver benefits. However, transmission bottlenecks could still play the spoiler in what is expected to be a record year for solar installations. While project execution and commissioning activity remain strong, transmission readiness and evacuation infrastructure are struggling to keep pace with the rapid growth in renewable capacity. As renewable penetration increases, curtailment, grid flexibility, and storage integration are becoming critical to sustaining future growth,” commented Raj Prabhu, CEO of Mercom Capital Group.

Execution under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program also strengthened, particularly in western states. Open access projects added further momentum as developers moved to commission capacity before the next phase of inter-state transmission system (ISTS) charges waiver reductions.

“MNRE has often waited until close to the deadline before giving clarity on extensions, and the market is now working with the assumption that the ALMM List-II deadline may not be extended. Module manufacturers and developers are expected to push for some relief, either on a project-by-project basis or through a short extension, because domestic cell manufacturing capacity is still limited,” said Priya Sanjay, Managing Director, Mercom India.

Gujarat and Rajasthan led large-scale solar installations in Q1 2026, accounting for approximately 40% and 39% of additions, respectively. Maharashtra ranked third with a 6% share.

As of March 2026, India’s cumulative installed solar capacity, including large-scale and rooftop systems, exceeded 152 GW. Solar accounted for 28% of India’s total installed power capacity and 55% of its total installed renewable energy capacity.

Large-scale projects made up nearly 85% of India’s cumulative installed solar capacity, while rooftop solar accounted for more than 15%.

Rajasthan had the highest cumulative installed large-scale solar capacity, representing about 32% of the national total. Gujarat followed with more than 21%, while Karnataka accounted for over 11%.

The average cost of large-scale solar projects using TOPCon DCR modules declined nearly 1% QoQ but rose 6% YoY.

Tender activity reached about 3 GW during the quarter, doubling from the previous quarter but falling 68% YoY. About 4 GW of solar projects were auctioned in Q1 2026, down 47% QoQ and 64% YoY.

“With uncertainty around ALMM and the timing of PPA signing, developers are cautious about bidding because they may not know which compliance conditions will apply when projects move forward,” Sanjay said.

“Land and transmission challenges will grow with every passing month. Developers are already seeing fewer contiguous land parcels suitable for solar, and land prices are rising as farmers become more aware of upcoming solar development,” she said.

Mercom’s Q1 2026 India Solar Market Update report is 113 pages long and covers all facets of India’s solar market. For the complete report, visit:  https://www.mercomindia.com/product/q1-2026-india-solar-market-update