India’s solar open access market recorded 55% QoQ growth in Q1 2026, adding 2.7 GW, supported by favorable regulatory developments, proactive state-level policies, growing consumer awareness, and improved project execution across key markets.

India added 4.6 GWh of battery energy storage capacity in Q1 2026, a 941% increase from 442.7 MWh added in Q4 2025, according to Mercom India Research’s Q1 2026 India’s Energy Storage Landscape Report. The country’s cumulative installed battery energy storage capacity reached 5.9 GWh as of March 2026.

India imported solar cells and modules worth over $1.27 billion (~₹116 billion) in Q1 2026, a 2.8% year-over-year (YoY) decline from $1.3 billion (~₹112.9 billion) in Q1 2025, according to data from the Department of Commerce. On a quarter-over-quarter basis, combined module and cell imports increased by 14.3% from over $1.11 billion (~₹98.8 billion). Solar module imports rose 81.2%, while cell imports declined 1.9% from the previous quarter.

The Ministry of New and Renewable Energy’s (MNRE) decision not to grant a blanket extension of the Approved List of Models and Manufacturers List-II deadline beyond June 1, 2026, reinforced regulatory certainty for India’s solar manufacturing ecosystem. However, it has also raised concerns among developers and engineering, procurement, and construction contractors who fear near-term project delays and cost pressures.

The average system cost of large-scale solar projects showed mixed trends across module technologies during Q1 2026, with Chinese module-based projects recording cost increases, while several Indian and DCR-based configurations remained stable or declined marginally. System costs increased across all Chinese module technologies in Q1 2026.

Recent extreme weather events in Rajasthan and other parts of the country have raised concerns about the structural durability of rooftop solar installations, with industry experts citing aluminum frames used in solar modules as a key vulnerability. During high winds and storms, several solar modules have reportedly been bent, torn, or detached.

Rajasthan emerged as the leading state for solar open access installations in the first quarter (Q1) of 2026. The state commissioned over 1 GW of solar open access capacity during the quarter, accounting for 39% of India’s newly added open access capacity, according to Mercom’s Q1 2026 India Solar Open Access Market Report.

The Central Electricity Regulatory Commission’s proposed framework for milestone extension charges could bring greater discipline to the General Network Access regime. However, renewable energy developers say the final framework must distinguish between developer-driven delays and those resulting from transmission readiness, power purchase agreement execution, financing, land approvals, and statutory clearances.

Firm and Dispatchable Renewable Energy projects are creating new revenue opportunities for developers by enabling the sale of excess renewable generation. These projects typically combine oversized solar, wind, and battery storage capacities to meet dispatch obligations while ensuring a reliable and continuous supply of renewable power.

India’s large-scale solar project pipeline has crossed a significant milestone, exceeding 200 GW for the first time, according to data from the Mercom India Renewable Energy Project Tracker. The milestone underscores the scale of project development underway across the country and reinforces the view that India’s target of 280 GW of installed solar capacity by 2030 is increasingly within reach.

India’s solar manufacturing sector is bracing for short-term pressure in the cell supply chain, with the MNRE mandating that projects use solar cells from the Approved List of Models and Manufacturers (ALMM) from June 2026. Module manufacturers said that companies without ALMM-listed cell capacity are expected to face constraints in securing compliant cells while they wait for new cell manufacturing facilities to come online over the next few months.

India’s solar manufacturing ecosystem remains heavily skewed toward modules. In 2025, nearly 119 GW of module manufacturing capacity was added, compared to just over 9 GW of solar cell manufacturing capacity, highlighting the need for greater upstream integration.

Maharashtra’s recent rooftop solar policy revisions have fundamentally altered project economics, making the viability of solar-plus-storage systems increasingly dependent on their ability to offset peak-hour tariffs rather than monetize surplus solar generation. Since April 1, 2026, Maharashtra has mandated that rooftop solar projects exceeding 100 kW include storage equal to 50% of the total project capacity.

India’s floating solar market is gaining momentum, with the project pipeline now exceeding 1 GW and cumulative commissioned capacity also approaching the same level, according to data from the Mercom India Renewable Energy Project Tracker dashboard. However, the absence of projects in the pre-construction stage points to limited near-term capacity additions beyond the current pipeline.

India may struggle to meet its 100 GW wind energy target for 2030, with current installed capacity and a modest pipeline falling short of the required pace. According to Mercom India Renewable Energy Project Tracker, the country has a total operational wind energy capacity of over 50 GW. While India’s solar capacity additions have been breaking records, wind energy installations have not kept pace.

The MNRE’s option that allows residential consumers to voluntarily forgo subsidies under the PM Surya Ghar: Muft Bijli Yojana could create a separate market opportunity for larger rooftop solar installations. The “Give It Up” option allows consumers to install rooftop solar systems without claiming Central Financial Assistance.

The implementation of the Approved List of Models and Manufacturers List II mandate for solar cells is causing a TOPCon module supply squeeze, with developers, EPC contractors, and rooftop installers preferring them for their higher efficiency and output. Industry sources say there is an adequate supply of mono PERC cells, but they are not finding takers.

Rooftop solar installations under the PM Surya Ghar: Muft Bijli Yojana have crossed the four million milestone, according to data from MNRE and Mercom India Research. In social media posts, Minister for New and Renewable Energy Pralhad Joshi said India’s solar revolution is becoming a true people’s movement, with states across the nation rapidly embracing rooftop solar through the PM Surya Ghar program.

MNRE directed renewable energy developers to submit requests for exemption from compliance with the Approved List of Models and Manufacturers List-II for solar cells only through the dedicated domestic content requirement portal. The requests must be submitted along with all the supporting documents and evidence.

MNRE asked all manufacturers on the Approved List of Models and Manufacturers to submit monthly price ranges for domestically manufactured solar cells and modules. MNRE said it is essential that prices of domestically manufactured solar modules and cells remain within a fair range and that there is no excessive opportunistic profiteering.

The Ministry of New and Renewable Energy constituted an expert committee to examine applications for time extensions to commission net metering and open access renewable energy projects beyond May 31, 2026, under the Approved List of Models and Manufacturers List II mandate for solar cells. The applications will be examined on a case-by-case basis.

The Ministry of New and Renewable Energy clarified that residential rooftop solar consumers availing net metering under the PM Surya Ghar: Muft Bijli Yojana who choose the ‘Give It Up’ option are exempt from the Approved List of Models and Manufacturers List-II for solar cells only until March 31, 2027. The exemption is subject to such applications being filed through the PM Surya Ghar national portal.

The Central Electricity Authority issued standard implementation timelines for interstate transmission system projects to improve predictability and coordination in transmission development. The timelines were approved by the National Committee on Transmission. The standardized timelines come amid growing concern over delays in transmission infrastructure.

The Ministry of New and Renewable Energy granted a limited exemption from the ALMM (List II) requirement for certain rooftop solar projects. The exemption applies to rooftop solar projects in which 100% of the required solar modules were installed at the project site before June 1, 2026, but could not be commissioned by the distribution company under the net-metering framework before the deadline.

MNRE allowed provisional commissioning of utility, captive, and commercial & industrial solar power projects installed before June 1, 2026, but not commissioned before that date, due to reasons beyond their control.

The Ministry of New and Renewable Energy issued a standard operating procedure to address consumer complaints and violations by registered vendors under the PM Surya Ghar: Muft Bijli Yojana. The program is being implemented nationwide through distribution companies, electricity departments, and state-level implementing agencies.