Solar continued to dominate India’s renewable energy capacity additions in the third quarter (Q3) of 2026. India’s installed solar capacity reached 174.8 GW, representing 31.1% of the country’s total power capacity and 57.7% of its renewable energy mix. This marked an increase of 6.7% quarter-over-quarter (QoQ) and 39.7% year-over-year (YoY).

India added nearly 1.8 GW of wind power capacity in Q3 of calendar year 2026, up 30% QoQ from Q2 2026 and 21% YoY from Q3 2025, according to Mercom India Research.

The widening price gap between domestic content requirement (DCR) and non-DCR solar modules is raising rooftop solar installation costs, lengthening consumer payback periods, and raising concerns about project viability.

The Reserve Bank of India’s 25-basis-point increase in the repo rate to 5.5% could raise borrowing costs for renewable energy developers and manufacturers, potentially affecting project returns, financing decisions, and capacity expansion plans.

India’s solar operations and maintenance segment is moving beyond routine equipment servicing as developers and asset owners place greater emphasis on long-term generation performance, equipment availability, and operational reliability.

The Ministry of New and Renewable Energy added 7,063 MW of solar cell manufacturing capacity to the Approved List of Models and Manufacturers List-II, taking the total enlisted capacity to 44.9 GW.

India’s operational battery energy storage manufacturing capacity is heavily concentrated in downstream manufacturing, which accounts for 92% of the total, while cell manufacturing represents just 8%, according to Mercom India’s recently released Energy Storage Manufacturing Ecosystem Report.

The Union Cabinet has earmarked ₹60 billion (~$631.11 million) for viability gap funding to support the deployment of 50 GWh of battery energy storage systems (BESS) under the Green Energy Corridor Phase-III (GEC-III) program.

The Tamil Nadu government introduced the Battery Energy Storage Systems Policy, 2026, mandating battery storage for new solar and wind-solar hybrid projects of 1 MW and above. New solar and hybrid projects must install battery storage capacity equivalent to at least 10% of the installed solar capacity, with a discharge duration of four hours.

The Central Transmission Utility of India set a minimum discharge duration of four hours for specific battery energy storage system connectivity applications and two hours for eligible applications under the right of first refusal category.

The Ministry of Finance clarified that stationary, grid-scale, and industrial lithium-ion BESS are eligible for the concessional basic customs duty (BCD) rate of 10%. Addressing inconsistencies in their classification by customs authorities, the Ministry’s Department of Revenue clarified that these battery storage systems do not fall under the definition of power banks, which attract a higher BCD of 20%.

The Central Electricity Authority revised its Manual on Transmission Planning Criteria to include provisions for ultra-high-voltage alternating current transmission systems and updated modeling requirements for renewable energy projects, BESS, and high-voltage direct current infrastructure.

India’s transmission infrastructure comprised approximately 509,603 circuit kilometers of transmission lines and 1,478 gigavolt-amperes of transformation capacity as of June 2026, according to Mercom India Research’s State of Transmission Infrastructure in India report.

India’s renewable energy policies increasingly focused on improving project execution, grid stability, transmission connectivity, and reliable power delivery during Q3 of 2026, according to Mercom India’s Q3 2026 Renewable Energy Policy Impact Report.

The Karnataka Electricity Regulatory Commission (KERC) proposed increasing the state’s Renewable Purchase Obligation to 43.33% by FY 2030, from 35.95% in FY 2027. The draft regulations, titled KERC (Procurement of Energy from Renewable Sources) Regulations, 2026, prescribe renewable energy consumption targets for distribution licensees, open access consumers, and captive power users.

The Kerala State Electricity Regulatory Commission notified the Multi-Year Tariff Regulations, 2026, introducing a tariff framework for BESS, pumped storage projects, and electricity generation, transmission, and distribution businesses.

The Telangana Electricity Regulatory Commission approved the procurement of 2,545 MW of solar power by the state’s distribution companies from NTPC, NHPC, and the Solar Energy Corporation of India.

The Gujarat government announced an additional state subsidy for residential consumers installing rooftop solar systems up to 2.18 kW under the PM Surya Ghar: Muft Bijli Yojana. Under the new subsidy arrangement, residential consumers belonging to Scheduled Caste and Scheduled Tribe categories will have to contribute 5% of the benchmark installation cost, while consumers in other categories will contribute 10%.

The United States International Trade Commission ruled that imports of crystalline silicon photovoltaic cells, whether assembled into modules or not, from India, Indonesia, and Laos materially injured the domestic solar manufacturing industry.

The U.S. Department of Commerce’s imposition of antidumping and countervailing duties (AD/CVD) on Indian solar cells could significantly affect India’s solar exports, potentially redirecting shipments to the domestic market, intensifying price competition, and forcing manufacturers to reassess expansion plans.