India Adds Record 44.61 GW Solar Capacity in FY2026

08 Jun 2026 CW Team

India’s solar sector reached a milestone in FY2026, with cumulative installed capacity crossing 150 GW and annual additions hitting a record 44.61 GW, exceeding the government target of 34 GW and nearly doubling FY2025’s 23.83 GW. Distributed Renewable Energy contributed 16.3 GW, while PPA and C&I segments accounted for 34 per cent and 30 per cent, respectively.

India has risen from 9th globally in 2015 to 3rd in cumulative solar capacity by 2025 and is set to become the world’s second-largest solar market in annual installations in 2026. Seven states, led by Rajasthan and Gujarat, account for roughly 85% of installed capacity, with Maharashtra and Karnataka showing rapid growth.

Manufacturing capacity reached 210 GW for modules and over 9 GW for cells, though utilisation fell to 40% amid older MonoPERC technology transitioning to TOPCon. Exports dropped from USD 1.97 billion in FY2024 to USD 1.12 billion in FY2025, primarily due to US tariffs exceeding 200 per cent, while imports surged to USD 2.72 billion as domestic sourcing rules were phased in.

Investor confidence remains strong, with USD 2.37 billion FDI in 2025, representing 76 per cent of non-conventional energy inflows. Government initiatives including PM Surya Ghar: Muft Bijli Yojana, the PLI scheme for solar modules, and ALMM List-III are driving capacity expansion and domestic manufacturing integration.

Rubix Data Sciences highlights that while India’s solar achievements are historic, the sector faces challenges including low utilisation, technology transitions, and export dependency. Achieving the 500 GW non-fossil fuel target by 2030 will require consistent 50 GW annual additions, upstream integration, diversified markets, and scaling rooftop solar into a self-sustaining programme.

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