India installed a record 15.3 GW of new solar capacity in the first quarter of 2026 (January–March), the highest quarterly addition in the country's history, according to a report by Mercom India Research. The surge represents a 143 per cent year-on-year jump from the 6.3 GW added in the same period of 2025, and a significant step-up from the 10.3 GW commissioned in the preceding October–December 2025 quarter.

Scale of Installations

Large-scale solar projects dominated the quarter, contributing 12.6 GW — nearly 82 per cent of total additions. Within that segment, open access projects accounted for 21 per cent of large-scale capacity additions. Solar's share of India's overall power generation capacity added during the quarter stood at 77 per cent, with the country commissioning 19.9 GW of total generation capacity in the three-month period.

India's Cumulative Solar Position

As of March 2026, India's cumulative installed solar capacity reached 152 GW. Large-scale projects account for 85 per cent of this base, while rooftop solar contributes the remaining 15 per cent. Solar energy now represents 28 per cent of India's total installed power capacity and 55 per cent of its installed renewable energy capacity — a milestone that underscores the technology's growing dominance in the country's energy mix.

State-Level Leaders

Rajasthan retained its position as the largest large-scale solar market, holding 32 per cent of cumulative installed capacity, followed by Gujarat at 21 per cent and Karnataka at 11 per cent. During the quarter, Gujarat and Rajasthan together accounted for nearly four-fifths of new large-scale installations, reflecting the continued concentration of utility-scale solar in the country's western belt.

What Drove the Record Quarter

According to the Mercom report, the record commissioning activity was driven by a combination of approaching policy deadlines and improved transmission readiness in key solar markets. A primary catalyst was the impending rollout of the Approved List of Models and Manufacturers (ALMM) List-II from June 2026, which prompted developers to fast-track project commissioning under the existing procurement framework amid concerns over limited domestic cell availability and rising module procurement costs.

Installations were also supported by stronger execution under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme — the government's solar programme targeting farmers and rural communities — and accelerated commissioning of open access projects ahead of the next phase of Inter-State Transmission System (ISTS) waiver reductions. The average cost of large-scale solar projects using TOPCon DCR modules declined marginally on a quarterly basis, though costs remained higher compared to a year earlier.

Grid Infrastructure: The Critical Bottleneck

'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,' said Raj Prabhu, CEO of Mercom Capital Group. This comes amid a broader national push to reach 500 GW of non-fossil fuel capacity by 2030 — a target that will require not just record installations but equally record-pace grid upgrades.