India achieved its highest-ever quarterly solar capacity addition in Q1 2026, installing 15.3 GW of new solar power capacity, according to Mercom India Research. The surge was led by utility-scale projects, policy-driven commissioning activity, and accelerating renewable energy investments.
India installed a record 15.3 GW of new solar capacity during the first quarter of 2026, marking the highest quarterly solar addition in the country’s history, according to a new report released by Mercom India Research.The report stated that solar installations increased 143% compared to the 6.3 GW installed during the same quarter last year. Installations also rose significantly from the previous quarter, when the country added 10.3 GW between October and December 2025.
Large-scale solar projects accounted for 12.6 GW, representing nearly 82% of the total installations during the quarter. Open access projects contributed around 21% of these utility-scale additions.
India added a total of 19.9 GW of new power generation capacity during the quarter, with solar contributing 77% of the overall additions. By March 2026, the country’s cumulative installed solar capacity had reached 152 GW. Utility-scale projects accounted for 85% of the total installed capacity, while rooftop solar represented the remaining 15%.
Solar power now contributes 28% of India’s total installed power generation capacity and 55% of its total renewable energy capacity. Rajasthan continued to dominate the utility-scale solar market with a 32% share, followed by Gujarat at 21% and Karnataka at 11%.
The report noted that Gujarat and Rajasthan together contributed nearly four-fifths of all new large-scale solar installations during the quarter. It also highlighted that the average project cost for utility-scale installations using TOPCon DCR modules declined slightly from the previous quarter, although costs remained higher than levels recorded a year earlier.
According to Mercom, the record pace of project commissioning was largely driven by upcoming policy deadlines and improved transmission readiness in key renewable energy markets. Developers accelerated project execution ahead of the implementation of the Approved List of Models and Manufacturers (ALMM) List II from June 2026, amid concerns over constrained domestic solar cell supply and rising module prices.
Installation activity also received support from improved implementation under the PM KUSUM scheme, which promotes solar deployment in rural and agricultural sectors. In addition, developers expedited open access projects ahead of the next phase of reductions in the Inter-State Transmission System (ISTS) waiver.
Raj Prabhu, Chief Executive Officer of Mercom Capital Group, said that while project execution remains robust, transmission infrastructure and power evacuation systems are struggling to keep pace with the rapid expansion of renewable energy capacity. He added that as renewable penetration increases, challenges related to curtailment, grid flexibility, and storage integration will become increasingly critical for sustaining future growth.