India Adds 7 GW of Solar Capacity in Q1 2025, Down 25% YoY

Image: Mercom India

In Q1 2025, India's solar capacity additions reached 6.7 GW, reflecting a 25% year-on-year decrease from 9 GW during Q1 2024 and a 14% quarter-on-quarter decline compared to 7.8 GW in Q4 2024.

Of the total capacity added, 5.5 GW came from large-scale solar projects. However, large-scale solar installations dropped 15% quarter-over-quarter(QoQ) and 36% YoY.

Multiple challenges contributed to the slower additions, including the rising cost of domestically manufactured modules, limited availability of domestic content requirement (DCR) modules, and the lack of sufficient substation and transmission infrastructure for power evacuation.

As of March 2025, India's cumulative installed solar capacity had reached104.6 GW. Solar energy represented 22% of the country's total installed power capacity and 48% of its total installed renewable energy

Large-scale solar projects comprised over 86% of this total, while rooftop solar installations accounted for approximately 14%.

Rajasthan remained the leading state in cumulative large-scale solar capacity, with 29% of the national total. Gujarat and Karnataka followed comprising 17% and 13%, respectively.

Source: Mercom India