New data from market research firm Mercom reveals that India installed a record 15.3GW of solar capacity in the first quarter (Q1) of 2026, marking the highest quarterly solar additions in the country’s history.
The quarterly solar capacity rose 143% year-on-year from 6.3GW in Q1 2025 and 49% quarter-on-quarter from 10.3GW in Q4 2025. Mercom attributed the surge to developers accelerating project commissioning ahead of upcoming policy changes and Inter-State Transmission System (ISTS) waiver reductions.
Large-scale solar projects dominated the additions, contributing 12.6GW (82% of the total) during the quarter. This segment saw a 55% quarter-on-quarter and 147% year-on-year growth, with open access projects accounting for 21% of utility-scale installations.
The upcoming implementation of the Approved List of Models and Manufacturers (ALMM) List-II in June 2026, along with increased deployment under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, further drove the activity.
India added 19.9GW of total power capacity in Q1 2026, with solar accounting for 77% of all new additions. As of March 2026, the country’s cumulative installed solar capacity reached 152GW, including utility-scale (85%) and rooftop (15%) systems. Solar energy now makes up 28% of India’s total installed power capacity and 55% of its renewable energy capacity.
In terms of regional performance, Rajasthan remained the leading state for cumulative utility-scale solar installations (32% of the national total), followed by Gujarat (21%) and Karnataka (11%). For Q1 2026 specifically, Gujarat and Rajasthan led quarterly utility-scale additions with 40% and 39% respectively, while Maharashtra ranked third with 6%.
Mercom also noted that the average cost of utility-scale solar projects using TOPCon DCR modules fell nearly 1% quarter-on-quarter but rose 6% year-on-year. Solar tender activity reached 3GW in the quarter (up 100% quarter-on-quarter but down 68% year-on-year), and 4GW of solar projects were auctioned (down 47% quarter-on-quarter and 64% year-on-year).
