India Installs Record 45 GW Solar Capacity in FY2026
⚡ Quick Read
- What happened: India installed 44.6 GW of solar and 6 GW of wind capacity in FY2026, pushing total renewable energy capacity to 275 GW.
- Why it matters: The surge reflects a 106% increase in ground-mounted solar and significant residential growth, signaling massive demand for EPC services and supply chain scaling.
- Watch: Future capacity additions as the industry navigates post-ISTS waiver project timelines and the continued momentum of the PM Surya Ghar scheme.
Background and Context
The Indian renewable energy landscape witnessed a transformative year in FY2026, with solar energy cementing its position as the primary driver of the nation’s energy transition. According to a recent report by JMK Research, India successfully installed approximately 44.6 GW of solar capacity and 6 GW of wind capacity during the fiscal year. This performance represents an 87.2% increase in solar installations compared to the previous year, bringing India’s total installed renewable energy capacity to a landmark 275 GW as of March 31, 2026.
Key Details
Solar energy now accounts for 55% of India’s total renewable energy portfolio, totaling 150.26 GW. The ground-mounted solar segment was the standout performer, adding 34.8 GW—a 106% year-on-year increase. This growth was largely fueled by projects initiated under the Ministry of New and Renewable Energy’s (MNRE) 50 GW annual bidding trajectory and the urgency to meet the June 30, 2025, ISTS waiver deadline. Furthermore, the rooftop solar segment saw 8.7 GW of new installations, a 69% increase driven by the PM Surya Ghar scheme, which has already covered over 26 lakh households with ₹14,771 crore in disbursed financial assistance.
Geographically, Rajasthan led large-scale solar additions with 12,140 MW (35%), followed by Gujarat (8,952 MW) and Maharashtra (6,177 MW). Maharashtra emerged as the leader in rooftop solar (2,144 MW) and off-grid solar capacity (614 MW).
What This Means for EPCs and Developers
For EPC contractors and solar developers, these figures underscore a period of unprecedented execution intensity. The rapid commissioning of ground-mounted projects highlights the necessity for robust supply chain management and efficient project management capabilities. Developers who successfully leveraged the ISTS waiver deadline have set a benchmark for project delivery. The sustained growth in the C&I open-access segment and residential rooftop markets offers diversified revenue streams for firms capable of managing smaller, distributed assets alongside utility-scale solar parks.
What Happens Next
As the India renewable energy sector moves forward, the focus will shift toward sustaining this growth trajectory without the immediate pressure of the ISTS waiver deadline. Developers must now optimize for grid integration and long-term asset performance. The continued success of the PM Surya Ghar scheme suggests that the residential sector will remain a critical growth pillar, while utility-scale developers will likely look toward hybrid projects and storage integration to maintain competitive tariffs in an increasingly crowded market.
