Solar PV drove renewable energy capacity additions in India with a record 44.6 GW, representing 87.2% YoY growth, says MNRE
Distributed solar surged, with 16.31 GW added last fiscal, led by the PMSGMBY scheme
Wind installations rose 45.6% to 6.05 GW, supporting overall clean capacity growth
India added a record 55.3 GW of non-fossil fuel capacity in FY 2026 (April 2025 to March 2026), driven by a record 44.6 GW of solar PV capacity expansion. Annual solar capacity additions expanded by 87.2% over the previous year’s 23.83 GW and exceeded the targeted 24 GW. Wind installations increased by 45.6% with 6.05 GW.
Open access commercial and industrial (C&I) projects, including those for captive consumption, also pushed annual installations to a record high. The waiver of the inter-state transmission system (ISTS) deadline on June 30, 2025, was another responsible factor, adds JMK Research & Analytics.
The market intelligence firm adds that ground-mounted PV additions during the last fiscal year improved by 106% to around 34.8 GW, thanks to the completion of projects tendered under the Ministry of New and Renewable Energy’s (MNRE) 50 GW annual bidding trajectory, which started in 2023 (see India Releases Bidding Trajectory For RE).
Distributed generation continues to expand under supportive policy frameworks. Close to 8.7 GW of rooftop solar capacity contributed to the annual total, along with 7.6 GW under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY) scheme. In comparison, 3.66 GW was installed under PM KUSUM in FY 2024-25. The scheme has now been extended till March 31, 2027.
A total of 16.31 GW of distributed solar installations recorded last fiscal is the largest annual addition in this segment to date. Rooftop solar accounted for almost 36% of the total installed capacity during the reporting year, says the ministry.
MNRE data shows that India’s cumulative installed solar PV capacity at the end of March 2026 reached 150.26 GW – the leading contributor to non-fossil-fuel generation of 283.46 GW (including 274.68 GW of renewable energy). By 2030, the target is to expand the latter to 500 GW.
Having achieved 50% of its non-fossil-fuel-based power capacity target for 2030 5 years ahead of schedule, India has now raised the target to 60% by 2035 under its Nationally Determined Contribution (see India Raises Non-Fossil Power Capacity Target To 60% By 2035).
Yet, coal continues to be the primary source of electricity generation in the country, with a 67.7% share up to March 2026, followed by solar at 9.4%. Coal will continue to lead the generation mix even in FY 2035-36 (see CEA: Solar Set To Become India’s Largest Power Source By 2035-36).
Going forward, JMK Research projects the country will add around 53 GW to 55 GW of solar and wind capacity in FY 2027.
India’s cumulative solar PV module manufacturing capacity also expanded from 2.3 GW in 2014 to about 172 GW as of March 31, 2026, according to the ministry, with 8 out of the 12 Production Linked Incentive (PLI) winners having launched production in the value chain. Of this, 98 GW was added during the reporting year, compared to 74 GW in the previous year.
India’s solar module imports decreased by 3 times from $2.15 billion in FY 2025 to $758 million by January 2026.
The country is also boosting battery energy storage system (BESS) additions, as the ministry extended the Basic Customs Duty (BCD) exemption for lithium-ion cell manufacturing to March 31, 2028. It aims to reduce India’s reliance on imported battery packs, primarily from China. The government is also backing an Indian Institute of Technology Roorkee project to develop sodium-ion battery technology as a cost-effective alternative to lithium-based storage systems.