India installed 27 GW of solar PV capacity in H1 2026, up 49% from 18 GW in H1 2025
Mercom says Q2 2026 additions reached 12 GW, making it India’s second-highest quarterly installation
Strong demand and efforts to complete projects ahead of ALMM List-II and ISTS deadlines supported H1 growth
India added 12 GW of solar PV capacity in Q2 2026, taking total installations for H1 to a record 27 GW, according to Mercom India Research. Installations during the initial six months were 49% higher than the same period last year, reported as 18 GW (see India Adds 18 GW Solar PV Capacity In H1 2025).
Quarterly installations in Q2 2026 recorded India’s second-highest quarterly solar capacity addition at 12 GW despite falling 24% from the 15 GW added in Q1 (see India Adds Record 15.3 GW Solar PV Capacity In Q1 2026). Mercom attributes the drop to limited availability and higher prices of ALMM-compliant domestically produced solar cells.
Mercom Capital Group CEO Raj Prabhu attributes the installation growth in H1 2026 to strong demand and projects moving ahead of key policy changes. The rush to complete projects ahead of the June 1, 2026 deadline for ALMM List-II implementation and large-scale solar installations in the open access segment contributed to the growth, according to the report.
Meeting the Inter-State Transmission System (ISTS) phase-out deadline was another significant factor, adds Mercom India Managing Director Priya Sanjay.
During the reporting quarter, 68% of the total solar capacity came from large-scale solar installations that totaled 8 GW with a 37% quarter-on-quarter (QoQ) and 23% year-on-year (YoY) decline. Together, the top 10 states accounted for 98% of large-scale installations. Rooftop solar installations made up a 33% share with 4 GW added.
India’s cumulative installed solar PV capacity reached 165 GW at the end of June 2026, divided as 83% of large-scale – led by Rajasthan – and 17% of rooftop solar capacity.
The report writers count India’s total large-scale project pipeline at the end of June 2026 at 208 GW. An additional 151 GW has been tendered and is awaiting auction.
India’s tender and auction activity for solar has slowed significantly, declining 22% YoY and 6% QoQ in Q2, with 5 GW utility-scale capacity tendered. Auction of 2 GW dropped by 40% YoY and 56% QoQ.
Land acquisition, limited transmission availability, and a shortage of domestically produced solar cells are reasons the report writers cite as slowing utility-scale solar installations in India. Equipment supply is also turning out to be a challenge, as Sanjay underlines an eight-month waiting period for transformers.
“ALMM List-II has added pressure on domestic cell supply, especially TOPCon, affecting timely procurement and project planning,” states Prabhu. “India’s large project pipeline will not translate into commissioned capacity at current forecasted levels unless these major bottlenecks are addressed.”
The complete report titled Q2 and 1H 2026 India Solar Market Update can be purchased from Mercom’s website.
Recently, the Ministry of New and Renewable Energy (MNRE) announced India’s cumulative installed non-fossil fuel capacity reached 300.5 GW as of July 31, 2026, over 60% of the 500 GW target to be achieved by 2030. Solar’s share is the largest at 164.59 GW, having expanded from 2.8 GW in 2014.
