Key Takeaways

India added 44.61 GW of solar capacity in FY2025-26 — the highest ever annual addition, nearly double FY2024-25's 23.83 GW
Cumulative installed solar crossed 150.26 GW as of March 31, 2026, making India the third-largest solar market globally
Q1 2026 alone saw 15.3 GW installed — the highest single-quarter addition on record, up 143% year-on-year
Gujarat and Rajasthan led large-scale additions; open access projects grew sharply
The ALMM List-II (domestic solar cell mandate) effective June 1, 2026 is now reshaping procurement for new projects
For industrial buyers: solar project costs, EPC timelines, and equipment availability are all being affected by this supply-side shift

India's solar energy sector delivered a landmark performance in fiscal year 2025-26, shattering previous records and confirming the country's status as one of the world's fastest-growing solar markets. For industrial and commercial facility owners evaluating solar investments, these developments have direct implications for EPC timelines, equipment pricing, and the strategic case for going solar in 2026.

Record FY2025-26: 44.61 GW Installed

According to official data cited by PIB (Press Information Bureau), India added 44.61 GW of new solar capacity in FY2025-26 — against a target of 34 GW. This represents:

87% outperformance against the government's own target
Nearly double the 23.83 GW added in FY2024-25
The single highest annual solar capacity addition in India's history

As of March 31, 2026, India's cumulative installed solar capacity stood at 150.26 GW, comprising:

110.43 GW utility-scale (ground-mounted) projects
25.73 GW rooftop solar
14.10 GW PM Kusum (agri/off-grid) projects

This positions India as the third-largest installed solar capacity market globally, behind China and the United States.

Source: PIB Press Release on India Renewable Energy Capacity; Mercom India / PV Magazine India

Q1 2026: Record 15.3 GW in a Single Quarter

The first quarter of calendar year 2026 (January–March) produced 15.3 GW of new solar installations — the highest quarterly figure ever recorded in India. This figure, reported by Mercom India in May 2026, reveals:

Segment	Q1 2026 Addition
Large-scale (utility)	12.6 GW (82% of total)
Rooftop solar	2.7 GW (18% of total)
Total	15.3 GW

Year-on-year, this represents a 143% increase over the 6.3 GW installed in Q1 2025.

What drove the Q1 2026 rush? Two primary factors:

ALMM List-II implementation (June 1, 2026): Developers rushed to commission projects using imported solar cells before the domestic cell mandate took effect. Projects commissioned before June 1 could use existing module stocks.
Improved grid connectivity: Key solar states — particularly Gujarat and Rajasthan — saw faster transmission infrastructure readiness, enabling commissioning of previously delayed projects.

State-Level Breakdown: Who Led Q1 2026?

In large-scale solar additions during Q1 2026:

Gujarat: approximately 40% of additions
Rajasthan: approximately 39% of additions
Maharashtra: approximately 6%

For industrial buyers in Haryana, Delhi-NCR, and UP — India's manufacturing heartland — the pipeline of projects is substantial even if Q1 2026 was dominated by Rajasthan and Gujarat. Open access solar from these states flows into northern industrial grids via ISTS (Interstate Transmission System) infrastructure.

What is ALMM List-II and Why Does It Matter for Industrial Projects?

The Approved List of Models and Manufacturers (ALMM) List-II, effective June 1, 2026, mandates that solar cells used in government-approved projects must be sourced from ALMM-approved domestic manufacturers. This applies to:

Net-metering projects
Open access solar projects
Government-backed schemes (PM Kusum, PM Surya Ghar Yojana)

Exemptions: MNRE has constituted an Expert Committee to handle case-by-case exemption requests. Developers with partially commissioned projects or documented procurement constraints can apply via the NISE portal (solardcrportal.nise.res.in) — but only until June 30, 2026. After this date, no applications will be entertained.

Source: SolarQuarter, June 9, 2026; Business Standard, June 8, 2026

What This Means for Industrial Solar Buyers in June 2026

1. Module Prices Are in Transition

The rush to commission before ALMM List-II created a near-term draw on imported module inventory. As the mandate now takes effect, module pricing dynamics are shifting:

Short term (Q2 2026): Potentially tighter supply of ALMM-compliant modules as domestic cell manufacturers scale up
Medium term (H2 2026): More clarity on pricing as approved domestic cell manufacturers increase output under PLI (Production Linked Incentive) schemes
Industrial buyers placing fresh orders in June–July 2026 should work with their EPC contractor to confirm module sourcing complies with ALMM List-II requirements

2. Open Access Solar: Stronger Pipeline, Changing Rules

The 2.7 GW of open access solar installed in Q1 2026 represents a 170% year-on-year increase according to industry reports. This segment is growing fast, which is good news for industrial consumers seeking to procure off-site renewable power. However:

Haryana's HERC imposed a ₹1.37/unit additional surcharge on open access consumers in May 2026 to recover DISCOM stranded costs (as more large consumers exit the DISCOM supply)
Open access regulations continue to vary by state — what works in Rajasthan may not apply in Haryana or UP

Industrial buyers exploring open access solar should review the latest SERC orders in their specific state before committing to a solar PPA agreement.

3. EPC Timelines: Post-Rush Normalization

After the Q1 2026 commissioning rush, EPC contractors are now operating in a more normalized environment. This means:

Better equipment availability for projects starting mid-2026
More competitive EPC pricing compared to the supply-constrained environment of late 2025 / early 2026
However, ALMM List-II compliance adds procurement steps — working with an experienced solar EPC company in India that understands the ALMM approval process is essential
For RESCO/OPEX models, the developer bears ALMM compliance risk — ensure your RESCO solar contract includes module compliance clauses

4. The Case for Acting in H2 2026

With India adding over 44 GW in a single fiscal year, the solar ecosystem has matured rapidly:

More MNRE-empanelled EPC contractors with proven track records
Better-defined open access rules in most states
PLI-backed domestic manufacturing scaling up, providing supply security for future projects
Accelerated depreciation of 40% in Year 1 continues to make solar the most tax-efficient capex decision for industrial facilities

For a factory or warehouse currently paying ₹8–12/unit for grid power, the case for solar has never been stronger — whether through CAPEX ownership, RESCO/OPEX zero-investment model, or open access solar procurement. Use our solar savings calculator to estimate your specific ROI.

What India's 50 GW/Year Target Looks Like in 2026

India's official target for installed solar capacity is 500 GW by 2030, implying roughly 50 GW per year of net additions through 2030. FY2025-26's 44.61 GW shows India is within striking range of this pace. JMK Research projects approximately 42.5 GW of new solar installations in CY2026, comprising:

32.5 GW utility-scale
8.5 GW rooftop
1.5 GW off-grid / Kusum

For industrial consumers, this sustained build-out means better grid integration of renewable power, more competitive tariffs from open access suppliers, and a deepening EPC contractor market — all positive signals for long-term solar investment decisions.

Implications for Delhi-NCR, Haryana, and UP Industrial Buyers

Sun Wave Technologies focuses on industrial and commercial solar across Delhi-NCR, Haryana, Rajasthan, UP, Gujarat, and Maharashtra. Here is what the FY2026 record means for buyers in these target markets:

Haryana: Strong Rajasthan solar capacity means competitive open access tariffs flowing into Haryana via ISTS, but the new ₹1.37/unit additional surcharge from HERC (May 2026) partially offsets savings. Rooftop solar via net metering or behind-the-meter solar remains the most cost-effective option for most industrial consumers under 2 MW.

Delhi-NCR / UP: Both states have improving open access frameworks. Uttar Pradesh has significant rooftop and ground-mount solar activity. For factories in Noida, Greater Noida, and Ghaziabad, rooftop CAPEX or RESCO solar typically delivers the strongest ROI.

Rajasthan: The record-setting state for solar additions. Open access solar from Rajasthan is available at competitive tariffs. Industrial consumers in Bhiwadi, Neemrana, and Alwar industrial corridors can benefit directly.

FAQ: India Solar Record FY2026 and Industrial Buyers

Q: How much solar capacity did India add in FY2025-26? India added 44.61 GW of solar capacity in FY2025-26 — the highest annual solar addition in India's history, nearly double the 23.83 GW added in the previous year.

Q: What is India's total installed solar capacity as of March 2026? India's cumulative installed solar capacity was 150.26 GW as of March 31, 2026. This includes 110.43 GW utility-scale, 25.73 GW rooftop, and 14.10 GW from PM Kusum and off-grid projects.

Q: Why did India install a record 15.3 GW in Q1 2026? The primary driver was the ALMM List-II deadline (June 1, 2026), which mandated use of domestically manufactured solar cells. Developers rushed to commission projects before this requirement took effect, leading to the record quarterly installation figure.

Q: What is the ALMM List-II and does it affect my industrial solar project? ALMM List-II requires that solar cells used in projects under government schemes, net-metering, and open access must come from MNRE-approved domestic manufacturers. If you are commissioning a new project in 2026, your EPC contractor must source ALMM-compliant modules. Exemptions are available on a case-by-case basis via the NISE portal until June 30, 2026.

Q: Will solar module prices increase due to ALMM List-II? Short-term pricing depends on how quickly domestic cell manufacturers scale production. There may be some premium for ALMM-compliant modules in mid-2026 as the domestic supply ramps up. However, PLI-backed manufacturing investments mean supply should normalize by H2 2026 and into 2027.

Q: Is now a good time for a factory to invest in solar? Yes. The record FY2026 installation pace reflects a mature, competitive EPC market. Module prices remain historically competitive, accelerated depreciation of 40% in Year 1 improves tax efficiency, and grid reliability concerns are a strong driver for captive solar. Contact a solar EPC company in India for a site-specific assessment.

Q: What were the key solar states in Q1 2026? Gujarat led with approximately 40% of large-scale additions, followed by Rajasthan at approximately 39%, and Maharashtra at approximately 6% in Q1 2026.

What Should Industrial Buyers Do Right Now?

If you have a project in procurement: Confirm with your EPC contractor that modules are ALMM List-II compliant. Non-compliant modules may create issues for net-metering or open access approval.
If you are evaluating solar for the first time: The post-rush market (mid-2026 onward) is favorable — more EPC capacity, normalizing module supply, and strong PLI-backed domestic manufacturing.
If you are on the DISCOM grid paying above ₹8/unit: The combination of accelerated depreciation + avoided electricity cost + potential RECs (Renewable Energy Certificates) makes solar one of the highest-ROI investments a factory can make in 2026.
If you are considering open access: Review your state's latest SERC orders carefully. Haryana, Rajasthan, and UP all have distinct surcharge structures that affect the net saving from open access solar.

Sun Wave Technologies provides solar EPC, RESCO/OPEX, and open access advisory services across Delhi-NCR, Haryana, UP, Rajasthan, Gujarat, and Maharashtra. Our team understands ALMM compliance, open access wheeling charges, and how to structure a solar project that maximizes ROI for industrial consumers in the post-FY2026 market.

Sources

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India Solar Record FY2026: 44.61 GW Added, What It Means for Industry