India's Solar Capacity Additions Slip 2.7% in May: MNRE Data

India added 1,234 megawatts of solar power capacity in May 2025. That is a 2.7% drop compared to 1,268 MW in May 2024. The numbers come from the Ministry of New and Renewable Energy, or MNRE, and were reported by Saur Energy.

Rooftop solar and utility-scale both dip

Rooftop solar installations fell to 345 MW in May, down from 372 MW a year earlier. Utility-scale projects, the big solar farms, added 889 MW, compared to 896 MW in May 2024. The decline is small but steady. Cumulative installed solar capacity in India now stands at 92.3 GW.

Industry watchers point to two main reasons for the slowdown. First, a shortage of solar modules. Second, delays in land acquisition for large projects. "The module supply crunch is real," said a senior analyst at a Delhi-based energy consultancy who asked not to be named. "Domestic manufacturing is ramping up, but not fast enough to meet demand."

Government push and policy hurdles

The Indian government has set a target of 500 GW of renewable energy by 2030. Solar is meant to provide 280 GW of that. But the May numbers show the pace is off track. To hit the target, India needs to add roughly 30 GW of solar every year. In the first five months of 2025, total additions stand at 6.1 GW, well below the required run rate.

The Ministry of New and Renewable Energy has rolled out several schemes to speed things up. The Production Linked Incentive scheme for solar modules is one. Another is the PM Surya Ghar: Muft Bijli Yojana, which aims to put rooftop solar on 10 million homes. But implementation has been patchy. State-level bottlenecks, grid connectivity issues, and financing gaps remain.

"The policy intent is strong," said R. K. Singh, a former power minister, in a recent speech. "But execution at the ground level needs to catch up."

State-level picture is mixed

Rajasthan added the most solar capacity in May: 312 MW. Gujarat came second with 198 MW, followed by Karnataka at 167 MW. But states like Tamil Nadu and Maharashtra saw sharp drops. Tamil Nadu added just 89 MW in May, down from 145 MW in May 2024. Maharashtra added 76 MW, compared to 112 MW a year ago.

Industry groups say the slowdown in these states is tied to power purchase agreement renegotiations and transmission infrastructure delays. "Investors are cautious," said a Mumbai-based project developer. "They want clear rules before committing capital."

What happens next

The coming months will be critical. Monsoon season typically slows construction. But a big pipeline of projects, roughly 58 GW, is in various stages of development. If module supply stabilizes and land issues ease, the numbers could pick up in the second half of 2025.

For now, the May data is a warning. India's solar story is still growing, but it is not growing fast enough.