Solar Takes 56.4% Share of India's Capacity in Q2 2026

Rapid growth in solar

India added about 13.3 gigawatts (GW) of renewable capacity in the second quarter of 2026, according to data compiled by Mercom India. Solar accounted for 7.5 GW, giving it a 56.4% share of the total addition. Wind contributed 4.0 GW, while the remaining 1.8 GW came from small hydro, biomass and other sources.

The surge in solar builds on the strong momentum seen in 2025, when the sector crossed the 100 GW mark for the first time. In Q2 2026, solar installations grew by 22% year‑on‑year, outpacing wind, which rose 9%.

Policy support and market drivers

The government's target of 450 GW of renewable power by 2030 keeps the market hot. The latest auction round, held in March, offered a median tariff of ₹2.70 per kilowatt‑hour for solar projects, well below the level that secured bids two years ago. State utilities have also signed power purchase agreements that lock in solar at competitive rates.

Domestic manufacturers have stepped up output as the Ministry of New and Renewable Energy pushes for a 30% local content rule. This has helped keep module prices stable even as global supply chains tighten.

Challenges ahead

Despite the strong numbers, the sector faces a few hurdles. Land acquisition remains slow in several states, and grid congestion limits the ability to move power from remote solar parks to demand centres. The Ministry is working on new transmission projects, but progress is uneven.

Financing costs have risen slightly as global interest rates climb, but banks continue to offer loans to vetted developers. Investors remain cautious, watching policy clarity and the pace of grid upgrades.

Looking ahead

Analysts expect solar to keep growing, driven by falling module costs and the government's push for clean energy. If the current trend holds, solar could cross the 60% share of new renewable capacity by the end of 2026.

Q2 2026 - a strong quarter for solar shows how the sector is becoming the backbone of India's clean‑energy push.