Bengaluru, Nov 12: India installed 27.3 gigawatts of large-scale solar capacity in the first nine months of the calendar year 2026, up 21% compared to 22.5 GW in 9M 2025, according to Mercom India Research’s newly released Q3 and 9M 2026 India Solar Market Update Report.
Total solar additions reached a record 38.5 GW in 9M 2026, up 40.3% year-over-year. Solar accounted for 77% of the 50 GW of new power capacity added during 9M 2026.
Installation growth was concentrated in the first half of 2026, as developers accelerated commissioning ahead of the June 1 implementation of the approved list of models and manufacturers (ALMM) List-II requirements for solar cells and the phased reduction in interstate transmission system (ISTS) charge waivers beginning in July. These deadlines pulled some commissioning forward into the first half.
India added nearly 11 GW of solar capacity in Q3 2026, the fourth-highest quarterly total on record. Installations declined 9.5% QoQ but increased 19% YoY. India added 6.3 GW of large-scale solar capacity in the third quarter (Q3) of 2026, with installations down 24% quarter-over-quarter (QoQ) and 11% YoY. Large-scale projects accounted for 58% of total quarterly solar additions.
Rajasthan, Gujarat, and Maharashtra led large-scale solar additions in Q3 2026, accounting for 28%, 25%, and 14% of quarterly capacity additions, respectively.
“India has already added more solar capacity in the first nine months of 2026 than in all of 2025, but the Q3 slowdown in large-scale installations shows where growth is being held back. Demand remains strong across utility-scale, open access, and rooftop solar, but transmission bottlenecks, domestic cell availability, higher costs, and delays in land, connectivity, and power offtake are slowing commissioning. The size of the project pipeline is significant, but what matters now is how much of that capacity can actually be brought online and on schedule,” commented Raj Prabhu, CEO at Mercom Capital Group.
Rooftop solar installations climbed 22% QoQ to 4.7 GW, compared to 3.8 GW in Q2 2026, and rose 122% YoY compared to 2.1 GW in Q3 2025. Rooftop solar made up a record 42% of quarterly solar additions, signaling a significant shift in the installation mix.
As of September 2026, India’s cumulative installed solar capacity reached 176.6 GW. Large-scale solar projects accounted for 82% of installed capacity, while rooftop solar made up the remaining 18%.
Solar photovoltaic (PV) comprised 31% of India’s total installed power capacity and 58% of installed renewable energy capacity.
Rajasthan, Gujarat, and Karnataka continued to lead the country in cumulative large-scale solar capacity, accounting for 30%, 22%, and 11% of total installations, respectively.
The top 10 states accounted for 98% of large-scale solar capacity commissioned during Q3 2026.
In Q3 2026, agencies issued 9 GW of large-scale solar tenders, up 61% QoQ and down 51% YoY. Auctions totaled 4 GW, down 10% QoQ and up 64% YoY.
In 9M 2026, 22.6 GW of large-scale solar tenders were announced, down 47% compared to 42.6 GW in 9M 2025. Large-scale solar auctions totaled 13 GW, a 23% decline compared to 16.6 GW in 9M 2025.
The report also provided installation trends by state, project pipeline analysis, tender and auction activity, and market forecasts to help developers, manufacturers, investors, and other industry participants assess emerging opportunities and execution risks.
Key Highlights from Mercom’s Q3 and 9M 2026 India Solar Market Update:
- India installed 27.3 GW of large-scale solar capacity in 9M 2026, up 21% YoY
- Solar accounted for 77% of the 50 GW of new power capacity added during 9M 2026
- India added 6.3 GW of large-scale solar capacity in Q3 2026
- Rooftop solar additions rose 122% YoY in Q3 2026
- The top 10 states accounted for 98% of large-scale solar installations in Q3 2026
