NEW DELHI: Solar capacity additions in India will accelerate in the Financial Year (FY) 2026 and FY27, with 85-90 GW of new solar capacity expected to be added during these two years combined, according to a report by SBI Caps.
The report adds that the additions of residential rooftop solar support the sector to drive the expansion.
The report further added that the solar additions could double to 30 GW in FY 25, as solar capacity additions have reached unprecedented levels, demonstrating resilience to demand fluctuations.
As per the report, annual module demand is forecast at 100 GW.
The report, however, added that the realization of the projections hinges on moderate PPA-PSA gap reduction, PM-SGMBY completion by FY28, and enhanced RPO compliance. Land constraints, ALCM implementation, and restrictive state net metering policies pose downside risks. Conversely, timely schemes (especially PM-KUSUM) and project execution could further augment demand, the report said
Meanwhile, as per the government data, India’s solar power sector has witnessed an extraordinary 3450 percent increase in capacity over the past decade, rising from 2.82 GW in 2014 to 100 GW in 2025.
As of January 31, 2025, India’s total solar capacity installed stands at 100.33 GW, with 84.10 GW under implementation and an additional 47.49 GW under tendering.
Solar energy remains the dominant contributor to India’s renewable energy growth, accounting for 47 per cent of the total installed renewable energy capacity. In 2024, record-breaking 24.5 GW of solar capacity was added reflecting a more than two-fold increase in solar installations compared to 2023. Last year also saw the installation of 18.5 GW of utility-scale solar capacity, a nearly 2.8 times increase compared to 2023. Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Madhya Pradesh are among the top-performing states, contributing significantly to India’s total utility-scale solar installations.
The rooftop solar sector in India witnessed remarkable growth in 2024, with 4.59 GW of new capacity installed, reflecting a 53 percent increase compared to 2023.
According to the government, a key driver of this growth has been the PM Surya Ghar: Muft Bijli Yojana, launched in 2024, which is now nearing 9 lakh rooftop solar installations, enabling households across the country to embrace clean energy solutions.
India has also made significant strides in solar manufacturing. In 2014, the country had a limited solar module production capacity of just 2 GW. Over the past decade, this has surged to 60 GW in 2024, establishing India as a global leader in solar manufacturing.