Key Takeaways

• India is on track to become the world’s second-largest solar market by 2026, achieving 150 GW of solar capacity in just 14 months.
• The country is projected to reach 280-300 GW of solar energy to meet its 500 GW non-fossil capacity target by 2030.
• Distributed Renewable Energy and Commercial & Industrial sectors are key growth drivers, with expectations of significant expansion in energy storage capacity.

Rapid Growth in Solar Energy

India’s solar market is set to become the second-largest in the world by 2026, according to the National Solar Energy Federation of India (NSEFI). The country recently achieved a remarkable milestone by adding 50 GW of solar capacity in just 14 months, reaching a total of 150 GW. This rapid expansion is a significant shift from the 11 years it took to initially reach 50 GW, followed by almost three additional years to hit 100 GW.

NSEFI CEO Subrahmanyam Pulipaka emphasized that solar energy capacity is expected to climb to between 280 and 300 GW, which is crucial for India to meet its target of 500 GW of non-fossil fuel energy by 2030. At the current pace, India is positioned for an annual addition rate of 50 GW, reinforcing its commitment to renewable energy.

Future Initiatives and Projects

The country is benefiting from various initiatives, including the PM Surya Ghar program and the upcoming PM KUSUM 2.0. These programs, along with tailored floating solar policies and the demands generated by the National Green Hydrogen Mission, are driving the potential for solar capacity to surpass existing expectations.

In the context of shifting global dynamics, NSEFI forecasts that while other major markets like the United States and the European Union may face slower capacity additions, India is accelerating its renewable energy efforts. The country is outpacing critical milestones and is on track to secure a prominent position in annual solar installations.

Commercial and Industrial Growth

The growth of Distributed Renewable Energy (DRE) and the Commercial & Industrial (C&I) solar sectors will be pivotal in the upcoming years. The C&I segment has shown surprising progress, achieving nearly 10 GW of annual installations for the first time. Policy enablers such as Green Energy Open Access and Virtual Power Purchase Agreements are fostering substantial demand, with expectations that C&I capacity additions will soon rival those of utility-led Power Purchase Agreements (PPAs).

Flagship government initiatives such as PM Surya Ghar and PM KUSUM have played key roles in enhancing DRE adoption, which currently constitutes about 20% of India’s total solar capacity. This figure is anticipated to rise to 35% by 2030.

Strengthening Manufacturing and Supply Chains

On the manufacturing side, India has made significant advancements, supported by Production-Linked incentives and regulatory frameworks aimed at boosting local solar cell production. NSEFI points out that future growth will depend on strengthening supply chains, specifically for essential materials like wafers and polysilicon.

As the country looks towards 2026, integrated clean energy development is anticipated to be crucial. Alongside solar and wind energy growth, energy storage is expected to play an increasingly critical role. The NSEFI suggests that India will achieve significant energy storage capacity within the next 18 months, driven by recent policy initiatives aimed at facilitating deployment.

Overall, the Indian solar sector is poised for a transformative phase of growth, with robust policies and initiatives set to foster continued advancement in renewable energy capabilities.

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