India Likely to Become Second-Largest Solar Market by 2026, Says NSEFI

India’s solar energy sector continues to expand steadily, supported by policy initiatives and rising demand across segments. According to industry estimates, the country has recently crossed 150 GW of installed solar capacity, marking a faster pace of growth compared to earlier phases. 

This momentum is expected to support India’s position among leading global solar markets in the coming years.

India’s Solar Capacity Growth Trend

India has added 50 GW of solar capacity within a span of approximately 14 months, reflecting an accelerated pace of deployment. This is notably faster compared to the earlier milestones, where the first 50 GW took over a decade and the next 50 GW nearly three years.

The increase in installations indicates a shift towards more consistent and scalable renewable energy expansion.

Outlook for 2026 and Beyond

Industry projections suggest that India is on track to become the second-largest solar market globally by 2026 in terms of annual installations. This outlook is supported by sustained capacity additions and relatively stable growth compared to other major markets.

At the same time, some global regions, including the United States and parts of Europe, may experience moderation in installation growth, potentially influencing global rankings.

Role of Government Policies and Initiatives

Several government-led programmes are contributing to the sector’s expansion. Initiatives such as rooftop solar schemes and rural solar projects are supporting wider adoption.

Policy frameworks, including open access regulations and renewable consumption requirements, are also facilitating increased participation from commercial and industrial users.

Growth Drivers: Distributed and C&I Solar

Distributed Renewable Energy (DRE) and Commercial & Industrial (C&I) segments are expected to play a key role in the coming years.

The C&I segment has shown steady growth, with installations reaching notable levels recently. This trend may continue as businesses seek alternative energy sources and cost efficiencies.

DRE adoption is also projected to rise, with its share in total installed capacity expected to increase over time.

Manufacturing and Supply Chain Development

India has made progress in strengthening its domestic solar manufacturing ecosystem. Policy support measures have encouraged local production of modules and related components.

However, further development of upstream supply chains, including raw materials and intermediate components, will be important for long-term sustainability.

Emerging Focus on Energy Storage

As renewable capacity grows, energy storage is expected to become an important component of the energy mix.

Recent policy measures and regulatory support may enable increased deployment of storage solutions over the next one to two years, supporting grid stability and renewable integration.

Read More: Saatvik Green Energy Share Price Jumps Over 8% After ₹108.75 Crore Solar Module Order Win.

Conclusion

India’s solar sector is progressing at a steady pace, supported by policy measures, demand growth and expanding infrastructure. With continued capacity additions and evolving market dynamics, the country is positioned to strengthen its role in the global solar landscape by 2026.

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