India’s Solar Surge: 18 GW Added in First Half of 2025
India has installed a remarkable 18 GW of solar capacity in the first half of 2025, with over 11 GW coming online in just the second quarter. This represents a 31% jump compared to the same period last year, underscoring the country’s renewable energy push.
What’s Driving the Sudden Spike in Solar Installations?
The surge in solar installations can be attributed to developers racing to partially commission projects before June 2025 to lock in a 100% waiver on Interstate Transmission System (ISTS) charges. Additionally, DISCOMs are driving demand for round-the-clock renewable power, further propelling the market forward.
States Leading the Solar Charge
Rajasthan, Gujarat, and Maharashtra are dominating the solar landscape, accounting for 78% of large-scale solar additions in Q2 alone. Rajasthan, with its vast empty spaces and relentless sunshine, led the pack with 33.7% of the new capacity, followed closely by Gujarat at 27% and Maharashtra at 24%.
India’s Cumulative Solar Capacity Hits 116.4 GW
As of June 2025, India’s cumulative solar capacity has reached an impressive 116.4 GW. Large-scale projects comprise 86% of this total, with rooftop solar contributing the remaining 14%. Furthermore, the pipeline is robust, with 191 GW of large-scale projects in development and 131 GW tendered but not yet auctioned.
Challenges Ahead
Raj Prabhu, CEO of Mercom Capital Group, highlights the challenges facing the industry, including shortages of DCR-compliant modules, substation bottlenecks, and delayed PPAs. To sustain growth, a stronger domestic manufacturing base and more effective policies are necessary.
A Bright Outlook for India’s Solar Market
With states like Karnataka and Tamil Nadu ramping up their solar efforts, and rooftop incentives gaining traction, the outlook remains positive. While transmission hurdles and land acquisition delays pose risks, the momentum is undeniable, and India’s solar story is far from over.
