India’s solar energy sector achieved a historic milestone in 2025, adding a record 36.6 GW of capacity, a 43% increase compared to the previous year. This marks the first time the country has surpassed the 30 GW annual threshold. Driven primarily by large-scale projects, which accounted for over 80% of new installations, the growth highlights the nation’s accelerating transition toward renewable energy and its commitment to expanding its green power infrastructure.
According to the latest “Q4 and Annual 2025 India Solar Market Update” from Mercom India, the country’s total solar additions rose significantly from 25.6 GW in 2024. Large-scale solar projects, including commercial and industrial open access systems, dominated the landscape with 29.5 GW of new capacity—a 31% year-on-year rise. Rooftop solar accounted for the remaining 19% of the year’s total additions.
Regionally, Rajasthan emerged as the leader in large-scale installations, contributing 34% of the national total. Gujarat followed closely with 28%, while Maharashtra rounded out the top three with 15%. The momentum remained strong through the end of the year, with the fourth quarter alone seeing 9.9 GW of new capacity, an 11% increase over the third quarter of 2025 and a 21% jump compared to the same period in 2024.
During the final three months of the year, Rajasthan maintained its dominance by hosting 41% of new large-scale projects. Gujarat and Andhra Pradesh followed with 25% and 10%, respectively. Despite these record-breaking figures, the industry faces several hurdles. Raj Prabhu, CEO of Mercom Capital Group, pointed out that power curtailment in states with high solar density remains a significant concern for developers and grid operators alike.
Looking ahead to 2026, the sector faces potential risks related to the upcoming ALMM-II deadline, potential equipment delays, and a growing backlog of power purchase agreements. Experts suggest that for India to sustain this level of growth, the expansion of transmission networks and domestic manufacturing capacity must keep pace with the rapid installation of solar modules and solar panels across the country.