India Added 18 GW Of Solar Power Capacity In The First Half Of 2025

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Mercom India Research released its Q2 2025 India Solar Market Update Report at the end of August. I was pleased to be able to submit some questions to dig into how India is expanding its solar power capacity. With a human population of about 1.45 billion people, India’s expansion of clean, renewable electricity is obviously quite important to move toward less climate change and toxic air pollution emissions from fossil fuels.

Note that climate change impacts in India are already causing people to have to move. “According to GRID 2024, floods alone triggered two-thirds of India’s disaster-related displacements last year—the highest level since 2012. Cyclones caused another 1.6 million. Assam accounted for nearly half of these movements, driven by intensifying floods, deforestation, and decaying water infrastructure.” So, the country is eager to do its part to stop global heating.

Raj Prabhu, CEO of Mercom Capital Group, answered some questions about the country’s solar power growth this year.

India added 11.3 GW of solar capacity in Q2 2025. How was that accomplished? How much of an increase was that quarter over quarter?

India added 11.3 GW of solar capacity in Q2 2025 compared to around 6.8 GW in Q1 2025, marking a 66.9% quarter-over-quarter increase. The surge was largely driven by policy-linked commissioning deadlines and the boost in rooftop solar installations. Several utility-scale projects that had been delayed in previous quarters were finally completed and commissioned during this period, adding significant capacity. Developers also expedited commissioning, including partial completions, to secure the Interstate Transmission System charges waiver that is set to expire on June 30, 2026. In addition, the PM Surya Ghar Muft Bijli Yojana gave a strong push to rooftop solar adoption, contributing meaningfully to the overall capacity growth for the quarter.

Solar accounted for 64% of new power capacity additions in Q2 2025. Was it about the same in the previous quarter?

Solar accounted for 64 percent of new power capacity additions in Q2 2025. This was higher than the previous quarter when solar made up 54.2 percent of new capacity additions.

With all the new solar power being added, is some coal power being eliminated?

While India continues to add solar and other renewables, coal’s share in the energy mix is beginning to edge downward. In Q1 2025, India’s installed coal capacity stood at 215.2 GW, which reduced slightly to 214.7 GW in Q2 2025. Coal’s share in the overall power mix fell by 1.2 percent in Q2 2025 compared to Q1, driven by the rapid increase in renewable generation, particularly solar, which is expanding faster than coal demand. The reduction is modest but signals a consistent shift. As renewables, particularly solar and wind, continue to expand, coal’s relative importance in India’s generation mix is expected to decline over time.

India’s cumulative installed solar capacity stood at 116.4 GW as of June 2025. Are you expediting this total to increase in the next 5 years, and if so, how much?

India’s cumulative installed solar capacity stood at 116.4 GW as of June 2025, and the trajectory over the next five years points to a significant ramp-up. Current forecasts project capacity to reach 127 GW by the end of 2025, 166 GW by 2026, 207 GW by 2027, 249 GW by 2028, and 292 GW by 2029. The momentum is already evident, with Q2 2025 alone adding more than 11 GW, one of the strongest quarters on record.

That said, sustaining this pace will not be without challenges. Developers continue to face shortages of DCR-compliant modules, along with transmission and substation bottlenecks and delays in signing power purchase agreements. At the same time, the market is shifting toward storage, round-the-clock, and hybrid projects to strengthen grid stability and address curtailment risks. Unless domestic manufacturing capacity expands further and policy interventions keep pace with the scale of installations, future additions will come under pressure and could lag behind the ambitious pipeline.

India’s large-scale solar project pipeline stood at almost 191 GW. Is there a timeline for when all this new solar might be installed?

India’s large-scale solar project pipeline of nearly 191 GW provides strong project visibility and reinforces the country’s pathway to achieving its 280 GW solar target by 2030. With 18 GW already added in the first half of 2025, cumulative solar capacity has reached 116.4 GW, and steady additions of around 30 GW annually will keep India on track. Near-term growth will continue to be driven by large utility-scale solar projects that can typically be delivered within 15 to 18 months, while the increasing share of hybrids, round-the-clock, and storage-backed projects highlights a shift toward more reliable and grid-friendly power. With consistent policy support, timely signing of PPAs, transmission readiness, and expansion of domestic manufacturing, the 191 GW pipeline positions India for a phased but strong build-out to meet its solar target by 2030.

For the additional 131 GW of projects tendered and pending auction, is all of that 131 GW expected to move to the installation phase and be completed?

Not all of the 131 GW of projects tendered and pending auction are expected to move into the installation phase and reach completion. The pipeline consists of development projects, EPC projects, and power purchase projects. Based on past trends, only about 75 to 80 percent of the total pipeline, or roughly 100 GW, is expected to move forward. The remainder will likely face setbacks, rebidding, or cancellation.

Does India have a goal to eventually run on only clean, renewable electricity?

Yes, India has a clear long-term vision of transitioning toward running primarily on clean, renewable electricity. The country has set a target of installing 500 GW of non-fossil fuel-based electricity capacity by 2030, including 280 GW of solar (both utility-scale and rooftop), 140 GW of onshore wind, 30 GW of offshore wind, and 50 GW of hydropower and biomass. To support this build-out, India also plans to add 47 GW of battery storage by 2032, along with promoting pumped hydro projects to balance variable solar and wind generation and strengthen grid stability.

 An annual tendering plan for FY24 to FY28 calls for at least 40 GW of renewable capacity additions each year, primarily solar and hybrid projects, along with 10 GW of standalone wind projects. This steady pipeline ensures visibility for developers and investors while keeping the country aligned with its 2030 target. Looking further ahead, India has pledged to achieve net zero emissions by 2070.