In recent years, India has impressively risen to become one of the most important solar markets worldwide. According to MERCOM, the country saw a record deployment of around 36.6 gigawatts (GW) of solar capacity in 2025 – an increase of 43 percent. This elevates India to third place in the global PV ranking, behind China and the USA. This growth is driven by ambitious public incentive programs, which also cover PV production. India’s position within the global Sunbelt may also be strategically favorable, enabling the development of an electricity system powered entirely by renewable energy, offering an affordable power mix. Consequently, the developing country’s significance for the global solar market is impossible to ignore.
In February 2026, India’s solar capacity stood at 143.6 GW. India currently has around 68 GW of solar projects in the pipeline, with a further 10 GW in the bidding phase; however, due to a change in data definition, these figures are not directly comparable with the pipeline totals cited previously. Utility-scale installations dominate the market with just under 109.5 GW, while roof-top solar systems account for 24.8 GW at present. India’s total installed renewable energy capacity is around 266.6 GW, 54 percent of which comes from solar energy.
Driven by urbanization, industrialization and population growth, India’s energy appetite is growing rapidly. In pursuit of climate neutrality by 2070, the country is placing its strongest bet on solar energy. Instead, current market data point to continued strong growth: India is expected to add around 42.5 GW of new solar capacity in 2026, while the government continues to pursue its target of 500 GW of non-fossil power capacity by 2030. A model generated by the Energy Transitions Commission shows a possible long-term scenario: an electricity system which, based on the high availability of renewable sources of energy, consisting of 80 percent solar and 20 percent wind. In this scenario, the annual electricity generation would be 7,300 TWh in 2050, which would easily cover the expected demand of 5,500 TWh.
Along with the expansion of its domestic solar energy generation capacity, India is positioning itself globally as a key PV production hub. End of 2025, the annual module production capacity was already at 210 GW, and cell production at 27 GW. India is thus emerging as a challenger to China’s current dominance in global PV production. The Production Linked Incentive (PLI) scheme, which has been funding the establishment of Indian PV production with a total of around 2.16 billion euros (24.000 Crore Indian Rupees) since 2021, is a central driver for the expansion and gives domestic value creation a boost.
To continue the expansion of solar energy, the Indian government is employing a whole package of measures:
In addition, an incentive scheme for storage systems to promote the needs-based provision of electricity is being implemented.
India offers a unique environment for international companies and investors:
India is well on the way to becoming one of the world’s largest solar markets – and more than that, it is also consolidating its position as a production hub for PV technology. This opens up various business opportunities for the solar industry – from project development and partnerships to investment in industry. By joining the Indian market now, investors can secure early access to one of the most dynamic growth markets within the global energy transition.
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