India added 18 GW of new solar power capacity in the first half of 2025, with over 11 GW

installed in the second quarter alone, according to Mercom India Research’s Q2 2025 India Solar Market Update. This represents a 31% increase compared to the same period in 2024. Large-scale solar additions grew 20% year-on-year, rising from 12.6 GW.

Mercom attributed the surge to regulatory deadlines, which prompted developers to partially commission projects before June to secure full exemptions on interstate transmission charges. Strong demand from distribution companies for round-the-clock renewable energy also contributed to the growth.

Of the 18 GW installed in H1, 11.3 GW came online in Q2, a 145% increase from 4.6 GW in Q2 2024. Rajasthan, Gujarat, and Maharashtra led installations in the quarter, contributing 33.7%, 27%, and 17.4%, respectively.

“India’s solar installations surged in Q2, making it one of the strongest quarters to date,” said Raj Prabhu, CEO of Mercom Capital Group. “Developers continue to face challenges such as shortages of DCR-compliant modules, transmission and substation bottlenecks, and PPA delays. Without stronger domestic manufacturing and balanced policy interventions, installations are likely to remain constrained despite the growing pipeline.”

As of June 30, 2025, India’s cumulative solar capacity reached 116.4 GW, with large-scale projects accounting for nearly 86% and rooftop systems contributing about 14%. Rajasthan, Gujarat, and Karnataka represented 29%, 18%, and 13% of installed large-scale capacity, respectively.

India’s large-scale solar project pipeline now stands at nearly 191 GW, with over 131 GW tendered and awaiting auction as of June 2025.