Solar power has emerged as the main driver of India’s electricity sector, accounting for over 85 per cent of the 20 GW of new capacity added in the first five months of FY26, according to a report by SBI Capital Markets (SBICAPS). The study projects that more than 45 GW of solar capacity will be installed this year, marking the highest-ever annual addition for the country.
India’s installed solar capacity has increased 3.4 times in the past five years, overtaking wind in FY21 to become the country’s largest renewable energy source. Policy support, falling solar module prices, and India’s green energy targets have been the main sources of this growth. The recent cut in GST on renewable components from 12 percent to 5 percent is also expected to reduce installation and maintenance costs.
The report notes that more than 20 percent of India’s solar capacity now comes from rooftop and open-access systems, reflecting a rising consumer demand. Many Schemes like the PM Surya Ghar Muft Bijli Yojana are expected to increase the use of rooftop solar in both cities and villages.
On the supply side, the government’s Approved List of Models and Manufacturers (ALMM) is strengthening the domestic solar industry.ALMM-I helped India reach 100 GW of solar module capacity. If local production is ready from June 2026, ALMM-II will also cover solar cells, and ALMM-III may include wafers by 2028
In the first quarter of FY26, energy demand stayed low because of heavy rains, but SBICAPS expects it to rise during the festive season as industries recover.
Source:
0 Comments