NEW DELHI, April 12: India is poised to emerge as the world’s second-largest solar market by 2026 in terms of annual installations, said National Solar Energy Federation of India (NSEFI) in a statement.
The country has recorded its fastest-ever addition of 50 gigawatts (GW) of solar capacity in just 14 months, taking the total installed capacity beyond the 150 GW milestone.
This marks a sharp acceleration compared to the 11 years taken to reach the first 50 GW and nearly three years to scale up to 100 GW.
Commenting on the development, NSEFI Chief Executive Officer Subrahmanyam Pulipaka said India is now approaching an annual solar capacity addition trajectory of 50 GW, aligning strongly with its target of achieving 500 GW of non-fossil fuel capacity by 2030.
He noted that solar installations could even surpass earlier projections of 280-300 GW, driven by initiatives such as PM Surya Ghar, the upcoming PM KUSUM 2.0, floating solar policies, and rising demand from the National Green Hydrogen Mission.
Amid evolving global dynamics, NSEFI observed that while major markets like the United States and the European union may witness a slowdown in capacity additions, India continues to accelerate deployment and is likely to secure the second position globally in annual solar installations next year.
The federation said the Distributed Renewable Energy (DRE) and Commercial & Industrial (C&I) segments will be key growth drivers in the near term.
The C&I segment has already crossed nearly 10 GW in annual installations for the first time, supported by policy measures such as Green Energy Open Access, Virtual Power Purchase Agreements, and Renewable Consumption Obligation frameworks.
Flagship government programmes, including PM Surya Ghar and PM KUSUM, have also significantly boosted DRE adoption, which currently accounts for around 20 per cent of India’s installed solar capacity. This share is projected to rise to 35 per cent by 2030.
On the manufacturing front, NSEFI noted that policy support through Production Linked Incentive schemes, Approved List of Models and Manufacturers, and Basic Customs Duty measures has strengthened domestic module production and accelerated progress towards self-reliance in solar cells.
Looking ahead, the federation emphasised the need to develop upstream supply chains such as wafers, ingots, polysilicon and quartz to sustain growth. It also projected that energy storage will play a critical role in the next phase, with India expected to achieve double-digit storage capacity within the next 18 months.
NSEFI said recent policy interventions, including viability gap funding (VGF) and provisions for non-solar hour connectivity, are likely to drive a significant surge in energy storage deployment over the coming year. (UNI)
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