Feb 12: India installed a record 36.6 gigawatts (GW) of solar capacity in calendar year 2025, marking a nearly 43% increase over the 25.6 GW added in 2024, according to Mercom India’s newly released Q4 and Annual 2025 India Solar Market Update. Annual installations crossed the 30 GW milestone for the first time, making 2025 the highest-ever year for solar additions in the country.
Large-scale solar projects, including open access installations, accounted for nearly 81% of total additions, while rooftop solar contributed over 19%. In 2025, 29.5 GW of large-scale solar capacity was installed, up 31% from 22.5 GW in 2024. Open access projects alone represented 26% of large-scale additions, driven by supportive policies, accelerated project execution, and favorable market conditions.
Rajasthan, Gujarat, and Maharashtra led large-scale solar installations during the year, contributing approximately 34%, 28%, and 15% of capacity additions, respectively.
“India recorded its highest-ever annual solar installations in 2025, reflecting strong demand and steady execution despite ongoing challenges. Curtailment has emerged as the most pressing issue, particularly in solar-heavy states. At the same time, the upcoming ALMM-II deadline is creating uncertainty around cell availability, raising the risk of short-term supply bottlenecks. Equipment delays and a growing PPA backlog are also weighing on the market. Unless transmission expansion and manufacturing scale move in sync with capacity additions, growth will remain uneven in 2026,” said Raj Prabhu, CEO of Mercom Capital Group.
India added a total of 57 GW of new power capacity in 2025, with solar accounting for 68% of the additions.
In the fourth quarter (Q4) of 2025 alone, India added 9.9 GW of solar capacity, up nearly 11% from 8.9 GW in Q3 2025 and 21% from 8.2 GW in Q4 2024. Large-scale installations in Q4 totaled 7.6 GW, a 12% increase quarter-over-quarter and over 11% year-over-year.
During Q4 2025, Rajasthan, Gujarat, and Andhra Pradesh led large-scale installations, accounting for approximately 41%, 25%, and 10% of additions, respectively.
As of December 2025, India’s cumulative installed solar capacity stood at nearly 136 GW. Large-scale solar projects accounted for almost 85% of the total installed capacity, while rooftop solar contributed about 15%. Rajasthan, Gujarat, and Karnataka topped cumulative large-scale solar capacity, with shares of 30%, 19%, and 12%, respectively.
On the tendering front, nearly 44 GW of large-scale solar projects were announced in 2025, a 45% decline compared to 79.5 GW in 2024. Meanwhile, 20.9 GW of projects were auctioned during the year, down 57% year-over-year from 48.1 GW.
Mercom’s Q4 and Annual 2025 India Solar Market Update, a comprehensive 141-page report, provides detailed insights into installations, market trends, policy developments, and forecasts across all segments of India’s solar market.
