India’s solar energy share rises to 28.4% of total power capacity in Q1

Wind energy capacity stood at 56.1 GW.

India’s solar energy sector continued its rapid expansion in the first quarter of 2026, accounting for 28.4% of the country’s total installed power capacity and 55% of total renewable energy capacity, according to data compiled from the Central Electricity Authority (CEA), Ministry of New and Renewable Energy (MNRE), and Mercom’s India Solar Project Tracker.

This marks an increase from the previous quarter, when solar represented 26.5% of total capacity and 52.7% of renewable capacity, reflecting steady growth in the segment.

Solar project installations rose sharply, increasing 12% quarter-on-quarter (QoQ) and 46% year-on-year (YoY).

Electricity generation from solar sources also saw significant gains. India produced approximately 52.2 billion units (BU) of solar power in Q1 2026, up 24.3% YoY. On a QoQ basis, generation increased from 41.2 BU to 52.2 BU, representing a jump of around 27%.

India’s total renewable energy capacity, including large hydro, reached 276.5 GW by the end of Q1 2026, accounting for 51.7% of total installed power capacity.

This is a decline from 50.2% in Q4 2025 and a significant increase compared to 46.1% in Q1 2025, underscoring the long-term upward trend in clean energy adoption.

Wind energy capacity stood at 56.1 GW, contributing 10.5% of total installed capacity and over 20% of renewable energy capacity.

Large hydropower remained a major contributor with 51.4 GW installed capacity, representing 9.6% of total power capacity.

The quarter saw new additions, including NHPC’s commissioning of Subansiri Lower Unit-3 and Unit-1, adding 500 MW of dispatchable hydropower capacity.

Biomass and small hydro accounted for 2% and 1% of total installed capacity, respectively.

Despite absolute growth in capacity, the share of conventional power continued to fall. Installed conventional capacity stood at 258.1 GW, representing 48.3% of total capacity, down from 49.8% in the previous quarter and 53.9% a year earlier.

Coal remains the dominant thermal source at 41.5% of total capacity, followed by gas (3.8%), nuclear (1.6%), lignite (1.2%), and diesel (0.11%).

During the quarter, Telangana, Tamil Nadu, and West Bengal added 2.26 GW of coal-based thermal capacity, with Telangana and Tamil Nadu jointly contributing 1.6 GW.

Meanwhile, the cement and steel sectors converted 114 MW of captive thermal capacity into independent power producer (IPP) assets.

The Ministry of Power has released the Draft National Electricity Policy, 2026, aimed at supporting India’s long-term energy transition while ensuring reliable, affordable, and 24×7 electricity supply.

The CEA projects that India’s total installed power capacity will reach 1,121 GW by FY 2036, with the share of fossil fuel-based generation expected to fall from the current 75% to 50%.