Solar energy: Capacity, manufacturing and rooftop expansion
Author: PPD Team Date: March 1, 2026
India’s solar power capacity reached 135.81 GW as of December 2025, making it the largest non-fossil source in the national grid. Solar has surpassed wind, hydro and nuclear combined. Total installed power generation capacity stood at 513.73 GW, of which 266.79 GW, or 51.93%, came from non-fossil sources.
Capacity growth and national targets
In June 2025, India met its Nationally Determined Contributions (NDC) commitment of 50% cumulative installed electricity capacity from non-fossil fuel sources by 2030. The target was achieved five years ahead of schedule.
By September 2025, overall installed capacity crossed 500 GW. Solar capacity increased from 127.33 GW in September 2025 to 135.81 GW in December 2025, reflecting an addition of over 8.4 GW in one quarter. Total solar additions during 2025 stood at 37,945 MW. As of December 2025, solar accounted for 26.44% of total installed capacity. The next milestone is 500 GW of non-fossil capacity by 2030.
Manufacturing expansion under PLI
The Production Linked Incentive (PLI) Scheme for High-Efficiency Solar Photovoltaic (PV) Modules was launched in April 2021 with an outlay of Rs 24,000 crore. At that time, Approved List of Models and Manufacturers (ALMM)-listed module capacity was 8.2 GW. By December 2025, this had expanded to 144 GW.
Letters of Award have been issued for around 48.3 GW of fully or partially integrated manufacturing capacity across the solar value chain.
Manufacturing has expanded beyond module assembly. Ingot and wafer production has commenced domestically. Fully integrated thin-film solar PV manufacturing has been introduced. Advanced cell technologies such as Heterojunction (HJT) and Tunnel Oxide Passivated Contact (TOPCon) are under commercial deployment.
Solar module exports increased from USD 83 million in FY 2021-22 to USD 1,121 million in FY 2024-25. As of December 2025, the scheme had directly generated employment for approximately 13,600 persons. Installed manufacturing capacity stood at 26.6 GW for modules, 10.5 GW for cells and 2 GW for ingot-wafers.
Rooftop solar under PM Surya Ghar
PM Surya Ghar: Muft Bijli Yojana was launched in February 2024 to promote residential rooftop solar installations. The scheme targets installation in one crore households, adding 30 GW by FY 2026-27, with a government outlay of Rs 75,021 crore.
By January 2026, 22,65,521 rooftop systems had been installed, covering 28,24,518 households. Central Financial Assistance (CFA) of Rs 16,061.12 crore had been disbursed. Around 12.47 lakh households are receiving zero electricity bills each month. More than 8.3 GW of capacity has been added under the scheme.
Subsidies are structured at Rs 30,000 per kWp for the first 2 kWp and Rs 18,000 per kWp for the third kWp, capped at 3 kWp per household. Collateral-free loans are available at the repo rate plus 50 basis points, currently 5.75% per annum, with a tenure of ten years.
Regional progress in Marathwada
Maharashtra’s Marathwada region illustrates how the solar programme is playing out at the sub-state level. Against an assessed solar potential of 8,462 MW, the region has 2,134 MW installed, utilising about a quarter of its potential. The Maharashtra Energy Development Agency (MEDA) is actively advancing new projects, repowering older installations, and integrating battery storage and hybrid systems to make more efficient use of the region’s solar resource.
Policy and procurement framework
Deployment is supported by standard bidding guidelines for tariff-based competitive procurement across solar, wind, wind-solar hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects.
Inter-State Transmission System (ISTS) charges have been waived for solar and wind projects commissioned by June 30, 2025. One hundred per cent Foreign Direct Investment (FDI) is permitted under the automatic route. The Renewable Consumption Obligation (RCO) trajectory, with financial penalties for non-compliance, has been notified through 2029-30.
Renewable Energy Implementing Agencies (REIAs), including the Solar Energy Corporation of India Limited (SECI), National Thermal Power Corporation Limited (NTPC), National Hydroelectric Power Corporation Limited (NHPC) and Satluj Jal Vidyut Nigam Limited (SJVN), had issued Letters of Award for around 69 GW as of December 2025. Power Purchase Agreements (PPAs) had been signed for around 24 GW. Procurement is increasingly focused on dispatchable and solar-plus-storage projects.
Source: Lok Sabha USQs 1889, 1924, 1936, 1997, 2026, 2029, 2058 (11.02.2026); Rajya Sabha USQs 309, 1115 (02–09.02.2026)
The featured photograph is for representation only.
