India on track for record 50 GW solar capacity in 2026 amid booster for domestic supply chain
New Delhi, Aug 13
India added 34 GWdc of solar capacity in the first half of 2026 -- 38 per cent above the H1 2025 levels -- and the country is on track to record 50 GWdc this year, a new report showed on Thursday.
India is set to commission more solar capacity in 2026 than in any year in its installation history, even as the policy driving that surge simultaneously creates a supply crunch that will push system prices significantly higher, according to new analysis from Wood Mackenzie.
India added 34 GWdc of solar capacity in the first half of 2026 as developers raced to commission projects ahead of the June deadline for the Approved List of Models and Manufacturers-II (ALMM-II).
Full-year additions are forecast to exceed 50 GWdc, surpassing the previous record of 49 GWdc set in 2025, according to the report.
"India's ALMM-II mandate is a bold step toward building a fully integrated domestic solar supply chain, but cell manufacturing capacity has simply not kept pace with modules," said Sureet Singh, Research Analyst, Wood Mackenzie.
The near-term cost impact is unavoidable, and developers will need to navigate a difficult transition period before prices stabilise, Singh added.
The accelerated build-out in the first half this year was further driven by the phased removal of waivers for inter-state transmission charges, which fell from 75 per cent to 50 per cent for projects commissioned from July 2026 onwards and are set to be phased out entirely after July 2028.
Momentum is expected to slow in H2 2026 as cell capacity constraints and rising module prices weigh on project development.
However, ALMM-II waivers granted for net metering and open access projects until December 31, 2026 could provide upside to that figure.
The Ministry of New & Renewable Energy (MNRE) also agreed in July 2026 to waive the mandate for projects approaching completion, requiring applicants to have submitted applications by July 23, 2026.
While ALMM-II has reduced India's direct cell imports from China, sourcing has pivoted toward Southeast Asia, with Indonesian cell imports nearly tripling in early 2026.
In the first five months of 2026, India imported 5 GW of wafers and 20 GW of cells, with wafer imports climbing 86 per cent year-on-year to support domestic cell production, according to the report.
"Prices are expected to stabilise through 2029 as additional cell capacity comes online, but the transition will require policy consistency and timely execution by manufacturers," said Mathew Thomas, Research Analyst, Wood Mackenzie.
— IANS
Reader Comments
Finally, some good news on the renewable front! 50 GW is impressive but we need to ensure that the benefits reach the common man. Electricity prices are still a burden for many households. Also, the government should focus on rooftop solar for homes, not just large-scale projects.
The ALMM-II policy has created a monster—developers are scrambling to beat deadlines while cell makers can't keep up. This transition is going to hurt project economics, and ultimately consumers will pay higher tariffs. The government should have staggered the mandate more thoughtfully.
As someone working in the solar EPC space, let me tell you—the ground reality is messy. Module prices have jumped 15-20% in the last quarter, and projects are getting delayed. But long-term, I believe ALMM-II will create jobs and reduce our dependence on China. We need to weather this storm. 💪
Interesting read. As an investor looking at India's energy market, the policy uncertainty worries me. The ALMM-II waiver for net metering and open access projects is good, but the industry needs clearer long-term signals. India's solar growth story is compelling, but execution will be the key test.
Proud of our progress! 🌞 But here's my concern—are we building enough storage infrastructure? Solar is intermittent, and if we keep adding capacity without batteries or pumped hydro storage, we'll end up with grid instability. Let's be smart about this transition, not just aggressive on numbers.
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