India’s solar photovoltaic (PV) sector continues to expand rapidly, strengthening its role as the country’s main renewable energy growth engine. According to the latest Ministry of New and Renewable Energy (MNRE) data, India’s installed solar capacity reached 168.04 GW as of August 31, 2026, including 123.99 GW of ground-mounted projects, 32.59 GW of grid-connected rooftop solar, 4.83 GW of solar components in hybrid projects and 6.63 GW of off-grid installations.
Solar capacity increased by 17.78 GW between April and August 2026, while 3.45 GW was added during August alone. The latest capacity figures underline the accelerating deployment of utility-scale, rooftop and hybrid solar projects across the country.
The broader renewable energy sector is also expanding. India’s total renewable energy capacity, including large hydro, stood at about 295.55 GW at the end of August, while total non-fossil capacity, including nuclear power, reached approximately 304.33 GW. Solar therefore remains the largest contributor to India’s renewable capacity base.
Domestic manufacturing is emerging as another important part of India’s solar PV expansion. The capacity enlisted under the Approved List of Models and Manufacturers (ALMM) for solar PV modules has crossed 200 GW, according to the Ministry of New and Renewable Energy. The government has also expanded the ALMM framework to solar PV cells, while an ALMM framework for ingots and wafers is scheduled to take effect from June 2028.
The Production Linked Incentive (PLI) scheme, with an approved outlay of ₹24,000 crore, is supporting the development of high-efficiency solar PV manufacturing capacity and aims to reduce dependence on imports.
Rooftop solar is also gaining momentum through the PM Surya Ghar: Muft Bijli Yojana. By August 2026, more than 51 lakh households had benefited from rooftop installations, with around 14.8 GW commissioned under the programme.
The next phase of India’s solar PV growth is increasingly linked with energy storage, hybrid projects, floating solar and round-the-clock renewable power. The government has also approved the Pradhan Mantri Surya Sarovar Yojana, targeting 5 GW of floating solar capacity supported by energy storage.
With solar deployment accelerating, India’s focus is shifting from capacity addition alone toward stronger domestic manufacturing, grid integration and storage. Transmission expansion, land availability, financing and managing variable generation will remain important challenges as the country continues building a larger and more flexible solar-powered electricity system.

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