NSEFI: India Set to Be 2nd-Largest Solar Market in World by 2026

NSEFI Says India Poised to Become the World’s Second-Largest Solar Market in 2026

India Adds 50 GW in Just 14 Months, Crosses 150 GW Milestone

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India has achieved its fastest-ever addition of 50 GW of solar capacity in just 14 months, reaching the landmark 150 GW milestone. This marks a significant acceleration compared to the 11 years it took to reach the first 50 GW, followed by nearly three years to scale up to 100 GW.

Solar Capacity Growth Outlook

Commenting on this achievement, NSEFI CEO Subrahmanyam Pulipaka said solar energy was projected to reach 280–300 GW by 2030. Moreover, this target supports India’s 500 GW non-fossil capacity goal. With the current pace, India is nearing an annual addition trajectory of 50 GW, aligning with this goal. Furthermore, he said solar capacity could exceed projections due to PM Surya Ghar and upcoming PM KUSUM 2.0. Additionally, dedicated floating solar policies and demand from the National Green Hydrogen Mission will drive growth over four years.

India’s Global Solar Position

Amid shifting geopolitical dynamics, NSEFI projects that India is well on track to become the world’s second-largest solar market in 2026 in terms of annual installations.

“Global trends point to a potential slowdown in capacity additions across major markets such as the United States and the European Union, which are currently competing for the second position in terms of annual installed capacity. In contrast, India continues to accelerate its renewable energy deployment and consistently outpace key milestones and will emerge as nation with 2nd largest annual installations in the coming year. India’s success offers critical lessons for both developed and developing economies,” Pulipaka added.

Drivers Of Solar Growth

NSEFI highlights that Distributed Renewable Energy (DRE) and Commercial & Industrial (C&I) solar adoption will be the key drivers of growth over the next three years.

C&I Segment Expansion Outlook

“The C&I segment has surpassed expectations, crossing double-digit annual installations of nearly 10 GW for the first time—and this is just the beginning. Policy enablers such as Green Energy Open Access, Virtual Power Purchase Agreements (VPPAs), and the Renewable Consumption Obligation (RCO) framework are unlocking substantial demand. Within the next two years, we expect C&I capacity additions to rival those under utility-led PPAs,” Pulipaka noted.

Boost To Distributed Energy

Flagship government programmes such as PM Surya Ghar and PM KUSUM have significantly boosted DRE adoption. While DRE currently accounts for nearly 20% of India’s installed solar capacity, NSEFI projects this share to increase to 35% by 2030.

Advances In Solar Manufacturing

On the manufacturing front, India has made considerable strides. Supported by Production Linked Incentive (PLI) schemes, the Approved List of Models and Manufacturers (ALMM), and Basic Customs Duty (BCD) measures, the country has established strong domestic capabilities in module manufacturing and is rapidly progressing towards self-reliance in solar cells.

Focus On Supply Chains

NSEFI emphasises that the next phase of growth will hinge on strengthening upstream supply chains—from wafers and ingots to polysilicon and quartz.

Energy Storage Growth Outlook

Looking ahead, 2026 is expected to mark a phase of integrated clean energy growth for India. Alongside solar and wind expansion, energy storage will play a critical role. NSEFI forecasts that India will achieve double-digit energy storage capacity within the next 18 months.

Policy Push For Storage

“Recent policy and regulatory interventions, including viability gap funding (VGF) and provisions for non-solar hour connectivity, have laid a strong foundation. Over the next 12 to 18 months, we anticipate a significant acceleration in energy storage deployment,” Pulipaka concluded.

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