India installed 18 GW of solar projects in the first half of 2025, a 31% increase from the same period in 2024, according to Mercom India Research’s new “Q2 2025 India Solar Market Update” report. Large-scale additions rose 20% year on year, up from 12.6 GW in the first half of 2024.
The report attributed the surge in project commissioning to regulatory deadlines. Developers sought partial commissioning before June 2025 to secure a full waiver on interstate transmission charges, supported by rising demand from distribution companies for round-the-clock renewable power.
Of the 18 GW added, 11.3 GW was installed in the second quarter – 145.4% higher than the 4.6 GW in the same period of 2024. Rajasthan, Gujarat, and Maharashtra led capacity additions, accounting for 33.7%, 27%, and 17.4% of installations, respectively.
“India’s solar installations surged in Q2 with over 11 GW added, making it one of the strongest quarters to date,” said Raj Prabhu, CEO of Mercom Capital Group. “Developers continue to face shortages of DCR-compliant modules, transmission and substation bottlenecks, and delays in PPA signings. Without stronger domestic manufacturing output and balanced policy interventions, installations will remain under pressure and lag behind the expanding pipeline.”
As of June 30, 2025, India’s cumulative installed solar capacity reached 116.4 GW. Large-scale projects made up nearly 86% of the total, while rooftop systems contributed about 14%. Rajasthan, Gujarat, and Karnataka were the top three states for cumulative large-scale capacity, accounting for roughly 29%, 18%, and 13% of installations, respectively.
India’s large-scale solar pipeline stood at nearly 191 GW, with more than 131 GW of projects tendered and awaiting auction as of June 2025.
