India installed solar projects totaling 18 GW in the first half (1H) of 2025, a 31% increase compared to H1 2024, according to the newly released Q2 2025 India Solar Market Update by Mercom India Research. Large-scale solar addition rose 20% year-on-year, up from 12.6 GW in 1H 2024.
The Mercom report attributed the surge in solar project commissioning in H1 2025 to regulatory deadlines. Developers aimed for partial commissioning before June 2025 to secure a 100% waiver on ISTS charges, supported by rising demand from DISCOM for round-the-clock renewable power.
Of the 18 GW added in H1 2025, 11.3 GW was installed in the second quarter—145.4% higher than 4.6 GW in Q2 2024. Rajasthan, Gujarat, and Maharashtra led in terms of large-scale solar capacity additions for the quarter, 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. [However] 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.” said Raj Prabhu, CEO of Mercom Capital Group.
As of June 30, 2025, India’s cumulative installed solar capacity reached 116.4 GW. Large-scale projects accounted for nearly 86% of this total, while rooftop solar contributed approximately 14%. Rajasthan, Gujarat, and Karnataka were the top three states in terms of cumulative installed large-scale solar capacity, accounting for approximately 29%, 18%, and 13% of the country’s installations, respectively.
India’s large-scale solar project pipeline stood at nearly 191 GW, with another over 131 GW of projects tendered and pending auction as of June 2025.
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