India’s renewable energy landscape continued to evolve in the second quarter (Q2) of 2026, with policy measures placing greater emphasis on grid integration, domestic manufacturing, transmission planning, energy storage, and regulatory compliance as the country prepares for the next phase of renewable energy growth, according to Mercom India’s newly released Q2 2026 Renewable Energy Policy Impact Report.

India’s renewable energy sector attracted foreign direct investment (FDI) inflows of $3.02 billion (~₹264.12 billion) during the financial year (FY) 2026. Although this represents a 24.8% decline from the record $4.01 billion (~₹337.97 billion) in FY 2025, it is still the second-highest annual inflow since FY 2011.

The Ministry of New and Renewable Energy (MNRE) issued an advisory to distribution companies (DISCOMs) and electricity departments recommending that they allow a capacity tolerance of up to 10% in the direct current capacity of rooftop solar systems installed under PM Surya Ghar: Muft Bijli Yojana.

MNRE said it received several complaints about incorrect electricity bills issued by DISCOMs following the installation of residential rooftop solar systems. The complaints are being followed up with the DISCOMs for resolution, Minister of State for New and Renewable Energy and Power Shripad Yesso Naik said in the Rajya Sabha.

MNRE said DISCOMs may use funds remaining with them under the ‘Incentives to DISCOMs’ component of the PM Surya Ghar: Muft Bijli Yojana program for battery energy storage projects and installing rooftop solar systems on their buildings.

The Uttarakhand Electricity Regulatory Commission rejected Uttarakhand Jal Vidyut Nigam’s petition seeking restoration of the earlier benchmark capacity charge for standalone battery energy storage system projects. The Commission ruled that tariffs for viability gap funding-backed projects must be discovered through competitive bidding and adopted by the Commission.

India curtailed 8,133 GWh of solar power during the second quarter of 2026 to maintain grid security, according to MNRE. Responding to a question in the Rajya Sabha, Minister of State for New and Renewable Energy and Power, Shripad Yesso Naik, said that solar power curtailment and restrictions were being implemented based on information provided by the Grid Controller of India.

In an interview on the sidelines of the Mercom India Renewables Summit 2026 on July 1 and 2 in New Delhi, Srivatsa, General Manager, Sales and Technical Operations at GenX PV, shared his insights on localization, backward integration, domestic manufacturing, policy support, and the future of India’s solar component ecosystem.

The Godavari Marathwada Irrigation Development Corporation invited expressions of interest for the development, operation, maintenance, and management of a 200 MW floating solar project with a co-located battery energy storage system at the Purna Project reservoir in Hingoli district, Maharashtra. The last date to submit bids is August 11, 2026. Bids will be opened the next day.

Mahagenco Renewable Energy, a wholly owned subsidiary of Maharashtra State Power Generation Company, invited expressions of interest for offtake of green hydrogen and green ammonia from its production facility at Uran in Maharashtra’s Raigad district. The last date to submit bids is August 31, 2026.

The Asian Development Bank approved an $850 million loan to support reforms that will fast-track the rollout of the Indian government’s flagship rooftop solar program, the PM Surya Ghar: Muft Bijli Yojana. The loan is part of ADB’s subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development program.

Gurgaon-based independent power producer ACME Solar Holdings secured a ₹34.05 billion (~$356 million) long-term project financing loan from Power Finance Corporation for its 250 MW firm and dispatchable renewable energy project, spread across Gujarat and Rajasthan. The loan has a 19-year repayment tenure and will finance the development and construction of the ACME Urja One Phase III project.

The board of Mumbai-based Transrail Lighting, an engineering, procurement, and construction company focused on power transmission and distribution infrastructure, approved a proposal to raise up to ₹6 billion (~$62.72 million) through a qualified institutional placement of shares.

Tata Power reported revenue of ₹188.98 billion (~$2 billion) in Q1 of FY 2027, an 8.2% year-over-year (YoY) increase from ₹174.64 billion (~$1.82 billion). Earnings before interest, taxes, depreciation, and amortization rose 8.1% YoY to ₹42.49 billion (~$443.46 million) from ₹39.3 billion (~$410.17 million).