The sharp rise in key commodity prices, coupled with a weaker rupee, policy uncertainty, and geopolitical disruptions, is intensifying cost pressures across India’s solar value chain in 2026. Higher input costs are squeezing manufacturers’ margins, while rising module and equipment prices are beginning to weigh on project economics for developers.

Access to finance is becoming less of a barrier for commercial and industrial (C&I) consumers looking to adopt rooftop solar and other renewable energy solutions, as banks expand financing options tailored to different borrower categories. Rising grid electricity tariffs are also strengthening the economics of rooftop solar.

The Ministry of New and Renewable Energy deactivated 66 vendors under the PM Surya Ghar: Muft Bijli Yojana for one month for not clearing their backlog of consumer applications for rooftop solar systems.

The Karnataka Electricity Regulatory Commission expanded net metering for distributed solar photovoltaic projects to all consumer categories and raised the maximum permissible capacity to 1 MW from the 500 kW proposed in its draft regulations.

The Gujarat Electricity Regulatory Commission reduced the banking charge for green energy open access consumers to ₹1 (~$0.011)/kWh from September 1, 2026, to March 31, 2027.

Tamil Nadu plans to increase renewable energy to 50% of its power mix by 2031, backed by new solar and wind capacity, battery energy storage systems, pumped storage projects, transmission upgrades, and additional incentives for rooftop solar.

REC Power Development and Consultancy announced the winner of the interstate transmission system (ISTS) project to evacuate 14 GW of renewable energy in Gujarat.

PFC Consulting announced the winner of the auction to develop an ISTS for a network expansion near Satara in Maharashtra, to support the evacuation of 4,500 MW of pumped storage capacity.

NTPC Green Energy invited bids to engage a qualified coordinating agency for forecasting and scheduling services for its 296 MW Fatehgarh solar project in Rajasthan. The last date to submit bids is August 28, 2026.

The Asansol Division of the Eastern Railway invited bids to install grid-connected rooftop solar systems with a total capacity of 1,500 kW under the renewable energy program. The last date to submit bids is September 29, 2026.

South Central Railway’s (SCR) Secunderabad division has installed rooftop solar systems with a cumulative capacity of 2.5 MW across 30 locations. Encouraged by the savings in power costs, SCR has planned to add capacity across other locations soon.

Wind turbine manufacturer Senvion India secured an additional $100 million (~₹9.53 billion) in direct capital funding from Alfanar Group to support its technology development, manufacturing operations, business growth, and project pipeline.

Australia issued a tender to add around 1.8 GW of renewable generation capacity in Western Australia’s Wholesale Electricity Market, under its Capacity Investment Scheme. The last date to submit bids is October 22, 2026.

Seven companies won Japan’s 29th solar power auction for projects of at least 250 kW, securing 38.2 MW out of the total auctioned capacity of 115 MW under the feed-in premium program.