India added nearly 119 GW of solar modules and over 9 GW of solar cell capacity in 2025, according to Mercom India’s State of Solar PV Manufacturing in India 2026 report. The manufacturing expansion was driven by demand from India’s large utility-scale solar project pipeline, residential rooftop targets, the PM Surya Ghar program, and the Approved List of Models and Manufacturers List-II domestic cell mandate.

India added nearly 547 MWh of battery energy storage capacity in 2025, around 26% year-over-year (YoY) increase from over 433 MWh, according to the newly released 2H & Annual 2025 India’s Energy Storage Landscape Report by Mercom India Research. India’s cumulative installed battery energy storage capacity reached almost 1,082 MWh as of December 2025.

Savings for commercial and industrial (C&I)  consumers under solar open access narrowed across most states in the fourth quarter (Q4) of 2025 as rising power purchase agreement tariffs and charges drove up landed procurement costs, according to Mercom India’s Q4 and Annual 2025 Solar Open Access Market Report.

India imported solar cells and modules worth over $1.12 billion (~₹100.2 billion) in Q4 2025, a 55.6% YoY increase from $723.4 million (~₹61.1 billion), according to data from the Department of Commerce. In a quarter-over-quarter comparison, module and cell imports together increased by 34.4%, totaling over $837 million (~₹73 billion). Solar module imports rose 51.7%, while cell imports grew 30.5% from Q3 2025.

India added 7.8 GW of solar open access capacity in 2025, the highest addition recorded in any calendar year, according to the Q4 and Annual 2025 Mercom India Solar Open Access Market report. Solar open access installations remained steady in 2025, supported by sustained C&I demand for long-term renewable power procurement. Corporates are increasingly opting for green power procurement to reduce electricity costs and meet sustainability commitments.

India’s battery energy storage sector is expanding rapidly, but a less visible challenge is emerging as projects move from planning to operation: the impact of real-world cycling on battery degradation and long-term economics. Early discussions around battery energy storage systems have focused on installed capacity, tariffs, and capital costs.

India’s battery energy storage market is entering a new phase of growth, but developers are increasingly facing a constraint that traditional project models have not fully captured: heat. In key renewable hubs such as Rajasthan and Gujarat, summer temperatures often exceed 40°C, reaching 48°C during peak periods. In some procurement frameworks, systems are now expected to perform at ambient conditions approaching 50°C.

The Ministry of Power’s (MoP) relaxations, allowing group captive projects to meet the 51% consumption requirement collectively rather than based on the individual proportionality requirement, have raised hopes of increased open access adoption by C&I consumers

The U.S.-Iran war triggered ripple effects on the Indian economy, raising fears of supply chain, shipping, and logistics disruptions across sectors. India’s energy security has been imperiled by the closure of the Strait of Hormuz, through which a quarter of global oil passes. Crude prices had risen above $100 a barrel before settling lower on March 12.

The Office of the United States Trade Representative initiated a Section 301 investigation into structural excess capacity and production in manufacturing, with India among the economies under review. The investigation will examine whether policies or practices in these economies are contributing to structural overcapacity in manufacturing sectors that could distort global markets and harm U.S. commerce.

Trade bodies have sharply criticized the Karnataka Electricity Regulatory Commission’s decision to revise electricity tariffs for FY 2025-26, raising charges for C&I consumers to help bridge a subsidy gap arising from free power for farmers. The decision has revived the long-standing debate over cross-subsidies in India’s electricity sector, where C&I consumers effectively pay higher tariffs to offset subsidies for other categories, such as agriculture and low-income households.

The recent imposition of steep countervailing duties by the U.S. on Indian solar imports is not causing much concern among solar manufacturers, given lower export volumes and their focus on the domestic market.

The U.S. Department of Commerce announced its preliminary determination of countervailing duties of up to 125.87% on crystalline silicon solar cells, whether or not assembled into modules, imported from India.

The government has begun invoking emergency powers under Section 11 of the Electricity Act to direct coal-based thermal power plants to increase generation, given the prevailing demand-supply situation and the expected rise in power demand in the coming months. Earlier this month, the MoP directed Coastal Power Gujarat, a Tata Power-owned company, to generate power at full capacity from April 1 to June 30, 2026.

India aims to cut its emissions intensity by 47% from 2005 levels by 2035, reach 60% of its total installed power capacity from non-fossil fuel sources by 2035, and establish a carbon sink of 3.5 to 4 billion tons of CO₂ equivalent through forest cover by 2035, according to the new Nationally Determined Contribution (NDC) for 2031-2035. The Union Cabinet recently approved the NDC.

The Ministry of New and Renewable Energy (MNRE) extended timelines for financial closure and commissioning of certain projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, providing relief to stakeholders grappling with financing constraints.

The Central Electricity Regulatory Commission brought integrated energy storage systems co-located with coal-, lignite-, or gas-based thermal generating stations and inter-state transmission systems under the tariff framework, creating a clear regulatory path for their approval, cost recovery, operation, and billing.

The MNRE asked the Maharashtra government to withdraw its recent move to restrict the capacity of rooftop solar systems installed by consumers under the PM Surya Ghar: Muft Bijli Yojana. In a departure from the earlier policy, the Maharashtra State Electricity Distribution Company began processing rooftop solar proposals from February 12, 2026, based on average electricity consumption over the past 12 months rather than the approved load/contract demand.

The MNRE called for strengthening its role, considering the rapidly expanding scale and strategic importance of renewables, to give greater institutional clarity for effective administration. The Ministry told a parliamentary standing committee that enacting a separate Renewable Energy Act may not be necessary, as electricity generated from renewables is integrated into the grid and governed by the Electricity Act, 2003.