India adds record 20.1 GW renewable capacity in Apr-Aug, 123% jump YoY

India added 20.1 GW renewable capacity in April-August FY26, a 123 per cent rise from last year, with ICRA projecting over 35 GW additions this fiscal supported by strong demand

India added 20.1 gigawatt (GW) of renewable energy generation capacity in the first five months (April–August) of the current financial year, a record 123 per cent jump over the 9 GW added in the same period last year.

 

This was driven by a large project pipeline and the expiry of waiver on inter-state transmission charges. Capacity addition is likely to exceed 35 GW in the full fiscal year 2025–26, supported by rising electricity demand, ratings agency ICRA said.

 

The country’s renewable capacity addition rose to 28.7 GW last fiscal compared to 18.5 GW in 2023–24, aided by favourable solar photovoltaic (PV) cell and module prices and the expiry of waiver on inter-state transmission charges from 30 June 2025.

 

“The outlook for the renewable energy sector remains stable, led by strong policy support, superior tariff competitiveness, and sustainability initiatives by large commercial and industrial customers,” the report said. It added that challenges remain on the execution front, including land acquisition, transmission infrastructure, and delays in signing power purchase agreements.

 

The tendering pipeline remains robust with 40.2 GW capacity auctioned in 2024–25, following 47 GW auctioned in 2023–24. However, bidding has slowed over the past few months, with 3.4 GW auctioned in the first half of 2025–26 amid concerns over delays in signing power sale agreements by bidding agencies with state discoms.

 

Overall, renewable energy capacity addition momentum is expected to continue with over 35 GW likely this fiscal, supported by a large project pipeline of 142.8 GW, according to the latest status report from the Central Electricity Authority (CEA), along with favourable module pricing.

 

ICRA also noted that imported N-type module prices remained low at around 8–9 cents per watt in August 2025. “While prices in the Indian market remain high at 15–17 cents per watt owing to the imposition of the Approved List of Modules and Manufacturers (ALMM), they remain attractive for solar power developers based on prevailing bid tariffs,” the agency said.

 

With the reinstatement of the ALMM order for solar PV modules from 1 April 2024, solar module imports declined, while imports of solar cells increased in the first four months of 2025–26 due to significant domestic module capacity addition and stockpiling by developers before the issuance of ALMM List-II for solar cells.

 

Solar cell and module exports rose by 21 per cent year-on-year in the first four months of 2025–26 due to higher US tariffs on South Asian countries compared to India during this period. However, the recent imposition of 50 per cent tariffs by the US on India would adversely affect the competitiveness of Indian manufacturers and in turn export volumes.