India on Track for Record 50 GW Solar Additions in 2026
August 13, 2026
India’s solar sector is heading towards another record year, with the country expected to add more than 50 GWdc of solar capacity in 2026, according to Wood Mackenzie.
India added around 34 GWdc during the first half of 2026, representing a 38% increase compared with the corresponding period last year. Developers accelerated project commissioning ahead of the implementation of the Approved List of Models and Manufacturers-II (ALMM-II) requirements.
If the forecast is achieved, India’s 2026 additions would surpass the previous annual record of 49 GWdc set in 2025.
The rapid growth, however, comes alongside challenges in India’s domestic solar manufacturing supply chain.
ALMM-II is designed to strengthen India’s domestic solar manufacturing ecosystem by requiring government-supported projects to use modules manufactured with domestically produced cells. However, domestic cell manufacturing capacity has not expanded at the same pace as module manufacturing.
Utility-scale solar system prices in India are expected to increase by around 20% by Q4 2026, while additional domestic manufacturing capacity comes online.
The strong first-half installation numbers were partly driven by developers seeking to complete projects before regulatory deadlines.
Wood Mackenzie expects solar additions to slow during the second half of 2026 as higher module prices and domestic cell shortages create additional pressure on project development.
India’s import dependence is also shifting. While ALMM-II has reduced direct dependence on Chinese solar cells, imports from Southeast Asia have increased. The report notes that India imported 5 GW of wafers and 20 GW of cells during the first five months of 2026.
Around 14 GW of cell manufacturing capacity is currently under construction, while approximately 130 GW of additional cell capacity is expected to come online by 2029.
However, Wood Mackenzie expects supply to remain tight in 2027 because actual production and utilisation may lag behind installed manufacturing capacity.
The report projects domestic cell production at around 29 GW in 2027, compared with estimated annual module demand of approximately 50 GW.
India’s solar story is therefore entering an important transition.
The country is demonstrating strong demand for renewable electricity and continues to add solar capacity at record levels. At the same time, the industry must navigate domestic manufacturing requirements, cell availability, project costs and supply-chain execution.
The next phase of India’s solar growth will depend not only on how quickly projects are commissioned, but also on how effectively the country builds a competitive and reliable domestic solar manufacturing ecosystem.
With additional cell capacity expected through 2029, supply conditions could gradually improve and prices may stabilise over the longer term.
India’s solar market is growing rapidly — but the next challenge is making that growth resilient, cost-efficient and supported by a strong domestic supply chain.
