India adds 2.7 GW solar open access in Q1 amidst policy push

Total solar open access capacity reached 32.9 GW.

India added 2.7 GW of solar open-access capacity in the first quarter of 2026, up 55% from 1.7 GW in Q4 2025 and 160% from 1 GW a year earlier, according to Mercom India’s Q1 2026 India Solar Open Access Market Report.

The growth was driven by regulatory push, expected supply constraints, strong state policies, and faster project execution.

A major driver was the upcoming implementation of the Approved List of Models and Manufacturers (ALMM) List-II for solar cells, effective June 2026. Developers accelerated commissioning to avoid higher costs and potential supply shortages linked to domestic sourcing requirements.

“Developers could not risk delays because if the projects have not been commissioned, they would have to forego the benefits of ISTS charges waiver and the ability to procure non-DCR panels,” said Priya Sanjay, Managing Director at Mercom India, said.

Rajasthan led additions with 39% share, followed by Karnataka, Maharashtra, and other key states. The top five states accounted for over 84% of quarterly installations.

India’s cumulative open-access solar capacity reached 32.9 GW as of March 2026, with Karnataka leading overall share (~23%), followed by Maharashtra (~16%) and Rajasthan (~16%).

Market activity remained highly concentrated, with over 86% of new announcements coming from the top five states.

However, the report said that developers may still face supply chain uncertainties and regulatory ambiguity in upcoming quarters.

Some are delaying procurement decisions amidst expectations of possible changes or extensions to ALMM deadlines, with price volatility also emerging during the transition period.

On power exchanges, REC trading surged 285% QoQ, whilst Green Day-Ahead Market activity was led by Adani Green Energy with a 34% share in Q4 2025. Green Term-Ahead Market volumes fell about 40% QoQ.

Odisha emerged as the top procurer in G-DAM, followed by Damodar Valley Corporation and Gujarat.

Demand from commercial and industrial consumers is expected to stay strong as businesses increasingly lock in long-term power purchase agreements for price stability, even as regulatory and supply uncertainties continue, said Sanjay.

She noted that corporations increasingly prefer fixed electricity costs over 10–25 years, even as immediate savings over grid tariffs have narrowed, underscoring sustained demand momentum in the open-access solar segment.