India solar generation reaches 10.9% share as grid limits widen

Renewable output faced curtailment as peak demand reached 271GW.

India’s solar generation reached a record 10.9% share of the power mix in the first quarter (Q1) of fiscal year (FY) 2026-27, crossing the 10% mark for the first time, though renewable output faced curtailment as the country recorded peak power demand.

In a quarterly energy snapshot, the Centre for Research on Energy and Clean Air (CREA) said electricity generation rose 9% year on year to 524 billion units (BU) during Q1 FY2026-27, with solar generation increasing 37% to 57 BU.

Peak electricity demand reached a record 271 gigawatts (GW) on 21 May 2026, 12% higher than the peak recorded in Q1 FY2025-26.

“During 61 of the 91 days in Q1 FY2026-27, the daily peak occurred during solar generation hours. Solar's contribution of more than one-fifth of total generation during the system peak demonstrates its growing role in supporting India's daytime electricity demand,” CREA said.

Coal and lignite remained the largest sources of electricity generation, producing 369 BU and accounting for around 70% of total output. However, solar contributed 36% of the increase in electricity generation during the quarter, compared with 11% in Q1 FY2024-25.

India’s installed power capacity reached 549GW by June 2026, with non-fossil fuel sources accounting for about 54% of total capacity. Solar capacity reached 162GW, whilst coal and lignite capacity stood at 231GW.

The rise in renewable generation has increased pressure on grid infrastructure. During Q1 FY2026-27, India curtailed about 186GW of solar generation and 50GW of wind generation due to grid and operational constraints.

“In addition, 422GW of solar and 67GW of wind generation were backed down under the Tertiary Reserve Ancillary Service mechanism,” it added.

Renewable curtailment has increased the need for energy storage to absorb excess generation and support grid stability.

As of May 2026, India had issued tenders for about 272 gigawatt-hours (GWh) of storage capacity, including 142GWh of pumped storage projects and 133GWh of battery energy storage systems. However, only about 7.5GWh of battery storage was operational.

Renewable capacity additions led new power capacity growth in Q1 FY2026-27, with 13GW of renewable energy added compared with 2.26GW of thermal capacity and 0.65GW of large hydro capacity.

The report said continued renewable growth alongside curtailment highlights the need for transmission expansion, grid flexibility, and battery energy storage systems to integrate additional renewable capacity.