India’s solar buildout hits 27 GW in H1 2026

In July, India’s rooftop solar programme connected 5.06 lakh households, its strongest month on record. Installations were running at nearly 16,328 a day, up from 5,038 a day in October 2025. The milestone came as the PM Surya Ghar: Muft Bijli Yojana passed 50.06 lakh households on August 4, according to India’s Ministry of New and Renewable Energy.

The rooftop surge is part of a wider buildout. India added a record 27 GW of solar capacity in the first half of 2026, compared with 18 GW in the first half of 2025. Solar supplied 76% of the country’s 36 GW of new power capacity during the period. By June, cumulative solar capacity had reached 165 GW. Gujarat, Rajasthan and Maharashtra led utility-scale additions in the second quarter, while Rajasthan, Gujarat and Karnataka remained the leading states by cumulative utility-scale capacity.

For households, the programme combines direct subsidies, online processing and cheaper credit. Concessional loans at 5.75% have been sanctioned for 21.87 lakh applicants, and 17.5 lakh loan-financed installations have been completed. Net metering — sending surplus electricity to the grid and billing the household on the difference between imports and exports — has helped nearly 19 lakh households reach zero electricity bills. More than 12 lakh households earned Rs 421 crore from surplus power in FY 2024-25.

So, concretely, the change is a faster route from a roof to lower or zero electricity bills, with the programme targeting 1 crore homes rather than only large solar farms. It also creates work for the 29,469 active registered vendors and the more than 2.32 lakh people trained through capacity-building programmes, while digital approvals and subsidy processing reduce paperwork for applicants.

The next challenge is connecting and supplying the projects already being built. Mercom India Research said developers accelerated commissioning ahead of policy changes, including the June 1 implementation of the List-II requirement for solar cells and a scheduled reduction in the ISTS transmission-charge waiver from 75% to 50% in July. But limited transmission availability and domestic cell shortages are leaving some completed projects unable to connect to the grid. The programme’s progress is substantial; its next test is turning that pipeline into connected capacity.