India Set To Emerge As World’s 2nd Largest Solar Market In 2026: NSEFI

India is poised to become the World’s second-largest solar market in 2026 in terms of annual installation, the National Solar Energy Federation of India (NSEFI) said on Wednesday.

India has achieved its fastest-ever addition of 50 GW of solar capacity in just 14 months, reaching the landmark 150 GW milestone, according to an NSEFI statement.

This marks a significant acceleration compared to the 11 years it took to reach the first 50 GW, followed by nearly three years to scale up to 100 GW.

NSEFI CEO Subrahmanyam Pulipaka said that solar energy is projected to reach 280–300 GW to support India’s 500 GW non-fossil capacity target by 2030.

With the current pace, India is nearing an annual addition trajectory of 50 GW, firmly aligning with this goal.

In fact, the country is witnessing strong potential for solar capacity to exceed these projections, driven by initiatives such as PM Surya Ghar, the upcoming PM KUSUM 2.0, dedicated floating solar policies, and the growing demand linked to the National Green Hydrogen Mission over the next four years, Pulipaka noted.

Amid shifting geopolitical dynamics, NSEFI projected that India is well on track to become the world’s second-largest solar market in 2026 in terms of annual installations.

Global trends point to a potential slowdown in capacity additions across major markets, such as the United States and the European Union, which are currently competing for the second position in terms of annual installed capacity, it noted.

In contrast, India continues to accelerate its renewable energy deployment and consistently outpaces key milestones and is set to emerge as a nation with the second-largest annual installations in the coming year, Pulipaka added.

NSEFI highlights that Distributed Renewable Energy (DRE) and Commercial & Industrial (C&I) solar adoption will be the key drivers of growth over the next three years.

"The C&I segment has surpassed expectations, crossing double-digit annual installations of nearly 10 GW for the first time, and this is just the beginning. Policy enablers, such as Green Energy Open Access, Virtual Power Purchase Agreements (VPPAs), and the Renewable Consumption Obligation (RCO) framework, are unlocking substantial demand. Within the next two years, we expect C&I capacity additions to rival those under utility-led PPAs," Pulipaka noted.

Flagship government programmes, such as PM Surya Ghar and PM KUSUM, have significantly boosted DRE adoption.

While DRE currently accounts for nearly 20% of India’s installed solar capacity, NSEFI projects this share to increase to 35% by 2030.

On the manufacturing front, India has made considerable strides.

Supported by Production-Linked Incentive (PLI) schemes, the Approved List of Models and Manufacturers (ALMM) and Basic Customs Duty (BCD) measures, the country has established strong domestic capabilities in module manufacturing and is rapidly progressing towards self-reliance in solar cells.

NSEFI emphasises that the next phase of growth will hinge on strengthening upstream supply chains from wafers and ingots to polysilicon and quartz.

Looking ahead, 2026 is expected to mark a phase of integrated clean energy growth for India.

Alongside solar and wind expansion, energy storage will play a critical role.

The NSEFI forecasts that India will achieve double-digit energy storage capacity within the next 18 months.

"Recent policy and regulatory interventions, including viability gap funding (VGF) and provisions for non-solar hour connectivity, have laid a strong foundation. Over the next 12 to 18 months, we anticipate a significant acceleration in energy storage deployment," Pulipaka concluded.