Archive · 30 Jul 2026
India’s Solar Boom Faces Regional and Manufacturing Challenges
India’s solar power has grown a lot, reaching 157 gigawatts of installed capacity.
In 2025-26, it added a record 44.6 gigawatts.
Most of this power is in just seven states, because those places have good land and sunlight.
But the factories that make solar panels have built a lot more capacity than the country needs, so many plants are not used fully.
Experts say the government should help spread projects to other states and make it easier to get land and power lines.
They also warn that only the biggest, most advanced companies will survive if the market stays crowded.
India’s installed solar capacity reached 157 GW, with a record 44.61 GW added in 2025‑26.
Seven states hold about 85% of total capacity, driven by land and grid constraints.
Domestic module manufacturing capacity is ~210 GW, far above the 40‑45 GW annual demand, causing a supply glut.
Experts recommend state‑specific tenders, solar parks in under‑represented states, and land‑neutral solutions to balance geographic spread.
Industry consolidation is expected as technologically advanced, vertically integrated manufacturers survive pricing pressures while older‑tech firms face margin compression.
- Who
- Indian solar industry stakeholders and experts
- What
- Challenges of regional disparity and manufacturing overcapacity
- When
- 2025-26 record addition, current situation
- Where
- India, seven states
- Why
- Land acquisition, grid constraints, rapid capacity expansion outpacing demand
- Installed capacity (GW)
- 157
- Annual addition 2025-26 (GW)
- 44.61
- Regional concentration
- 7 states, 85%
- Module manufacturing capacity (GW)
- 210
- Annual demand (GW)
- 40-45