May, 21: In the first quarter of 2026, India added 2.7 gigawatts (GW) of solar open access capacity, up 55% quarter-over-quarter (QoQ) compared to 1.7 GW in Q4 2025, marking the second-highest quarterly additions on record. Installations were also up 160% year-over-year (YoY) compared to 1 GW in Q1 2025, according to Mercom India’s newly released report: Q1 2026 India Solar Open Access Market.
The strong installation activity during the quarter was driven by a combination of regulatory and market factors. The upcoming transition to ALMM List-II-compliant solar cells and modules pushed developers to accelerate project execution to meet new requirement, amid concerns over supply shortages and rising procurement costs. Additional growth drivers included supportive state policies, shorter approval timelines, and stronger market outreach.
“Regulatory constraints across several states are gradually narrowing the savings from procuring green power through open access. While consumers may now have to accept comparatively lower savings, many still value the long-term price certainty offered under power purchase agreements. At the same time, supply-chain disruptions, rising component prices driven by geopolitical tensions, land availability challenges, transmission infrastructure constraints, and evolving regulations are increasing pressure on project costs,” commented Priya Sanjay, Managing Director at Mercom India.
In Q1 2026, Rajasthan led solar open access capacity additions, accounting for 39% of installations. The top five states accounted for 84% of the country’s total installations, highlighting the continued concentration of activity in a few high-demand markets.
As of March 2026, cumulative installed solar open access capacity stood at 32.9 GW.
Karnataka retained its leading position, accounting for 23% of cumulative installed capacity as of March 2026. Maharashtra and Rajasthan ranked second and third, contributing 16% of cumulative installations each. The top five states accounted for 77% of India’s cumulative installed solar open access capacity.
The top five states together account for 86% of projects in the pipeline.
In Q4 2025, Adani Green Energy was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for 34% of electricity sold. Odisha was the leading procurer from G-DAM, followed by Damodar Valley Corporation and Gujarat.
The cleared volume of Renewable Energy Certificates (RECs) traded on the Indian Energy Exchange (IEX) rose 285% QoQ.
The volume traded in the Green Term-Ahead Market (G-TAM) on IEX decreased 40% QoQ.
This report provides a detailed analysis of the solar open access market, retail electricity tariffs, PPA prices, and open access charges and costs across thirteen major states.
Key Highlights from Mercom’s Q1 2026 India Solar Open Access Market Report
-
In Q1 2026, 2.7 GW of solar open access was added, an increase of 55% QoQ and 160% YoY
-
Rajasthan was the leading state, accounting for 39% of solar capacity additions in Q1 2026
-
The top five states accounted for 84% of installations in Q1 2026
-
As of March 2026, cumulative installed solar open access capacity was 32.9 GW
-
The top five states contributed 86% of the solar open access project pipeline
