Summary:
India added 3,445 MW of solar capacity and 383 MW of wind capacity in August 2026. Residential rooftop installations under PM Surya Ghar expanded, while September tenders highlighted battery storage demand. Renewable generation declined month-on-month, but curtailment also decreased.
How is India's solar and renewable energy capacity expanding?
Indian states recorded fresh solar and wind capacity in August and September 2026, with utility-scale additions concentrated in a few large markets. Residential rooftop installations also increased under the PM Surya Ghar programme.
Utility projects and household solar systems are separate parts of the energy transition. Their reported capacities must be compared using the same category and time period.
Utility-Scale Solar Remains Concentrated
India added about 3,445 MW of solar capacity and 383 MW of wind capacity in August 2026. These additions took cumulative renewable-energy capacity to approximately 295 GW under the reporting definition used in the September sector update.
Gujarat, Karnataka and Rajasthan together accounted for 1,078.66 MW of utility-scale solar additions in August. Their combined contribution represented about 73% of the month's reported 1,472.85 MW in that segment.
Large installations require land, grid connectivity, and project completion approvals. A project may be awarded months before it begins feeding electricity into the grid, so tender announcements should not be counted as installed capacity.
Renewable Energy Update
| Metric | Reported reading |
| Solar added in August | 3,445 MW |
| Wind added in August | 383 MW |
| Residential rooftop capacity | 17,561 MW cumulative |
| Uttar Pradesh, September | 234.46 MW rooftop added |
| September generation | 29,411.06 million units |
Residential Rooftop Growth Across States
Under the PM Surya Ghar scheme, residential rooftop capacity reached a reported cumulative 17,561 MW across 59,47,035 households by September 2026. September additions under the scheme were led by Uttar Pradesh at 234.46 MW, followed by Maharashtra at 208.04 MW and Gujarat at 165.6 MW.
Solar installations on homes differ from large ground-mounted projects. Household systems can reduce grid purchases during daylight hours, while utility-scale projects sell power under contracts and grid arrangements. Upfront cost, subsidy processing and installation quality affect adoption.
Tender Pipeline Includes Energy Storage
The September update recorded 30 renewable-energy tenders across project development and engineering, procurement and construction categories. More than 1,022 MW of project-development tenders covered distributed, rooftop and utility-scale solar.
Standalone battery-energy-storage tenders accounted for a further 575 MW / 1,400 MWh in project-development notices and 1,615 MW / 4,490 MWh in EPC notices. MW measures the power output; MWh measures how much energy a system can store or deliver over time.
Two standalone battery tenders with a combined 2,265 MW / 4,530 MWh were awarded during September. Tender awards expand the pipeline but do not indicate immediate revenue or generation.
Generation and Curtailment Need Monitoring
Renewable electricity generation during September reached 29,411.06 million units, down 16.57% compared with August. Seasonal wind and solar conditions can affect monthly generation even when total installed capacity rises. Variable renewable-energy curtailment fell to 378.52 million units from 667.76 million units in August.
The share of curtailed output declined from 1.89% to 1.28%, a difference of 0.61%.Further progress will depend on grid capacity, commissioning schedules, storage economics and payment discipline. State installation activity provides one measure of execution, while actual generation indicates how the assets are operating.
Sources: September RE sector data
Disclaimer: This article is for informational purposes only and not investment advice.
