India's Solar Surge: 18 GW Installed in H1 2025

• India's solar surge: 18 GW installed in H1 2025, up 31%! Hybrid projects and robust rooftop growth drive the energy revolution, despite ongoing challenges.

India installed 18 gigawatts of solar power in the first half of 2025, marking a 31% increase from the same period in 2024, according to Mercom India Research. This growth was driven by both utility-scale projects and a robust rooftop segment, supported by state-level procurement, agri-feeder programs, and corporate power purchase agreements. The trend towards hybrid projects, combining photovoltaic systems with batteries, is helping to manage midday generation and evening peak demands, which is crucial as solar's share in the energy mix rises.

Despite the progress, challenges persist, including interconnection studies, transformer lead times, and module sourcing amid global price fluctuations and changing import rules. Financing costs also impact project timelines, with standardized designs clearing faster than custom builds. The second half of 2025 will test India's execution capacity, as large state tenders and improved rooftop economics require efficient mobilization by EPCs, streamlined local authority permissions, and effective supply management to meet commissioning deadlines before policy changes.

What Factors Drove India's 31% Solar Growth in Early 2025 Despite Ongoing Challenges?

• Government incentives and policy support, including subsidies and tax benefits, have encouraged investment in solar energy.
  
• Increased foreign direct investment and partnerships with international solar companies have boosted project development.
  
• Technological advancements in solar panel efficiency and energy storage solutions have made solar projects more viable.
  
• Expansion of solar manufacturing capacity within India has reduced dependency on imports and mitigated supply chain disruptions.
  
• Public awareness and demand for clean energy have driven both residential and commercial adoption of solar solutions.
  
• Improved grid infrastructure and integration capabilities have facilitated the incorporation of solar power into the national grid.
• Strategic collaborations between public and private sectors have accelerated project approvals and implementation.
  
• Enhanced training programs and workforce development initiatives have addressed skill gaps in the solar industry.
  
• Regional cooperation and knowledge exchange with other solar-leading countries have provided valuable insights and best practices.
• The Indian government's commitment to international climate agreements has reinforced the focus on renewable energy targets.