Solmar Insights
India saw record-setting growth in open-access solar capacity in the second quarter of 2026, with 3 GW of new installations bringing the country’s cumulative total to 36 GW. The first half of the year saw nearly 6 GW added, marking a 42% increase compared to the same period in 2025 as commercial and industrial (C&I) demand accelerated against a shifting regulatory backdrop.
Key figures
3 GW open-access solar added in Q2 2026
36 GW total cumulative open-access solar capacity
6 GW installed in H1 2026, up 42% year over year
Rajasthan accounted for 25% of Q2 2026 additions
Quarter sets new growth record
Open-access solar installations in Q2 2026 represented the highest quarterly increase ever reported in India, according to industry data. The spike was primarily attributed to heightened C&I demand and looming regulatory deadlines. Rajasthan led state-level contributions, representing 25% of quarterly additions, underscoring its position as a central market for utility-scale and industrial renewable projects.
Installations of open-access solar climbed 10% over the previous quarter, signaling momentum among project developers speeding up deployment. The growth comes as organizations pursue greater energy cost certainty and sustainability targets within a continually evolving policy environment.
Cumulative open-access solar capacity nationwide hit 36 GW by the end of June 2026. Karnataka led with 21% of this capacity, followed by Rajasthan and Maharashtra at 16% each, highlighting the enduring concentration of solar development in India’s most industrialized states.
Regulatory drivers and market mechanisms
The open-access solar model in India enables C&I customers to purchase power from off-site solar projects via the nation’s transmission and distribution system, often through third-party power purchase agreements (PPAs), captive, or group-captive arrangements. The economics of these projects depend on a mix of state-level open-access rules, grid charges, banking provisions, and applicable surcharges.
Developers expedited procurement and commissioning ahead of the phase-down of India’s interstate transmission system (ISTS) charge waiver. Sourcing requirements under the Approved List of Models and Manufacturers (ALMM) List-II were another regulatory force: the deadline for ALMM List-II compliance was initially set for the first half of 2026, prompting a rush to commission projects under existing rules before the requirements were later deferred to the end of the year.
Many developers had already adjusted schedules in response to the initial ALMM deadline, completing substantial capacity in the first six months of 2026. The last-minute regulatory extension aided some, but spurred near-term demand concentrated in a narrow window.
State-level concentration and infrastructure impact
Market data highlights how a handful of states continue to dominate India’s open-access solar buildout. The top five states accounted for 77% of the nation’s cumulative capacity, a pattern rooted in the clustering of industrial loads and the early establishment of open-access frameworks in those states. This dynamic has implications for infrastructure development, grid stability, and competition among developers seeking premium off-take arrangements.
Rajasthan’s prominence in Q2 2026, with 25% of national quarterly additions, demonstrates the importance of favorable state policy and robust grid capacity for attracting project sponsors. Meanwhile, Karnataka’s 21% share in total cumulative capacity reinforces the value industrial states place on direct procurement models to reduce power costs and hedge against local distribution company constraints or rate unpredictability.
The concentration of installations poses both opportunities and challenges. While it enables efficient scaling in supportive regulatory environments, it potentially intensifies transmission constraints and local congestion for both existing and future projects.
Cost, policy, and market outlook
Despite the sharp increase in installations, cost pressures, changing banking rules, and evolving open-access and domestic sourcing regulations are complicating project economics. According to sector observers, rising equipment costs, increasing scrutiny of domestic content, and tightening transmission capacity are creating new operational headwinds for developers.
Market participants say continued growth in the open-access segment will be increasingly tied to state governments’ ability to provide regulatory predictability and minimize project risk. The large pipeline of planned projects signals robust future demand, but without stable policy frameworks, there is risk of volatility in deployment rates.
Power procurement via open-access PPAs and group-captive models remains attractive for C&I buyers seeking to lock in lower tariffs and access clean energy. As new regulations take effect and grid charges change, both buyers and developers will need to adapt procurement and investment strategies to align with revised market structures.
Signals for global solar and transmission finance
India’s open-access solar experience provides a useful reference for US market participants watching the growth of C&I green power procurement, especially in deregulated states and organized markets. The interplay of demand, state policy, and grid rules in India closely parallels challenges seen in US ISOs when market participants face meshwork interconnection requirements, state-level incentives, and shifting local surcharges.
Institutional investors, asset managers, and independent power producers considering emerging open-access projects in the US can draw several lessons from these results: the importance of swift regulatory clarity, the risks of delayed or deferred compliance requirements, and the market’s responsiveness to cost and policy triggers. For US buyers, the Indian example underscores the value, but also the fragility, of large-scale C&I power procurement in regions where local and federal priorities periodically compete.
The size of India’s open-access pipeline and its degree of state-level concentration echo dynamics in ERCOT, PJM, and CAISO, where grid headroom, rate arbitrage, and corporate sustainability goals interact directly with RTO policy and local allocation rules.
What this means for buyers
Open-access power and related grid infrastructure are central to industrial and data center procurement in high-demand regions in India and in deregulated US ISO/RTOs. India’s record addition of 3 GW open-access solar in Q2 2026 is a direct response to regulatory and surcharge shifts that accelerated project schedules. US buyers tracking C&I renewable procurement should similarly watch for local regulatory changes and surcharges that can rapidly shift project onboarding and tariff viability in core development states.
Reporting via the original publisher
