Solar Energy Update: India Accelerates Clean Power Transition in December 2025

India’s solar energy sector continues its strong upward trajectory in December 2025, driven by consistent policy support, rising rooftop adoption, and steady progress in domestic manufacturing. The country remains firmly on track toward its long-term clean energy targets while strengthening energy security and reducing fossil fuel dependence.

Capacity expansion and project momentum

Solar capacity additions have remained robust across multiple states, with new utility-scale projects commissioned alongside distributed rooftop systems. Several DISCOMs reported improved grid integration through feeder solarisation and hybrid inverter deployment.

Rooftop and residential adoption

• Higher awareness of net metering and time-of-day tariffs
• Faster approvals under simplified state policies
• Growing interest in battery-ready and hybrid solar systems

Manufacturing and supply chain developments

Domestic manufacturing of modules, inverters, and lithium battery packs expanded further in late 2025. Improved availability of high-wattage panels and efficient inverters helped stabilise pricing and reduced project lead times for EPC vendors.

Agriculture and rural solar progress

• Increased deployment of solar pumps under PM-KUSUM
• Feeder-level solarisation improving power reliability
• Lower operating costs for farmers and rural cooperatives

Outlook for 2026

Industry experts expect continued growth in 2026, supported by storage integration, smart energy management, and improved financing options for households and MSMEs. Digital monitoring, AI-based forecasting, and flexible tariff structures are likely to shape the next phase of India’s solar expansion.