India’s installed solar power capacity has grown exponentially since 2014, rising from just 2.8 GW in 2014-15 to about 127.33 GW as of September 30, 2025, according to the Ministry of New and Renewable Energy (MNRE). This accounts for over 51.5 per cent of the total installed renewable capacity. Of this, ground-mounted projects contribute around 97.15 GW, representing about 76 per cent of the total solar installations.
This growth reflects a well-coordinated effort involving both public and private stakeholders. Ground-mounted solar has played a pivotal role in driving India closer to its renewable energy targets. Meanwhile, floating solar and solar-storage hybrid projects have emerged as promising solutions to the challenges of land scarcity and grid variability respectively.
Indian Infrastructure presents an overview of India’s utility-scale solar market, encompassing ground-mounted solar projects, floating solar, solar parks and solar-storage projects. It also takes stock of the ongoing developments in this space, tariff trends, the challenges faced and the path forward…
From ambition to action: Big leap forward by utility-scale solar
Over the past few years, utility-scale solar has shown consistent and promising growth, driven by strong investors, willing off-takers, an enthusiastic developer base, timely regulatory interventions, favourable cost economics, and a transparent and competitive bidding mechanism, among others.
According to the MNRE, India added 23.8 GW of solar capacity in 2024-25, with the bulk of this addition (16.59 GW) coming from ground-mounted projects. The momentum has continued into the current fiscal, with 21.68 GW added in just six months (April-September 2025), of which 16.14 GW was from ground-mounted projects.
Rajasthan, Gujarat, Karnataka and Tamil Nadu are among the states that have consistently driven utility-scale installations over the years.
The project pipeline also remains strong. As per the Central Electricity Authority, as of June 30, 2025, a total of 91.39 GW of utility-scale capacity is under execution, of which 2.64 GW has already been commissioned and 84.42 GW is under construction.
Some of the developers that have emerged as key players driving capacity additions in the utility-scale solar segment are ReNew, NTPC Renewable Energy Limited, Juniper Green Energy, Avaada, Adani and ACME. The execution of large-scale projects has been supported by leading engineering, procurement and construction (EPC) contractors such as Jakson Green, Tata Power Solar, the Hartek Group, L&T Construction, Sterling & Wilson Renewable Energy Limited and Vikram Solar. These developers and EPCs have played critical roles in accelerating project completion over the past year.
This concerted effort is evident in the recent wave of project commissioning. In September 2025, NTPC operationalised 167 MW of a cumulative 245 MW capacity at the Nokh Solar Park in Rajasthan and 25 MW of a 37.5 MW project in Bhuj, Gujarat. In the same month, ACCIONA Energia commissioned a 412 MW solar project in Juna, Rajasthan. By October 2025, further additions have been made, including Adani Green Energy’s 50 MW project at Khavda, Gujarat. SJVN Green Energy also brought online 128.88 MW of its 1 GW Bikaner solar project.
This expansion can be attributed to an active auction pipeline, increasingly attractive cost economics and the discovery of low tariffs in the utility-scale solar segment.
In 2024-25, 11 auctions were conducted. The lowest utility-scale solar tariffs discovered in the tenders ranged from Rs 2.48 per kWh (Solar Energy Corporation of India Limited’s [SECI] Tranche XVI 1.2 GW auction, conducted in August 2024) to Rs 3.04 per kWh (SECI’s Tranche XVIII 1 GW auction, conducted in December 2024).
Overall, the large-scale project auctions and announcements signal strong progress. However, timely and effective implementation is important. Several challenges persist, including bottlenecks in land acquisition, constraints in grid evacuation, and grid stability concerns given the intermittency of solar energy. Addressing these requires a mix of technical and policy measures: strengthening transmission infrastructure, expanding utility-scale storage and enabling flexible thermal generation.
Weak renewable purchase obligation (RPO) enforcement and inefficient power procurement and management practices of a few discoms have further hindered progress. States must plan for adequate resources, publish periodic RPO compliance data and adopt phased strategies for discoms to exit costly thermal power purchase agreements. Additionally, diversifying solar deployment beyond a few high-capacity states will be vital to mitigate congestion risks and ensure grid stability.
Solar parks: Scaling up deployments
To accelerate the deployment of utility-scale solar projects and achieve cost efficiencies through large-scale integration, the MNRE introduced the Development of Solar Parks and Ultra Mega Solar Power Projects scheme in 2014. The scheme, revised subsequently in 2017, aims to build a cumulative capacity of 40 GW by FY 2026 (up from the initial 20 GW target). It is focused on the development of solar parks ranging from 0.5 GW to 1 GW, with flexibility for smaller or larger capacities depending on terrain and state-specific policies. The majority of the ground-mounted solar capacity additions since 2016 can be attributed to this initiative.
According to the Press Information Bureau, as of August 6, 2025, 53 solar parks with a combined capacity of around 39,323 MW have been approved across 13 states. Of these, 18 parks (10,856 MW) are fully developed, with 10,756 MW already commissioned. Another eight parks (10,043 MW) host 3,140 MW of operational solar projects. In total, 13,896 MW of solar capacity is operational across 26 solar parks, while the remaining parks are under development.
Floating solar: A growing market, but implementation challenges remain
India’s floating solar journey began in 2015, marking the start of substantial growth in this domain.
But while the floating solar market is growing, with an increasing number of tenders being issued, the commissioning landscape paints a more cautious picture. Despite the proliferation of tenders, their rate of conversion into successful auctions and project commissioning remain relatively low. In recent years, only a few auctions have reached completion, such as Madhav Infra Projects securing a 15 MW NTPC-SAIL project in Chhattisgarh (May 2024) and L&T winning a 100 MW SECI project in Jharkhand (March 2024). Earlier, developers such as SJVN Limited, NTPC and Hinduja Renewables won projects in Madhya Pradesh.
Notably, only a handful of projects have been commissioned since 2024-25. These include SJVN’s 90 MW floating solar project at Omkareshwar, Madhya Pradesh, commissioned in August 2024; Tata Power Renewable Energy Limited’s 126 MW project at the same site in November 2024; and a 15 MW floating solar project at the Maroda-1 reservoir of Bhilai Steel Plant in Chhattisgarh, commissioned by a joint venture of Steel Authority of India and NTPC-SAIL Power Company in October 2025. These developments indicate that a significant gap still exists between auction awards and actual project commissioning, highlighting ongoing execution challenges.
To achieve large-scale deployment, several critical hurdles must be overcome. The absence of clear policies and incentives; lack of standardised water rights agreements; limited expertise in floater, anchoring and mooring system design; and higher upfront costs compared to ground-mounted projects remain major barriers. Environmental considerations, particularly potential impacts on water quality and aquatic ecosystems, add to the complexity.
The segment’s challenges are compounded by the need for multi-agency approvals, the limited availability of specialised equipment and trained personnel, and a smaller domestic manufacturing base. Addressing these issues through targeted research and development, detailed site studies, capacity building, and a coherent policy and regulatory framework will be crucial for translating the current momentum into sustainable growth.
Increased focus on grid stability: Solar plus storage adoption accelerates
With solar plus battery storage systems emerging as the go-to solution for consistent, green and economically viable power, the energy landscape is being reshaped. The year 2024-25 has been marked by a significant adoption of solar-plus-battery energy storage systems (BESSs). The Ministry of Power notified an advisory on co-locating energy storage and solar systems to enhance grid reliability. As per the advisory, renewable energy implementing agencies and state utilities have been advised to include a minimum two-hour co-located energy storage system, equivalent to 10 per cent of the installed solar capacity, in future solar tenders. Additionally, distribution licensees have been advised to consider a two-hour storage requirement for rooftop solar installations to enhance supply reliability and reduce over-injection during peak solar hours. Implementing this storage clause could add approximately 14 GW/28 GWh of storage by 2030, aided by the recent decline in battery prices, potentially lowering power purchase costs during high-demand evening hours.
While such tenders have been in place since 2018, they were initially focused on replacing diesel generators in remote and island regions. Over time, however, the application scope of such projects has broadened considerably. Today, battery-integrated tenders are not only addressing diesel generator offset (33 per cent), but are increasingly catering to peak demand management (43 per cent) and supporting overall renewable energy integration (24 per cent), as per the India Energy Storage Alliance. Further, this segment has witnessed remarkable expansion. The total number of projects has grown from 14 during FY 2018-FY 2023 to 23 in the two-year span from FY 2024 to October 15, 2025, bringing the cumulative count to 37 projects. Of these, five projects are operational, eight are at the tendering stage, bids have closed for two, six have been awarded, eight are under construction, five have been cancelled and three are at the notice-inviting-tender stage. So far, around 26.12 GWh of energy storage systems along with 15.5 GW of solar have been tendered, with a notable 15.2 GWh being issued in 2025 alone and 9.8 GWh in 2024-25.
In 2024-25, seven auctions have been conducted in this space. The lowest tariff discovered so far is Rs 2.70 per kWh in RUMSL’s 600 MW solar with 880 MWh BESS auction, conducted in September 2025. The highest tariff of Rs 3.52 kWh was witnessed in SECI’s 2 GW solar with 4 GWh of BESS (Tranche XVII) (four hours of peak supply) auction, conducted in December 2024. Furthermore, categorised by peak supply duration, tariffs have been in the range of Rs 3.09–Rs 3.41 per kWh for two-hour peak supply, Rs 2.86–Rs 3.52 per kWh for four-hour peak supply, and Rs 2.70 per kWh for four-hour, two-cycle supply with one charging by the discom. Overall, tariffs for solar-plus-storage projects have shown a gradual downward trajectory, even as the share and duration of the BESS component continue to increase, signalling growing maturity, scale efficiencies and investor confidence in India’s evolving renewable-plus-storage market.
From promise to progress: Utility- scale solar leads the way
Solar has played a pivotal role in India’s renewable energy sector. While each renewable technology presents its own set of advantages and challenges, the overall outlook for solar remains highly optimistic. The solar power segment is expected to sustain its impressive growth momentum, with energy storage and hybrid solutions set to play a key role in ensuring the reliability of solar supply.
The utility-scale solar segment is witnessing exciting developments, with major auctions and project announcements creating a robust project pipeline for the near future. Net, net, the solar segment is well-positioned to lead the renewable charge, driving India closer to its clean energy targets.
Sakshi Bansal
