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India Adds 16.12 GW Renewable Energy Capacity in Q2 2026 Led by Gujarat, Rajasthan, and UP

India expanded its renewable energy infrastructure significantly during the second quarter of 2026 (April to June), adding approximately 16.12 gigawatts (GW) of capacity. According to data compiled by the Institute for Energy Economics and Financial Analysis (IEEFA), this represents a 67.8 per cent year-on-year increase compared to the same period in the previous year, with three states—Gujarat, Rajasthan, and Uttar Pradesh—accounting for more than half of the total additions.

What Happened

During the April–June 2026 quarter, India added 16.12 GW of renewable energy capacity. Although this marked a substantial annual growth, cumulative quarter-on-quarter additions declined by over 15 per cent compared to the record-setting commissioning levels seen in the first quarter of 2026.

Gujarat led the installation figures among large states (those with an installed renewable capacity of 10 GW or more) by adding 4.43 GW during Q2 2026. Rajasthan followed with 2.51 GW, and Uttar Pradesh installed 1.69 GW. Together, these three states contributed over 53 per cent of the quarter’s total renewable energy expansion.

In terms of quarter-on-quarter performance, Uttar Pradesh registered the largest increase among all states, adding 1.32 GW more capacity than it did in Q1 2026. Madhya Pradesh was the only other large state to record quarter-on-quarter growth, with additions rising by 38.4 megawatts (MW). In contrast, installation rates slowed down in other states, including Rajasthan and Tamil Nadu, following strong performances in the preceding quarter.

Key Highlights

  • Total Capacity Additions: India installed roughly 16.12 GW of renewable capacity in Q2 2026, up 67.8 per cent year-on-year.
  • Leading States: Gujarat (4.43 GW), Rajasthan (2.51 GW), and Uttar Pradesh (1.69 GW) accounted for more than 53 per cent of the additions.
  • Solar Dominance: Solar power remained the primary contributor, making up 73.8 per cent of total net capacity additions in Q2 2026, despite a 17.7 per cent quarter-on-quarter drop. Gujarat, Rajasthan, Andhra Pradesh, and Tamil Nadu led utility-scale solar installations.
  • Wind and Hydro: Wind capacity additions remained consistent at approximately 1.48 GW per quarter, led by Gujarat and Maharashtra. Large hydro power was the sole generation source to see a quarterly net capacity increase, growing by about 30 per cent.
  • Conventional Energy: Coal capacity additions dropped by 4.8 per cent quarter-on-quarter during the period.
  • First-Half Performance (H1 2026): Total net new power generation capacity reached 35.13 GW in the first half of 2026 (a 54 per cent increase from 22.82 GW in H1 2025). Renewables made up 87.1 per cent (30.58 GW) of this total, with solar alone accounting for 26.34 GW.

Why This Matters

The first half of 2026 demonstrated a heavy tilt toward clean power generation, with renewables accounting for 87.1 per cent of all new power generation capacity added nationwide. According to IEEFA, the rapid pace of capacity additions highlights the necessity for policy and planning frameworks capable of supporting the clean energy transition while maintaining grid reliability and the financial health of the power sector.

Furthermore, IEEFA highlighted that the expiration of the Inter-State Transmission System (ISTS) charge waiver could influence future project locations. This change may prompt developers to establish projects closer to regional demand centres, potentially leading to a broader, more balanced geographic spread of renewable installations rather than heavy concentration in a few states.

What to Watch Next

Future installation patterns across Indian states will indicate whether project developers shift their investments toward power demand centres following the expiration of the ISTS charge waiver. Additionally, grid operators and policymakers will continue addressing planning frameworks to ensure system stability as renewable energy continues to make up the vast majority of new capacity additions.

Frequently Asked Questions

How much renewable capacity did India add in Q2 2026?

India added approximately 16.12 GW of renewable energy capacity in the April–June 2026 period, representing a 67.8 per cent increase year-on-year.

Which states led the renewable additions in Q2 2026?

Gujarat led with 4.43 GW, followed by Rajasthan with 2.51 GW and Uttar Pradesh with 1.69 GW. Together, they made up over 53 per cent of total capacity additions in the quarter.

What share did solar energy represent in the total additions?

Solar energy contributed 73.8 per cent of the total net capacity additions in Q2 2026 and accounted for 26.34 GW (roughly three-fourths) of the total power capacity added in H1 2026.

Source: Data compiled by the Institute for Energy Economics and Financial Analysis (IEEFA), reported via The Hindu BusinessLine.