India solar installation 2025 sets new record: A significant leap forward
In the first quarter of 2025, India installed a record-breaking 5.93 GW of utility-scale solar capacity, according to Mercom Capital Group. This impressive surge represents a 173% increase compared to the previous quarter and a 36% rise from the same period in 2024. The rapid growth in solar installations is attributed to developers rushing to complete projects ahead of the Basic Customs Duty (BCD) exemption deadline, which expired on March 31, 2025.
The BCD exemption allowed developers to import solar cells and modules without additional duties, significantly reducing project costs and making solar projects more financially viable. As the deadline approached, developers accelerated their efforts to complete installations, resulting in this record-breaking capacity addition.
For further insights, read about India’s solar capacity growth in Q1 2025: Stunning 6.7 GW Added.
State-wise breakdown of India solar installation 2025
During this period, Rajasthan emerged as the leading state in solar installations, adding an impressive 2.8 GW of new capacity, accounting for nearly 47% of the total installations in the quarter. Uttar Pradesh followed with 1.5 GW, while Gujarat added 1.2 GW of new solar capacity. These three states alone contributed more than 90% of the total utility-scale solar capacity installed in Q1 2025.
Rajasthan’s dominance in solar installations can be attributed to its vast desert landscapes, which provide ample space for large-scale solar farms. Additionally, the state’s proactive policies and incentives for renewable energy have attracted significant investments from both domestic and international developers. Uttar Pradesh and Gujarat, meanwhile, have been focusing on expanding their renewable energy portfolios to meet growing energy demands and reduce reliance on fossil fuels. This aggressive push aligns with India’s broader renewable energy targets, which aim to achieve 500 GW of non-fossil fuel-based energy by 2030.
How BCD exemption shaped India solar installation 2025
The conclusion of the BCD exemption is expected to impact future solar installations notably. With the exemption no longer in place, the cost of importing solar cells and modules will likely increase, potentially slowing down the pace of new projects. This could lead to a temporary dip in solar capacity additions in the coming quarters. However, industry experts remain optimistic about the long-term outlook for solar energy in India.
The government is expected to introduce new policies and incentives to continue supporting the growth of renewable energy. Additionally, the declining cost of solar technology and increasing efficiency of solar panels are anticipated to offset some of the cost increases due to the removal of the BCD exemption.
India solar installation 2025 and the rise of renewable energy
India’s renewable energy sector has been witnessing significant growth, driven by ambitious government targets and increasing investments in clean energy. The country has been focusing on solar and wind energy as key components of its energy mix, aiming to reduce carbon emissions and enhance energy security. The record installation of solar capacity in Q1 2025 underscores the progress India is making in its renewable energy journey and highlights the importance of supportive policies and incentives in driving the adoption of clean energy technologies.
As India continues to expand its renewable energy capacity, the focus will likely shift towards integrating these resources into the national grid, improving energy storage solutions, and enhancing the overall efficiency of the power sector. With the right mix of policies, investments, and technological advancements, India is well-positioned to achieve its renewable energy goals and contribute significantly to global efforts in combating climate change.
