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Distributed outlook

Distributed solar generation is gradually moving to the center of India’s energy transition, driven by a growing shortage of land and grid availability for utility-scale solar plants and a policy push for distributed solar.

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India’s installed solar capacity has risen from under 5 GW in 2016 to over 165 GW in 2026, with ground‑mounted projects supplying more than 120 GW and rooftop installations reaching beyond 30 GW as of August 2026. The sector is shifting focus from adding new capacity to optimizing the location, grid interaction, and flexibility of existing assets over the next decade. Shantanu Roy, a researcher at the Indian think tank CSTEP, says this shift will create additional opportunities for distributed solar deployment.

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