The new report released by Bloomberg NEF (BNEF) shows that India will be the second largest solar market in the world by 2026, which will outshine the United States. The milestone shows the rapid development of renewable energy in India and its increasing part in transforming the world of solar energy.
India’s Solar Surge in 2026
In 2026 India will increase solar capacity by 50 gigawatts (GW), equivalent to 6% per annum. This growth is a continuation of utility-scale and increasing levels of rooftop solar systems.
The growth is still carried forward by government subsidies and favorable policies that provide solar energy to more households, businesses, and industries.
Solar has emerged as a stake of the renewable energy policy of the country, sustaining wind and hydro plans. This push is getting India towards its 2030 goal of 500 GW of non-fossil fuel energy and its 2070 net-zero goal.
US Market Faces Decline
The United States, in its turn, will witness a 14% decline in the number of solar installations, dropping down to 44 GW in 2026. Hurdles in policies and regulations are some of the factors that have slowed down deployment, and the US has fallen behind other countries in the rankings.
China is going to stay in the top position, as it will still control the production and installations of solar systems. Nevertheless, the fact that India has hit the second position means that the markets of renewable energy will change the balance considerably in the world market.
Drivers of India’s Growth
- Utility scale: Large solar farms in states such as Rajasthan, Gujarat, and Tamil Nadu are capacity building at an unprecedented pace.
- Rooftop solar adoption: New policy targets are subsidies and net metering, allowing urban households and commercial buildings to install rooftop panels.
- Government assistance: Costs have been reduced, and investor confidence has also been increased with incentives, competitive auctions, and financing schemes.
- Corporate demand: The corporations are entering into long-term power purchase contracts to achieve sustainability.
Global Implications
The rise of India in the solar market highlights the fact that India is a pioneer in the worldwide energy shift. India is rising fast ahead of the US in scaled renewable energy, and it indicates that it can be seen that the emerging economies can still accelerate to greater growth levels with policy, technology, and investment coming into place.
Conclusion
The solar industry in India is not only developing in 2026, but it is also changing the face of energy. India is poised to take the second position in the world with a new capacity of 50 GW, which underscores its desire to achieve a sustainable future.
