The key themes in India are a strong focus on transmission infrastructure, overcoming grid integration challenges, and a new wave of solar manufacturing.
Infrastructure and Grid Integration
Major Transmission Project for Gujarat REZ: Adani Energy Solutions (AESL) has secured a significant contract to establish a new transmission system capable of evacuating 2.5 GW of renewable energy from the Khavda Renewable Energy Zone (REZ) in Gujarat.1 This is a crucial step towards addressing the persistent transmission constraints that have historically led to solar energy curtailment in renewable-rich states like Rajasthan.
Government Focus on AI for Grid Management: Grid India (the national load dispatch center operator) is embedding Artificial Intelligence (AI) deep into grid operations for real-time risk detection, fault prediction, and managing the intermittency of solar and wind power.2 This is essential as India’s renewable capacity is projected to cross 500 GW before 2030.3
IMD Solar Installation: The India Meteorological Department (IMD) commissioned a 771 kWp solar power system at Mausam Bhawan, part of the broader ‘Mission Mausam’ initiative, demonstrating a commitment to integrating renewables into government facilities.4
Infrastructure and Grid Integration
Massive Investment Plan: Avaada Group plans to invest ₹1 lakh crore (approx.5 $12 billion) over the next five years to scale its generation capacity to 30 GW and expand its manufacturing base. The company noted that grid readiness is currently the only limiting factor to their aggressive expansion.6
- Funding for Distributed Solar: Candi Solar, a clean energy company, secured $58.5 million in IFC-led funding to finance nearly 200 MWp of new distributed solar projects across India and South Africa, highlighting the growing role of the Commercial & Industrial (C&I) sector.7
The Solar Glut Challenge: There are growing concerns about a potential solar
manufacturing glut in India.8 Manufacturing capacity is rising much faster than domestic project demand, with analysts pointing to potential overcapacity. Grid curtailment rates (power generated but not used) have also been high in recent months, further stressing the issue of solar energy being wasted.9
Policy and Regulatory
GST Reduction for RE: A major reform in September 2025 saw the GST rate on renewable energy devices and components reduced from 12% to 5%, which is expected to lower project costs and reduce the financial burden on distribution companies.
Quality Control: Implementation of the 2025 Quality Control Order mandates Bureau of Indian Standards (BIS) compliance for solar PV modules and inverters to ensure better durability and performance.11
Global: International Expansion and Policy Risk
Globally, the market sees continued expansion in emerging economies, but with heightened policy and geopolitical risks.