India is on track to install a record 50 GW of solar capacity in 2026, driven by a rush to meet the ALMM-II deadline despite emerging cell supply constraints. Wood Mackenzie expects the resulting supply crunch to push system prices higher through 2027, while greater domestic manufacturing capacity gradually eases pressure.
India is on track to add a record amount of solar capacity in 2026, even as the policy driving the surge creates a supply crunch that will push system prices significantly higher, according to new analysis from Wood Mackenzie.
India added 34 GW DC of solar capacity in the first half of 2026, 38% above H1 2025 levels, as developers raced to commission projects ahead of the June deadline for the Approved List of Models and Manufacturers-II (ALMM-II). Full-year additions are forecast to exceed 50 GW DC, surpassing the previous record of 49 GW DC set in 2025, according to Wood Mackenzie’s ‘From Modules to Cells: India Deepens its Solar PV Push’ report.
“India’s ALMM-II mandate is a bold step toward building a fully integrated domestic solar supply chain, but cell manufacturing capacity has simply not kept pace with modules,” said Sureet Singh, research analyst, Wood Mackenzie. “The near-term cost impact is unavoidable, and developers will need to navigate a difficult transition period before prices stabilise.”
