Industrial rooftop solar array installed by Arrays Ingenieria
Solar Insights 2026

Solar Power in India, Explained

Clear, sourced guides from our ex-servicemen-led engineering team: India's 2026 solar numbers, ALMM List-II, GST at 5%, CAPEX vs OPEX, PM Surya Ghar, PM-KUSUM and solar for tea estates.

11 Guides

What's New in Indian Solar

Every figure is linked to its source. Updated for October 2026.

Market UpdateIndia's Solar Boom in 2026: 164 GW and CountingIndia passed 150 GW of solar by March 2026 and 164 GW by July. What the build-out means for businesses planning a plant now.2 min read PolicyALMM List-II for Solar Cells (from 1 June 2026): What It Means for Your ProjectProjects under the ALMM order now need modules from List-I built with cells from List-II. Here is what changes and how to plan around it.2 min read TaxGST on Solar Cut to 5%: How It Lowers the Cost of a Solar PlantThe 56th GST Council cut GST on solar devices from 12% to 5% from 22 September 2025. What that does to a CAPEX solar budget.2 min read Business ModelsCAPEX vs OPEX (RESCO) Solar: Which Model Suits Your Business?Own the plant and keep every unit, or pay per unit with no upfront cost? A clear comparison of CAPEX and OPEX solar for Indian businesses.2 min read Tea EstatesSolar for Assam's Tea Estates: Lessons from 19 On-Grid PlantsFrom Koomber, inaugurated by the Chief Minister, to Orangajuli and Borpatra: what we have learned building solar in Assam's tea gardens.2 min read Buyer's GuideHow to Choose a Solar EPC and Installation Partner in India: 10 QuestionsTen questions to ask any solar EPC or installation contractor before you sign, from track record and safety to approvals and handover.2 min read HomesPM Surya Ghar Subsidy 2026: Amounts, Targets and How to ApplyThe PM Surya Ghar subsidy explained: up to Rs 78,000 for a 3 kW home system, and a target of 75 lakh households by December 2026.2 min read FarmersPM-KUSUM in 2026: New Deadlines for Component A and CMNRE has extended financial closure for PM-KUSUM Component A and C projects to 30 November 2026, with completion by 31 March 2027.2 min read System DesignRooftop vs Ground-Mount Solar: Which Is Right for You?Roof or open land? How to choose between rooftop and ground-mount solar for a factory, estate or institution.2 min read GridNet-Metering in India, ExplainedHow net-metering works, why rules differ by state, and what the approval process with your DISCOM looks like.2 min read O&MWhy O&M Is the Secret to Long-Term Solar ROIA solar plant is a 25-year asset. How operations and maintenance protect generation and returns.2 min read
Guide 01 · Market Update

India's Solar Boom in 2026: 164 GW and Counting

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • 150.26 GW of solar installed as on 31 March 2026; 164.59 GW by 31 July 2026
  • About 28.8 GW was added in the first seven months of 2026 alone
  • Good installation crews, not modules, are now the scarce resource: book your EPC partner early

India's solar fleet is growing faster than ever. Installed solar capacity crossed 150 GW (150.26 GW) as on 31 March 2026, and MNRE data put it at 164.59 GW by 31 July 2026: 122.57 GW of ground-mounted plants, 30.74 GW of grid-connected rooftop solar, 4.77 GW of solar in hybrid projects and 6.51 GW off-grid. Roughly 28.8 GW was added between January and July 2026.

The national direction is fixed: the Prime Minister's Panchamrit commitments at COP26 call for 500 GW of non-fossil capacity by 2030 and net zero by 2070, and non-fossil sources already passed half of India's installed power capacity in June 2025. For a factory, tea estate or warehouse, the question is no longer whether solar works, but how quickly and how well your plant can be built.

That is where the bottleneck now sits. With record volumes, experienced installation and commissioning crews, piling rigs and approval specialists are in demand. Plan the site survey, net-metering paperwork and civil works early, and choose a partner with a documented track record. Ours is on the projects page.

Sources: PIB: India ranks third globally in renewable energy installed capacity; SolarQuarter, 12 Aug 2026, citing MNRE data; PIB: PM's national statement at COP26, 1 Nov 2021.

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Guide 02 · Policy

ALMM List-II for Solar Cells (from 1 June 2026): What It Means for Your Project

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • ALMM List-I covers modules; List-II, for solar cells, applies from 1 June 2026
  • Covered projects must use List-I modules that are themselves made with List-II cells
  • Projects whose bids closed before the order was issued are exempt from the cell requirement

MNRE's Approved List of Models and Manufacturers (ALMM) decides which solar modules can be used in projects that fall under it, such as government-linked and scheme-backed projects. Until 2026 only List-I (modules) was in force. MNRE amended the ALMM Order 2019 so that List-II, for solar PV cells, takes effect from 1 June 2026.

From then on, covered projects must source modules from List-I, and those modules must in turn use cells from List-II. The aim is to grow domestic cell manufacturing and cut import dependence. Projects whose bid submission deadline fell on or before the date of the order are excused from the cell requirement, though they still use List-I modules.

For buyers, the practical effect is on procurement and documentation: the make, model and cell origin of every module must match the list in force for your project. Arrays Ingenieria does not manufacture modules or inverters, so we specify the ALMM-listed or client-approved makes each project requires and keep the paperwork that inspectors and DISCOMs ask for. See how our CAPEX EPC works.

Sources: PIB: MNRE amends the ALMM Order 2019 (List-II for solar cells).

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Guide 03 · Tax

GST on Solar Cut to 5%: How It Lowers the Cost of a Solar Plant

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • GST on solar cells, modules and other renewable devices fell from 12% to 5%
  • Decided at the 56th GST Council meeting on 3 September 2025; effective 22 September 2025
  • Equipment is the largest part of a plant's cost, so the cut flows straight into payback

On 3 September 2025 the 56th GST Council cut the GST rate on solar cells, modules and other renewable-energy devices from 12% to 5%, with effect from 22 September 2025.

Because modules, inverters and structures make up most of the cost of a solar plant, a lower tax rate on equipment reduces the upfront investment for anyone buying a plant on the CAPEX model, and shortens payback. How GST applies to a full EPC contract depends on how supply and services are split, so confirm the treatment for your contract with your tax adviser.

Combined with accelerated depreciation for businesses that own their plant, the tax cut makes 2026 one of the best years yet to build captive solar. Ask us for a quote with the new rates built in.

Sources: pv magazine India, 4 Sep 2025: GST on solar cells, modules cut to 5%.

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Guide 04 · Business Models

CAPEX vs OPEX (RESCO) Solar: Which Model Suits Your Business?

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • CAPEX: you invest, you own the plant, you keep all savings and the tax benefits
  • OPEX / RESCO: a developer invests and owns the plant; you buy the power at an agreed tariff
  • Arrays Ingenieria builds on the CAPEX model and works as installation partner to developers

Under the CAPEX model the client pays for the plant and owns it from day one. Every unit it generates is free power, and a business owner can claim depreciation on the asset. The investment is recovered through lower electricity bills, after which the plant keeps saving money for the rest of its life.

Under the OPEX or RESCO model a developer funds, owns and runs the plant on your site and sells you the power at a fixed tariff for a long contract period. There is no upfront cost, but the savings are shared with the developer and the tax benefits stay with the owner.

If you have the capital or access to green loans, CAPEX usually gives the best lifetime return. If you would rather not invest, OPEX lets you start saving immediately. Arrays Ingenieria builds plants for owners on the CAPEX model, and works as the installation and commissioning partner for developers, as on the 3.11 MW Goodricke Tea Estates Solar Programme developed by Tata Power Renewable Energy and Sustvest. More on the CAPEX solar EPC page.

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Guide 05 · Tea Estates

Solar for Assam's Tea Estates: Lessons from 19 On-Grid Plants

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Tea garden owners may use up to 5% of their land for solar, as announced by the Chief Minister of Assam
  • Assam targets 6,000 MW of installed green-energy capacity by 2030
  • Tea factories run heavy daytime loads: a near-perfect match for solar

Tea processing is energy hungry: withering, rolling, drying and sorting all run through the day, and many estates still lean on diesel generators. That daytime load is exactly when a solar plant produces, which is why Assam's tea gardens have become one of India's most promising markets for captive solar.

Policy is pushing the same way. The Chief Minister of Assam, Dr Himanta Biswa Sarma, has announced that tea garden owners may use up to 5% of their land for solar generation, and the state targets 6,000 MW of green-energy capacity by 2030.

Arrays Ingenieria has built 19 on-grid plants in Assam's tea gardens, including the 595 kWp plant at Koomber inaugurated by the Chief Minister on 1 October 2026, 450 kWp at Orangajuli and 230 kWp at Borpatra, and plants for Jay Shree Tea. The lessons: plan for monsoon access and drainage, synchronise the plant with the estate's DG sets, start the APDCL net-metering paperwork early, and protect the plant from cattle and wildlife with proper fencing. Read the full solar for tea estates guide.

Sources: Himanta Biswa Sarma, Rewriting Assam's Energy Future, 22 Sep 2026.

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Guide 06 · Buyer's Guide

How to Choose a Solar EPC and Installation Partner in India: 10 Questions

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Ask for documented projects, purchase orders and client certificates, not just photos
  • Check ISO 9001, 14001 and 45001 and how safety is managed on site
  • Make sure civil works, approvals and commissioning are in scope, in writing

A solar plant runs for 25 years or more, and most of its problems start during construction. Before you sign, ask any EPC or installation partner these ten questions:

1. Which comparable plants have you built, and can I see the purchase orders or client certificates? 2. Who are your partners and clients, and will they vouch for you? 3. Are you ISO 9001, ISO 14001 and ISO 45001 certified? 4. Who supervises the site day to day? 5. Are pile foundations, fencing, drainage and other civil works in your scope? 6. Which module and inverter makes will you use, and are they ALMM-listed where required? 7. Who handles net-metering and DISCOM approvals? 8. How will the plant be tested and commissioned, and what documents do I receive at handover? 9. What does O&M support look like after handover? 10. How will you keep the site safe?

We are happy to answer every one of them. Arrays Ingenieria is an ex-servicemen-led MSME, ISO 9001, 14001 and 45001 certified, with work for Tata Power, Jay Shree Tea, Goodricke, Sustvest and Super Smelters documented on our clients page and in our certificates.

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Guide 07 · Homes

PM Surya Ghar Subsidy 2026: Amounts, Targets and How to Apply

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Up to Rs 30,000 for 1 kW, Rs 60,000 for 2 kW and Rs 78,000 for 3 kW or more
  • 75 lakh households targeted for rooftop solar by December 2026; 1 crore overall
  • Apply on the national portal and choose a registered vendor in your state

PM Surya Ghar: Muft Bijli Yojana was launched on 13 February 2024 and approved by the Union Cabinet with an outlay of Rs 75,021 crore. It aims to put rooftop solar on one crore homes, and the government has targeted 75 lakh households by December 2026.

Central financial assistance covers 60% of system cost up to 2 kW and 40% of the additional cost between 2 and 3 kW. At benchmark prices that is Rs 30,000 for 1 kW, Rs 60,000 for 2 kW and Rs 78,000 for 3 kW or more. Homeowners apply on the national portal, pick a registered vendor, and the subsidy is credited after installation and inspection.

The scheme is for homes. Arrays Ingenieria focuses on commercial, industrial and tea-estate plants, which fall outside it; see all government solar schemes for the incentives that apply to businesses.

Sources: PIB: 75 lakh households targeted for rooftop solar by December 2026; PIB, 29 Feb 2024: Cabinet approves PM Surya Ghar.

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Guide 08 · Farmers

PM-KUSUM in 2026: New Deadlines for Component A and C

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Component A: grid-connected solar plants of up to 2 MW on farmers' land
  • Financial closure for Component A and C extended to 30 November 2026
  • Project completion deadline: 31 March 2027

PM-KUSUM supports farmers, cooperatives, panchayats and FPOs. Component A funds decentralised ground- or stilt-mounted grid-connected solar plants of up to 2 MW on farm land, with the power bought by DISCOMs; Component C solarises grid-connected agriculture pumps, individually or at feeder level.

Developers have struggled with loan appraisal and sanction, so MNRE has extended the deadline for financial closure of Component A and C projects to 30 November 2026, while keeping 31 March 2027 as the completion date.

That leaves a tight construction window. A Component A plant is a ground-mount plant: survey, pile foundations, fencing and civil works, structures, modules, cabling, testing and commissioning. That is the work our crews do every day, and we can start as soon as financial closure is in place.

Sources: Energetica India: MNRE extends PM-KUSUM financial closure deadline to 30 Nov.

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Guide 09 · System Design

Rooftop vs Ground-Mount Solar: Which Is Right for You?

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Rooftop uses space you already have; capacity is limited by roof area and strength
  • Ground-mount suits larger capacities and allows the best tilt and easy cleaning
  • Many sites combine both

Rooftop solar uses your existing roof, which suits factories, warehouses, institutions and commercial buildings that want to offset on-site consumption without using land. It is quick to build and keeps the roof cooler. The limit is shadow-free roof area and the structural strength of the roof.

Ground-mount solar is built on open land and suits larger capacities, from a few hundred kilowatts to hundreds of megawatts. It allows the best tilt and orientation, easy cleaning and access, and is the format used in utility parks and tea estates. It needs land and sound foundations, which is why our piling and civil works teams matter.

Many clients combine a rooftop array with a ground-mount plant. Our engineers recommend the mix after a site survey: see rooftop solar and ground-mount solar.

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Guide 10 · Grid

Net-Metering in India, Explained

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • A bi-directional meter records both import and export
  • You are billed on the net units; surplus may earn credits under state rules
  • Approvals and inspections are handled with your state DISCOM

Net-metering lets a grid-connected solar plant export surplus power to the grid. A bi-directional meter records the units you draw and the units you export, and your bill is based on the net. Daytime generation offsets your consumption directly.

Rules, caps and settlement periods are set by each state's electricity regulator and DISCOM, so the process differs by state. At Borpatra Tea Estate we obtained the net-metering and statutory approvals from APDCL, including the technical inspections, so the plant could start on schedule.

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Guide 11 · O&M

Why O&M Is the Secret to Long-Term Solar ROI

By the Arrays Ingenieria engineering team · · 2 min read

Key takeaways
  • Soiling, shading and loose connections quietly cut generation
  • Preventive maintenance and monitoring protect returns
  • Good documentation at handover makes O&M easier

A solar plant is a 25-year asset, and its return depends on keeping it at peak output for all of those years. Dust, shading, a failing inverter or a loose connection can quietly erode generation.

Professional operations and maintenance protects the investment with preventive servicing, module cleaning, inspections, inverter upkeep and performance monitoring, plus support with statutory compliance. Learn more about our O&M and support.

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