Solar energy remains the fastest-growing source of electricity in the country, surging 39% year-on-year in the second quarter of the 2026/2027 fiscal year. This expansion helped renewables reach a 44% share of total capacity by August 2026, outpacing coal and lignite installations at 231 GW. Yet, this progress is hampered by systemic failures in grid management. On September 30, India hit a new solar generation record of 705 million units, proving the capacity exists even as the infrastructure struggles to distribute it.

The volatility is compounded by a precarious reliance on coal. As of October 1, the number of power plants operating with critically low coal stocks—below 25% of mandated requirements—jumped to 85, up from 32 in late August. To combat these recurring curtailments and improve grid flexibility, the government intends to mandate battery storage installations for all new solar and wind projects starting in July 2027.