India's renewable surge hits grid bottlenecks as experts urge storage and adoption

India added a record 55.29 GW of non-fossil capacity in FY2025-26, but grid constraints led to 8,133 GWh of solar curtailment, prompting experts to call for storage and adoption.

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India's renewable energy push reached a new peak last fiscal year, yet the country's grid is struggling to keep pace. Official figures show that non-fossil capacity grew by a record 55.29 GW in FY2025-26, lifting the total to 283.46 GW, with renewables accounting for 274.68 GW of that. The expansion cements India's position as the third-largest market worldwide for installed renewable capacity.

But the rapid build-out has exposed integration challenges. Between April and June 2026, grid operators curtailed 8,133 GWh of solar power, citing transmission bottlenecks and the need to maintain grid security. Experts gathered at a seminar on August 5, 2026, argued that the next phase must prioritize weaving clean energy into the system and driving actual adoption, not just adding more generation.

The event, titled "New Energy: From Evaluation to Adoption," was organized by Think Change Forum with DRIIV as knowledge partner and the Office of the Principal Scientific Adviser to the Government of India lending support. Ajay Mathur, former Director General of the International Solar Alliance, said the focus should shift to deploying clean-energy technology at scale, boosting efficiency, widening electrification, and decarbonizing heavy industry. Upendra Tripathy, a former Secretary at the Ministry of New and Renewable Energy, stressed the need for practical, commercially viable pathways for legacy sectors, with implementation taking precedence.

Energy storage is seen as a linchpin. According to official projections, India will need around 336 GWh of storage capacity by 2029-30, rising to 411 GWh by 2031-32. The Institute for Energy Economics and Financial Analysis (IEEFA) echoes this in a recent report, urging the expansion of battery storage, faster rollout of smart meters, better access to finance, and streamlined approvals.

The same report charts the steep climb of distributed solar, which grew from 1.8 GW in FY2018 to 31.5 GW in FY2026. Yet its share of total renewable capacity has hovered near 21-22% throughout that period. IEEFA notes that India's technical rooftop potential stands at 637 GW, and with over 29 million irrigation pumps, there is considerable room for solarizing agriculture.

Gaurav Upadhyay, Lead Analyst for Sustainable Finance at IEEFA South Asia, said: "In India, DER growth has been driven by two flagship schemes: PM Surya Ghar Muft Bijli Yojana and PM-KUSUM. Backed by diverse business models, including CAPEX, RESCO/OPEX and utility-led implementation models, these schemes have broadened market participation and accelerated DER deployment across urban and rural areas."

International comparisons in the report show Australia's rooftop solar contributes more than 13% of electricity generation in its National Electricity Market, with panels on roughly 40% of homes. In Bangladesh, rooftop solar capacity is estimated at 667 MW, exceeding the officially reported 418.1 MW.