India to Dethrone US as Second-Largest Solar Market in 2026, Says BloombergNEF Report

New Delhi, Jan 14 (KNN) India is set to overtake the US as the world’s second-largest solar market in 2026, a BloombergNEF report said on Wednesday while projecting 6% growth in the country's total solar capacity addition during the year.

The report said that while India’s solar additions would exceed 50 Gigawatt (GW) in 2026, solar capacity addition in the US is expected to drop 14% to 44 GW during this period.

Government subsidies are seen supporting growth in residential rooftop solar systems in India. On the other hand, solar capacity addition in the US would be impacted by the One Big Beautiful Bill Act.

"Projects that begin construction after the end of 2025 must comply with foreign entity of concern rules to qualify for tax credits, adding another obstacle for developers. As a result, the US is set to relinquish second place, a position it has held since 2019," said the BloombergNEF report.

At present, China remains the world’s largest solar market despite an expected fall in annual additions. The BloombergNEF report forecasts 321 gigawatts of projects to be added by China in 2026, a 14% decrease.

As a result of China's lower solar capacity addition, global solar installations are set to decline for the first time this year.

"Although some markets are poised for strong growth in 2026, this will not offset the significant shortfall left by China," the report said.

As per the report, India added a record 35 gigawatts (alternating current) of solar capacity in the first 11 months of 2025. Adani Green Energy, NTPC, ReNew, Avaada and Tata Power are among the top solar power producers in the country.

(KNN Bureau)