India Faces 4% Solar Output Curtailment Amid Power Shortages
In July and August, India curtailed over 1.8 billion units of solar energy due to grid constraints, despite record renewable generation.
Over 4% of solar power was curtailed in July and August due to grid issues.
Solar energy accounted for 58% of the increase in renewable generation in Q2 2026/27.
India plans to mandate battery storage for solar and wind projects starting July 2027.
India's renewable energy sector faced significant challenges in July and August, with over 1.8 billion units of solar power curtailed due to operational and grid constraints. According to a report from the Centre for Research on Energy and Clean Air (CREA), this curtailment represented more than 4% of the total solar output during these months, coinciding with a surge in energy demand across the country.
Despite these setbacks, solar power generation has been a major contributor to India's renewable electricity growth. CREA's analysis revealed that solar energy accounted for 58% of the increase in renewable generation during the second quarter of the 2026/2027 fiscal year, marking a 39% year-on-year growth. In contrast, other renewable sources like wind and nuclear saw increases of 29% and 26%, respectively, while hydropower generation declined by 20%.
On September 30, solar output reached a new daily record of 705 million units, surpassing previous figures from the first quarter of FY2026-27. However, CREA analysts noted that despite these records, substantial amounts of renewable energy were still curtailed due to grid limitations. The curtailments were particularly pronounced during July and August when demand surged, leading to operational challenges for coal plants, which faced critically low inventories.
As of August 2026, coal and lignite installations accounted for 231 GW of power capacity, representing 42% of the total. In contrast, renewable energy capacity (excluding large hydro) grew to 243 GW, increasing its share to 44%. This growth was notable compared to 193 GW and a 39% share in August 2025. The increase in renewable capacity highlights the ongoing transition in India's energy landscape, despite the curtailments.
To mitigate future curtailments and enhance flexibility in renewable energy sources, the Indian government plans to introduce regulations mandating battery storage for solar and wind projects starting July 2027. This initiative aims to improve energy reliability and efficiency as the country continues to expand its renewable energy portfolio.
