India’s Solar Generation Rose 24 Percent YoY in Q4 FY26: CREA Report
India’s solar generation surged 24 percent YoY to 48.9 BU in Q4 FY26, but rising curtailment levels underscore growing grid integration challenges, according to Centre for Research on Energy and Clean Air.
May 01, 2026. By Mrinmoy Dey
As per the report, India’s total electricity generation reached 464 billion units (BU) in Q4 FY26, up 3 percent. While coal and lignite generation declined by 1 percent, generation from solar, wind, nuclear, and large hydro increased by 24 percent, 11 percent, 10 percent, and 7 percent, respectively. Solar generation reached 48.9 BU, with the highest daily output recorded on March 27, 2026 (658 MU).
Despite higher renewable generation, a significant amount of clean energy was not utilised during Q4 FY26, with around 27 GW (72 MU) of solar and 4 GW (6 MU) of wind being curtailed. An additional 83 GW (103 MU) of solar and 11 GW (17.5 MU) of wind were curtailed under India’s Tertiary Reserve Ancillary Service (TRAS), a manually activated power system balancing service used to resolve grid congestion. Gujarat in Western India recorded the highest curtailment, highlighting grid integration challenges in high-renewables regions, noted the report.
After recording an all-time peak demand of 250 GW on May 30, 2024, India’s peak electricity demand reached a new Q4 high of 245 GW on January 9, 2026, with overall demand growing by nearly 3 percent YoY. However, this is the slowest YoY growth in Q4 since 2020-21. Notably, 88 out of 90 days recorded peak demand during solar generation hours. During the Q4 FY26 peak demand period of 245 GW, thermal generation accounted for 67 percent (165 GW) of the total, followed by solar at 20 percent (48 GW). Maharashtra in Western India recorded the highest state-level peak demand (32 GW) in Q4 FY26, followed by Gujarat (25 GW) and Uttar Pradesh (23 GW).
Coal power capacity plant load factor (PLF) fell from 72 percent to 69 percent in Q4 FY26, despite rising demand. Gas PLF increased from 10 percent to 12 percent, while nuclear rose marginally from 78 percent to 79 percent. Solar capacity utilisation factor (CUF) declined slightly from 23 percent to 22 percent.
Capacity additions in Q4 FY26 were led by renewables, with 16.2 GW added, compared with 2.3 GW of thermal and 0.5 GW of large hydro. India commissioned 2.3 GW of new thermal capacity, which was entirely coal-based in Q4 FY26, down 18 percent YoY, while no thermal capacity was retired. Meanwhile, 39.4 GW of coal capacity remains under construction, with most projects still in the early stages, noted the report.
“India’s rising power demand is increasingly being met by renewables, particularly during daytime peak hours. However, rising renewable curtailment shows that grid infrastructure and flexibility are not keeping pace with clean energy growth. With stronger transmission networks, more flexible grid operations, and faster battery deployment, a larger share of evening and night-time demand can also be met through non-fossil sources,” said Manoj Kumar, India Analyst at CREA.
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