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Rajasthan Leads Solar Capacity but Faces Losses Due to Transmission Gaps

Rajasthan has emerged as the leader in India’s solar energy expansion, accounting for nearly 27% of the country’s total installed solar capacity, which reached 150,260 MW by the end of FY2025–26. Gujarat follows with around a 20% share, and together the two states contribute close to 47% of India’s solar capacity, highlighting their dominant role in the clean energy transition.

Despite this progress, Rajasthan is grappling with significant transmission constraints, resulting in the daily wastage of approximately 1,500–2,000 MW of solar power. Industry stakeholders warn that inadequate grid infrastructure is preventing developers from evacuating generated power, leading to financial stress and underutilisation of assets.

Project developers, many of whom secured contracts through competitive bidding and financed projects via loans, are facing revenue losses as they are unable to sell the electricity they generate. This has raised concerns over their ability to meet financial obligations and maintain project viability.

The issue is becoming more critical as project registrations continue to rise. Rajasthan Renewable Energy Corporation has recorded around 40,000 MW of new solar project registrations, with an additional 3,000 MW expected to be commissioned in the next six months. Without timely expansion of transmission networks and deployment of battery storage systems, a significant portion of this capacity risks going underutilized.

While Rajasthan leads in large-scale solar installations, Gujarat continues to outperform in other segments. It has a significantly higher wind power capacity and dominates the rooftop solar market, whereas Rajasthan lags behind in distributed solar adoption.

The situation underscores the urgent need for infrastructure upgrades and storage integration to ensure that rapid capacity additions translate into effective power utilisation, while sustaining investor confidence in the sector.