India’s Solar EPC Market to Boom in 2026 Amid Policy Push

Introduction

India’s solar EPC sector is entering a dynamic growth phase as new government incentives and project bids reshape the renewable landscape. With both utility-scale and rooftop programmes accelerating, the engineering, procurement and construction (EPC) segment stands poised for a major upturn in 2026. For EPC firms, component suppliers and investors alike, the coming year offers a rich runway. This article explores why 2026 is emerging as a breakout year, what’s driving it, who the key players and trends are, and how the investment and future outlook is shaping up.

Policy Push for Solar EPC Growth

The government of India has set ambitious targets for solar deployment. Under the national agenda, the country aims for approximately 280 GW of solar PV capacity by 2030.  To sustain that trajectory, annual additions need to rise to ~30–40 GW. 

In the recent past, India added about 16.9 GW of utility-scale solar and 5.1 GW of rooftop solar in FY2025.  Given this rate, EPC contractors are increasingly seeing pipeline growth. For example, the EPC market globally is projected to grow from USD ~US$232 billion in 2024 to ~US$246 billion in 2025. 

From a policy standpoint, key enablers for the EPC market in India include:

• Supportive tendering and auction frameworks for large utility-scale solar plants.

• Rooftop and distributed solar schemes pushing smaller EPC jobs (e.g., commercial & industrial rooftop solar).

• Emphasis on domestic manufacturing of solar modules, cells and components – which affects EPC scope and supply chains. 

• Rising investment flows into transmission & grid integration, which complement solar EPC work.

In short: the policy tailwinds are aligning strongly for EPC firms.

Leading Players and Market Trends

In India’s solar EPC landscape, some of the key structural and competitive trends include:

• Capacity growth & pipelines: India’s cumulative installed solar capacity exceeded 119 GW by July 2025.  The project pipeline remains substantial: as of Q1 2025, renewables (solar + wind + hybrids + storage) had ~143.8 GW in pipeline and another ~66.1 GW under bidding. 

• EPC market size and growth: Globally, the solar EPC market size is estimated at ~US$407.6 billion in 2024, with a forecast CAGR of ~8.1 % from 2025-2034. While India‐specific EPC data is less granular, the overall Indian solar energy market is projected to expand from ~92 GW in 2024 to ~284 GW by 2033, a CAGR of ~13.35%.

• Segment shifts: Utility-scale solar remains the primary domain for large EPC contracts. At the same time, rooftop/distributed solar is becoming an increasingly important segment for EPC firms seeking diversification.

• Technology & innovation: EPC contractors are upgrading their capability sets, incorporating digital tools (for planning, monitoring, O&M), bifacial/dual-use agrivoltaics, floating solar and solar + storage configurations.

• Regional concentration: States such as Rajasthan (≈ 26.9 GW), Gujarat (≈ 12.8 GW) and Karnataka (≈ 10.6 GW) lead in installed solar in India.  EPC firms with strong state-level presence in these markets are well positioned.

• Challenges for EPC firms: Despite strong growth, the EPC sector also faces cost pressures (module/inverter price trends), land & permitting delays, grid-integration constraints and labour or supply-chain bottlenecks. 

Investment and Future Outlook

For EPC firms and investors alike, the outlook toward 2026 and beyond appears optimistic for multiple reasons:

1. Growing project awards: With the solar deployment target increasing, the number of EPC contracts (especially large utility-scale) is expected to accelerate. One forecast suggests about 21.2 GW new utility-scale plus ~7.2 GW rooftop/onsite solar expected in FY2026 in India. 

2. Margin opportunities: As EPC scope expands (into floating solar, agrivoltaics, storage-integrated solar), providers with advanced capabilities can capture higher-value work beyond “vanilla” ground-mounted plants.

3. Supply chain localisation: As module and cell manufacturing ramp up in India, EPC firms that align with domestic content requirements and integrate manufacturing linkage may benefit from cost advantages and preference in tenders.

4. Diversification: EPC firms are branching into rooftop/distributed solar (commercial & industrial), solar + storage, and plant O&M services — increasing lifetime revenue beyond mere construction.

5. Global tailwinds: The global solar EPC market is set for growth (CAGR ~8.1% from 2025-34) with demand for clean-energy infrastructure rising worldwide. 

That said, there are risks: tender slowdowns, land or grid delays, rising input costs and competitive pricing pressures could squeeze margins. For example, India’s renewables sector recently faced weak demand for tenders and cancellations. 

Conclusion

In summary, 2026 is shaping up to be a banner year for the solar EPC market in India. With strong policy backing, expanding capacity additions and emerging technology trends, EPC firms have a sizable opportunity before them. To succeed, companies should focus on enhancing capabilities in high-end EPC (floating, storage, agrivoltaics), optimizing supply chain linkages, and diversifying into rooftop/distributed solar and services. For investors, solar EPC stands out as a strategic bet in India’s clean-energy transition — provided project‐execution risks are managed well.

For readers of Renewable Focus, the takeaway is clear: if you’re in the EPC space (or considering entering it), now is the time to sharpen your strategy, build for scale, and align with India’s solar ambitions.