New Delhi, Sept. 22 -- Solar energy has become the driving force of India's electricity sector, accounting for over 85 per cent of the 20 GW of new capacity added in the first five months of FY26, according to a report by SBI Capital Markets (SBICAPS).

The study projects that more than 45 GW of solar capacity will be installed this year - the highest-ever annual addition for the country.

India's installed solar capacity has expanded more than 3.4 times in the past five years, overtaking wind in FY21 to become the country's largest renewable source.

Policy support, falling module prices, and green energy goals have accelerated this shift. A reduction in GST on renewable components from 12 per cent to 5 per cent is further expected to cu...