India is increasingly curbing solar power output during low-demand periods to maintain grid stability and manage power line congestion, the Ministry of New and Renewable Energy (MNRE) has confirmed. The decision comes as the country’s green energy capacity, particularly solar, continues to expand while infrastructure lags behind.
In a statement to Reuters, the MNRE acknowledged that the curtailments—temporary restrictions on power generation—have become necessary due to two key factors: a surge in new renewable plants becoming operational ahead of schedule and delays in completing supporting transmission projects.
These constraints have become a serious concern for India’s renewable energy developers, many of whom are already grappling with the lack of new supply contracts amid a slowdown in power demand.
Rajasthan Hit Hardest
Rajasthan, India’s top producer of green energy, has been the most severely affected. The National Solar Energy Federation of India (NSEFI) reported that curtailments in the state have spiked to as high as 48% of total output during peak generation hours. In a letter dated July 24 to the MNRE, NSEFI said that these restrictions have caused an estimated revenue loss of over $26 million for solar power producers since April.
The NSEFI, which includes major industry players such as Adani and Tata’s green energy arms, as well as Amazon Web Services and international investors like SHV (Netherlands) and Gentari (Malaysia), warned that persistent curtailments are undermining the economic viability of projects and threatening future investments.
“Projects in the state had been deferred by 18-20 months to accommodate for the delays in the transmission system, but are still unable to be commissioned due to even further delays,” the letter noted.
The Federation urged the government to expedite stalled transmission and battery storage projects, some of which are facing delays of up to two years. In response, the central power ministry has said it is working to fast-track interstate transmission infrastructure.
Curtailments Beyond Rajasthan
Other renewable-rich states are also facing similar challenges. Tamil Nadu in the south, and Gujarat and Maharashtra in the west, are experiencing solar output restrictions as well, according to industry sources and energy analysts.
In Tamil Nadu, the Renewable Energy Producers Association reported that actual solar output was 10% lower than forecast during the April–June quarter. A state energy department spokesperson, J Radhakrishnan, clarified that solar was being curtailed only as a “last resort,” and noted that coal-fired generation was also being scaled back during periods of low demand.
Slowdown in New Projects
India’s solar capacity additions hit record highs in the first half of 2025, as previously tendered projects reached completion. However, the momentum appears to be slowing. According to clean energy consultancy Mercom, solar project awards in the April–June quarter dropped by 75% year-on-year, while new tenders fell by 65%.
The MNRE attributed the decline to a “temporary recalibration rather than a slowdown,” emphasizing that new bids are aligned with national targets and existing demand.
Capacity Utilization Drops
Government data also shows a decline in solar capacity utilization, which fell to 21.4% in May and 19.5% in June. The MNRE partly attributed this to lower solar irradiance, though it maintained that a utilization range of 21% to 25% is expected during February–June periods in the future.
