India’s renewable energy sector has witnessed extraordinary growth over the past decade, positioning the country as one of the world’s leading clean energy markets. With a total installed renewable capacity of 242.6 gigawatts (GW) as of August 2025, India now ranks fourth globally in overall renewable capacity. The growth trajectory has been remarkable, with the capacity almost tripling from 76 GW in FY2015 to 220 GW in FY2025. Clean energy sources, including renewable and nuclear power, now account for nearly half of the nation’s total installed capacity, achieving the 50% milestone five years ahead of the 2030 target. This puts India firmly on track toward achieving 500 GW of non-fossil capacity by 2030.
The most significant contributor to this achievement is solar energy, which has seen phenomenal expansion in recent years. India’s cumulative installed solar capacity crossed 100 GW in FY2025 and currently contributes over half of the total renewable energy portfolio, accounting for 50.7%. Over the past ten years, solar capacity has increased by an astonishing 132 times—from just 4 GW in FY2015 to 123 GW as of August 2025. This rapid expansion has made India the world’s third-largest solar power capacity holder, surpassing Japan.
To support the growing demand, the country’s solar manufacturing ecosystem is rapidly evolving toward self-reliance. India’s solar photovoltaic (PV) module manufacturing capacity has expanded from 38 GW in March 2024 to 74 GW in March 2025 and reached 100 GW under the Approved List of Models and Manufacturers (ALMM) by August 2025. Similarly, solar cell manufacturing capacity has increased to 27 GW. These advances have been made possible through policy support measures such as the Production Linked Incentive (PLI) Scheme and the ALMM framework. However, the domestic solar industry faces challenges on the export front. The United States, which currently accounts for nearly 99% of India’s solar module exports, has imposed high tariffs, creating a setback for export-driven manufacturers. Smaller firms dependent on exports are now operating at lower capacity levels, while the domestic market continues to rely heavily on imports from China due to their cost advantage and the availability of essential components like solar cells.
Wind energy continues to play an important role in India’s renewable mix. The installed wind capacity has more than doubled from 23.4 GW in FY2015 to about 50 GW in FY2025. India’s strong wind turbine manufacturing base has also led to an impressive rise in exports, increasing from USD 22 million in FY2018 to USD 245 million in FY2025. The government is also simplifying procedures for smaller renewable energy segments, including Small Hydro Power and Bioenergy. Revised guidelines for small hydro projects now link financial assistance to achieving 80% of projected power generation in any single month, making project execution simpler. Meanwhile, the Biomass Programme has been made more accessible for smaller firms by allowing the use of IoT-based monitoring or quarterly data submissions instead of expensive SCADA systems.
Looking ahead, Green Hydrogen is set to become a major pillar of India’s energy transition. Under the National Green Hydrogen Mission, India aims to capture 10% of the global market. Production and electrolyser manufacturing capacities have already been allocated to nineteen and fifteen companies, respectively. Major industry players such as Adani Group, JSW Neo Energy, and L&T Energy Green Tech are making significant investments in this area. The Adani Group alone plans to invest around USD 2.3 trillion by 2030 to expand its renewable capacity and manufacturing base. With strong policy backing, ambitious corporate initiatives, and rapid capacity growth, India is steadily advancing toward a clean, self-reliant, and globally competitive renewable energy future.
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