Government targets remain ambitious: 500 GW of non-fossil fuel capacity by 2030, with projections indicating solar capacity could quadruple and wind triple over the coming decade under supportive policies.
India is rapidly advancing its clean energy ambitions, emerging as a global leader in renewable energy deployment. As of March 31, 2026, the country’s installed solar power capacity stands at approximately 150.26 GW, while wind power capacity is approximately 56.1 GW. These figures reflect substantial growth, with solar accounting for the majority of additions in recent years.
Electricity generation from renewables has also climbed sharply. According to Central Electricity Authority estimates, in FY 2024-25, renewable sources (including hydro and bioenergy) generated around 416,823 GWh. Solar and wind have been key drivers, with solar generation reaching notable levels (roughly doubling since 2022) and wind posting record annual increases. In 2025, solar and wind together contributed significantly to meeting rising electricity demand, helping to moderate growth in fossil fuel-based generation.
Trend lines show strong momentum: Renewable installed capacity (excluding large hydro in some counts) has expanded dramatically from around 90 GW in 2016 to over 229 GW by 2025, with continued robust additions into 2026, including a record year for wind capacity additions. Solar has grown at a particularly high compound annual rate, while wind has also scaled steadily. Government targets remain ambitious: 500 GW of non-fossil fuel capacity by 2030, with projections indicating solar capacity could quadruple and wind triple over the coming decade under supportive policies. Transmission infrastructure upgrades and hybrid projects are expected to sustain this trajectory.
Barriers to further expansion persist but are being actively addressed
Key challenges include
- Grid integration and transmission bottlenecks (with some renewable capacity facing curtailment),
- Land acquisition complexities,
- Financing hurdles (especially for smaller projects), and
- Intermittency of supply requires storage solutions.
Policy and regulatory variations across states can also slow progress.
The government is tackling these through major investments in Green Energy Corridors and a ₹2.4 lakh crore transmission plan to evacuate power from renewable-rich regions. Energy storage obligations, hybrid solar-wind projects, rooftop solar schemes, and regulatory reforms aim to improve dispatchability and investor confidence. Emphasis on domestic manufacturing (e.g., PLI schemes) and skill development further supports scaled deployment aligned with official MNRE and CEA planning.
Exports of solar and wind energy equipment are growing, though India primarily focuses on meeting domestic demand. India does not export significant quantities of generated electricity itself but has become a notable exporter of solar modules and wind turbine components. Solar module exports have surged, with the United States as the dominant destination, followed by markets in Europe, the UAE, Africa, and parts of Asia (e.g., Vietnam and Brazil). Wind component manufacturing capacity also supports exports.
Main uses within India center on grid-connected power for the electricity sector. Solar powers utility-scale plants, rooftop installations (meeting commercial, industrial, and residential needs), and rural electrification. Wind energy is predominantly harnessed in states like Gujarat, Tamil Nadu, and Rajasthan for bulk grid supply. Both sources support industrial and agricultural demand, with growing interest in applications such as green hydrogen production and the integration of electric mobility.
The overall energy balance still favors fossil fuels, but the shift is evident. Coal remains the backbone of electricity generation (around 69% in recent mixes), with total fossil fuels accounting for the majority of power output. However, non-fossil sources (renewables plus nuclear and large hydro) now represent a growing share of installed capacity (nearing or exceeding 40-45% in some metrics), and their contribution to actual generation is rising steadily. Renewables helped displace fossil fuel output in 2025, marking a notable inflection point as solar and wind’s combined share of electricity approached or exceeded 14%. Continued capacity additions and storage rollout are expected to further rebalance the mix toward the target of achieving 50% cumulative installed electric power capacity from non-fossil fuel sources by 2030.
India’s renewable energy story is one of determined scale-up, backed by policy continuity and technological progress. While challenges in integration remain, the trajectory underscores a clear commitment to sustainable growth, energy security, and global climate contributions, as reflected in official data from the Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), and Energy Statistics reports.
This Post was submitted by Climate Scorecard India Country Manager, Ankita Padelkar.