India's renewable energy sector is experiencing a significant upswing in 2025, driven by ambitious government targets, supportive policies, and increasing investor confidence. The nation is rapidly expanding its renewable energy capacity, particularly in solar and wind power, and has already achieved some key milestones ahead of schedule.

Key Achievements and Milestones

India has surpassed its initial Nationally Determined Contribution (NDC) target of sourcing 50% of its cumulative electric power installed capacity from non-fossil fuel sources, achieving this five years ahead of the 2030 deadline. As of June 2025, the country's total installed power capacity reached 476 GW, with 235.7 GW coming from non-fossil fuel sources, accounting for 49% of the total. This includes 226.9 GW of renewable energy and 8.8 GW of nuclear power. India ranks third globally in renewable energy capacity, fourth in wind power, and third in solar power capacity.

The solar sector has seen remarkable growth, with installed capacity increasing more than 39 times, from 2.82 GW in 2014 to 110.9 GW as of June 2025. By July 2025, India's solar photovoltaic capacity reached 119,016.54 MW, representing over 63.35% of the total renewable energy capacity, excluding large hydro projects. Wind energy has also expanded, with a total installed capacity of 51.05 GW as of June 2025. In the first half of 2025 alone, India added a record 22 GW of renewable energy capacity, a 56% increase compared to the previous year. This includes 18.4 GW of solar, 3.5 GW of wind, and 250 MW of bioenergy.

Government Initiatives and Policies

The Indian government has played a crucial role in driving the renewable energy revolution through various initiatives and policies. The Production-Linked Incentive (PLI) scheme has encouraged domestic manufacturing of solar equipment, while the Approved List of Models and Manufacturers (ALMM) policy ensures the quality of solar modules used in government projects. The PM Surya Ghar Muft Bijli Yojana, launched in February 2024, aims to provide free electricity to 1 crore households through rooftop solar systems. This scheme has witnessed a significant boost in funding, with the allocation increasing from INR 110 billion in FY25 to INR 200 billion in FY26. The National Green Hydrogen Mission is another ambitious initiative, with a target of 5 MMT annual capacity by 2030 and an investment of over ₹8 lakh crore.

Challenges and Opportunities

Despite the impressive progress, India's renewable energy transition faces several challenges. Grid integration and the development of energy storage solutions are critical to address the intermittency of renewable energy sources. Without adequate storage, distribution companies may need to rely on thermal generation to ensure a reliable power supply. Land acquisition for renewable energy projects is another challenge, with communities sometimes opposing the use of their land. Securing large, contiguous land parcels can be a complex process due to land fragmentation, unclear ownership, and bureaucratic delays.

However, these challenges also present opportunities for innovation and growth. The development of battery energy storage systems (BESS) is gaining momentum, with significant capacity being awarded to developers. Expansion of domestic manufacturing beyond solar modules to include batteries, inverters, and wind components is crucial for self-reliance in energy technology. Digitalization and the development of smart grids can further enhance the efficiency and reliability of the renewable energy sector.

The Path Ahead

India is committed to achieving 500 GW of non-fossil fuel-based energy capacity by 2030 and has even more ambitious goals for 2047. To achieve these targets, the country needs to address the challenges related to grid integration, energy storage, and land acquisition. Continued government support, private sector investment, and technological advancements will be essential to sustain the momentum of India's renewable energy revolution. By embracing innovation and overcoming obstacles, India can solidify its position as a global leader in clean energy and pave the way for a sustainable future.