India has hit a major climate milestone, achieving 50 per cent non-fossil power capacity five years ahead of its Paris climate target. Renewable Energy Minister Pralhad Joshi announced this significant feat on July 12, 2025, also noting a massive 420 per cent jump in renewable capacity addition in June 2025 alone, soaring from 1.4 GW to 7.3 GW. This achievement highlights India’s rapid progress and dedicated efforts in transitioning towards sustainable and clean energy solutions over the past decade.
Understanding renewable energy
Renewable energy refers to electricity or power generated from naturally replenishing sources. These include solar, wind, hydropower, biomass, and geothermal energy (heat from the Earth’s core). These sources are sustainable, environmentally friendly, and play a crucial role in reducing pollution and decreasing reliance on fossil fuels.
India’s surging renewable capacity (2014-2025)
According to the Ministry of New and Renewable Energy (MNRE), Bharat’s renewable energy capacity has seen remarkable growth from 2014 to June 2025:
-Solar energy experienced an astounding 40-fold increase (4,000 per cent growth), surging from 2.8 GW to 116.25 GW.
-Wind capacity more than doubled, showing a 140per cent rise, from 21 GW to 51.67 GW.
-Small Hydro Power saw a modest increase from 3.80 GW to 5.10 GW.
-Overall, renewable energy capacity (excluding large hydro) grew fivefold, from 35.85 GW in 2014 to 184.62 GW by June 2025.
-Including large hydro (approximately 49.38 GW), India’s total non-fossil fuel capacity reached 233.999 GW as of June 2025.
-Fiscal Year 2024-25 alone recorded a record addition of 29.52 GW, with solar contributing 23.83 GW and wind 4.15 GW.
On track for ambitious 2030 targets
This robust growth positions India well to meet its ambitious target of achieving 500 GW of non-fossil fuel energy capacity by 2030. This commitment was a cornerstone of India’s “Panchamrit” pledges announced at COP26 in 2021, showcasing the nation’s unwavering dedication to a cleaner, greener energy future.
Bharat’s remarkable surge in renewable energy capacity, culminating in achieving 50 per cent non-fossil power five years ahead of its Paris target, is the result of several strategic initiatives and favourable market conditions. Here are the key factors driving this green energy revolution:
International Solar Alliance (ISA): A global partnership for solar dominance
Launched jointly by Bharat and France in 2015, the International Solar Alliance (ISA) stands as a crucial treaty-based global pact. Its primary goal is to mobilise an ambitious USD 1,000 billion in solar investments by 2030 and foster robust cooperation among sun-rich nations. The ISA has been instrumental in promoting the cross-border deployment of solar technology, significantly bolstering India’s global leadership in clean energy.
100 per cent FDI and policy reforms powering investment
India’s renewable energy sector has become a magnet for investment, largely due to a highly favourable policy environment. Current regulations permit up to 100% Foreign Direct Investment (FDI) in renewable energy projects, including offshore wind, via the automatic route, significantly simplifying investment approvals. This policy attracted a substantial USD 6.14 billion in FDI between April 2020 and September 2023. Further policy support includes the development of ultra-mega renewable parks, waivers for Inter-State Transmission System (ISTS) charges, progressive renewable open access rules, and transparent tariff-based competitive bidding, all of which have streamlined and incentivised investment.
Subsidies & schemes driving green energy expansion
Government incentives and comprehensive schemes have played a pivotal role in democratising access to green energy. Initiatives such as 30% rooftop solar subsidies (in earlier years) and duty exemptions for solar equipment have lowered entry barriers for both consumers and manufacturers. Major schemes like PM-KUSUM for solar pumps and the Surya Ghar Muft Bijli Yojana have further expanded adoption. Additionally, the Green Energy Corridor, Solar Park Scheme, and Renewable Purchase Obligations (RPOs) have collectively bolstered the widespread integration of renewable energy.
Soaring investment: A financial juggernaut
India’s renewable energy sector has seen an exponential rise in investment. From just USD 7.9 billion in 2014, cumulative investments surged to approximately USD 84 billion (Rs7 trillion) between 2013-2014 and 2022-23. Notably, the sector attracted USD 7.9 billion in 2014 alone, marking a 13% increase from the previous year. The momentum continued into 2025, with Q1 alone witnessing a massive USD 9.84 billion in investment, a staggering 7.7-fold increase from USD 1.28 billion in Q1 2024, according to official government data.
Dramatic drop in solar PV costs: Making solar cheaper than coal
A critical factor propelling India’s clean energy revolution is the dramatic reduction in solar photovoltaic (PV) module costs. Research from the India Energy & Climate Centre (IECC) at the University of California, Berkeley, highlights a significant 95 per cent drop in costs, from over Rs 200 per watt in 2010 to under Rs 9 in 2024. Complementing this, the Ministry of New and Renewable Energy (MNRE) reports that solar tariffs, discovered through competitive bidding, have plummeted from Rs 17.91/kWh in 2010 to as low as Rs 1.99/kWh by 2020-23, making solar power now cheaper than coal in India.
Manufacturing incentives: PLI scheme fuels domestic solar growth
To strengthen the domestic renewable energy supply chain, the government launched Production-Linked Incentive (PLI) schemes in 2021. These schemes specifically target solar module and cell manufacturing, along with providing incentives for wind turbine components. This strategic move has yielded remarkable results: India’s solar module manufacturing capacity soared from 2.3 GW to 88 GW, while solar cell capacity surged from 1.2 GW to 25 GW, significantly reducing import dependence and boosting local production.
Green energy corridor: Building smart grids for renewable power flow
India’s ambitious Green Energy Corridor (GEC) initiative, launched in 2015, has seen substantial investment from both state and central governments. Its core objective is to bolster the transmission infrastructure for renewable energy, both within and between states. As of March 2025, GEC-Phase I has successfully commissioned over 9,136 circuit-kilometres of transmission lines and 21,413 MVA of substation capacity. This robust infrastructure is crucial for evacuating nearly 20 GW of renewable energy capacity across eight states, ensuring efficient power flow from generation sites to consumption centres.
A decade of transformation: Key milestones (2014-2017)
The period between 2014 and 2017 marked a pivotal phase in India’s renewable energy journey, characterised by aggressive target setting, policy reforms, and rapid capacity additions:
2014: Foundations for growth: In 2014, India’s renewable energy capacity (excluding large hydro) stood at approximately 35.8 GW, comprising 2.82 GW solar, 21.04 GW wind, and 3.80 GW small hydro, according to MNRE data. The Jawaharlal Nehru National Solar Mission was actively in its Phase-II, initially targeting 20 GW of solar capacity by 2022.
2015: Global pledges and domestic reforms: At COP21 in Paris, India boldly reaffirmed its climate goals, committing to a 100 GW solar target by 2022 and co-launching the International Solar Alliance. Domestically, the government introduced the UDAY scheme to reform power distribution companies (DISCOMs), tightened Renewable Purchase Obligation (RPO) targets, and enabled Renewable Energy Implementing Agencies (REIRAs) to issue green bonds. Large auctions by entities like SECI and NTPC spurred significant growth, boosting solar capacity to 6.5 GW by March 2016.
2016: Solar parks and wind auctions propel renewable capacity surge: Momentum accelerated in 2016 as the MNRE launched viability-gap funding for solar parks and initiated offshore wind auctions. Solar tariffs continued to fall, reaching Rs4.5–5.0 per unit, while wind auctions commenced with SECI’s first 100 MW bid. This period saw a surge in capacity additions, with 5.66 GW of solar and 5.50 GW of wind, primarily driven by large-scale projects like the 1 GW Kurnool solar park.
2017: India surpasses original 20 GW solar target: Bharat impressively surpassed its original 20 GW solar target ahead of schedule in 2017, largely benefiting from supportive policies such as NSM Phase-II and early rooftop solar schemes. Concurrently, initial steps were taken towards developing a National Wind–Solar Hybrid Policy, with pilot programs commencing in selected states to explore combined renewable energy solutions.
Further expansion and ambitious targets (2019-2025)
The latter half of the decade witnessed further strategic initiatives and a definitive push towards even more ambitious renewable energy targets:
2019: Decentralised solar gains momentum with PM-KUSUM
In 2019, the government launched key initiatives like PM-KUSUM (March) to promote solar pumps and small-scale solar for farmers, directly boosting agricultural sustainability. The year also saw the introduction of auctions for hybrid wind-solar projects. FY2019-20 saw substantial capacity additions of 6.51 GW solar and 2.12 GW wind. The MNRE also launched the UMREPP scheme to streamline land and generation for large renewable parks, accelerating project development.
2021: COP26 pledges – 450 GW renewable and 500 GW non-fossil power targets
At COP26, India made significant international commitments. It announced a renewable energy target of 450 GW by 2030 (encompassing solar, wind, small hydro, and biomass). Further, under its updated Nationally Determined Contribution (NDC), India committed to achieving 500 GW of non-fossil fuel power capacity by 2030, which includes large hydro and nuclear energy, signalling a resolute long-term vision.
2025: Wind crosses 50 GW, focus shifts to storage and distributed renewables
By March 2025, India’s wind power capacity notably surpassed 50 GW, a milestone reported in a government fact sheet that also highlighted strong quarterly additions (1.875 GW in Q1 2025). Concurrently, cumulative non-fossil fuel power reached 228 GW, indicating a growing emphasis on energy storage solutions and distributed renewable energy systems to enhance grid stability and reliability.
June 2025: Record surge in renewable energy capacity
On July 12, 2025, the Union Minister for New and Renewable Energy announced a remarkable surge in India’s renewable energy growth. Capacity additions skyrocketed by 420 per cent year-on-year in June 2025, leaping from 1.4 GW in June 2024 to an impressive 7.3 GW, reflecting accelerated deployment and the sector’s robust expansion.
India’s journey in renewable energy from 2014 to 2025 showcases a remarkable and accelerated transition towards sustainable power. Driven by strategic policy interventions like the International Solar Alliance, favourable FDI policies, and robust subsidies and schemes, the nation has dramatically increased its green energy footprint. The significant drop in solar PV costs and strong domestic manufacturing incentives have further fueled this growth, making clean energy increasingly viable.
Crucially, this period saw India set and then surpass ambitious targets, culminating in the achievement of 50% non-fossil fuel power capacity five years ahead of its Paris Climate Target. The consistent rise in capacity, particularly the 420 per cent surge in June 2025, underscores the momentum. As India continues to integrate smart grids, storage solutions, and decentralised renewables, it’s firmly on track to meet its 500 GW non-fossil fuel target by 2030, solidifying its position as a global leader in the clean energy transition.
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