- India’s renewable energy growth reached a record 20.1 GW in just five months of 2025.
- Annual capacity addition is expected to surpass 35 GW by the end of the fiscal year.
India’s renewable energy growth is accelerating at an unprecedented pace. Between April and August 2025, the country added 20.1 gigawatts (GW) of renewable capacity, a 123 per cent increase compared to last year. The milestone underlines India’s determination to secure energy independence while embracing sustainability.
The record expansion stems from a strong project pipeline and the expiry of interstate transmission charges waivers. Analysts at ICRA project that capacity additions may exceed 35 GW by the close of the 2025–26 fiscal year. Rising demand for electricity further strengthens the sector’s outlook.
India’s renewable energy growth benefits from favourable solar photovoltaic (PV) module pricing. In the last fiscal year, total capacity additions rose to 28.7 GW, compared with 18.5 GW in 2023–24. Policy support, competitive tariffs, and sustainability commitments from large industrial players continue to drive momentum.
Nevertheless, challenges persist. Key obstacles include land acquisition delays, weak transmission networks, and slow signing of power purchase agreements. The tendering pipeline remains robust with 40.2 GW auctioned in 2024–25. However, activity slowed to 3.4 GW in the first half of 2025–26.
Solar module pricing remains attractive to developers. In August 2025, imported N-type modules averaged 8–9 cents per watt, while domestic prices stood at 15–17 cents due to the Approved List of Modules and Manufacturers (ALMM). Despite higher costs, projects remain commercially viable.
Exports add another layer of strength. Solar cell and module exports rose by 21 per cent year-on-year in the first four months of 2025–26. Yet, new 50 per cent tariffs imposed by the United States threaten competitiveness and may reduce volumes.
Despite hurdles, India’s renewable energy growth remains resilient. With strong domestic demand, clear policy direction, and investor confidence, India firmly positions itself as a global clean energy leader.