India's Renewable Energy Sector on Track for Ambitious Targets

India's Renewable Energy Sector Sees Significant Growth in FY 2024-25

India’s renewable energy sector has experienced substantial growth in the financial year 2024-25, with a notable 35% increase in capacity addition compared to the previous year. The country added around 25 GW of renewable energy capacity, marking a sharp rise from the 18.57 GW added in FY 2023-24. A key contributor to this growth has been the solar sector, which saw a major boost. Solar capacity increased from 15 GW in FY 2024 to nearly 25 GW in FY 2025.

In addition to the surge in solar energy capacity, India’s solar module manufacturing capacity has nearly doubled. The country’s manufacturing capacity for solar modules rose from 38 GW in March 2024 to 74 GW by March 2025. This expansion is further supported by the establishment of the country’s first ingot-wafer manufacturing facility, which began production this year.

India’s efforts to enhance its solar manufacturing sector have been strengthened through investments under the Production Linked Incentive (PLI) scheme, which attracted Rs 41,000 crore in funding. The PLI scheme has already created jobs for nearly 12,000 people, contributing to the sector’s growth. Furthermore, the government is working to promote the adoption of rooftop solar power through the PM Surya Ghar Muft Bijli Yojana, which has seen more than 11 lakh installations by March 2025. Over Rs 5,437 crore in Central Financial Assistance has been disbursed to over 6 lakh beneficiaries under this initiative.

The renewable energy sector’s progress also includes significant steps towards decarbonizing other areas, such as transportation and domestic gas usage. As of April 1, 2025, India has made the blending of one percent compressed bio-gas mandatory in CNG and PNG segments. This measure aims to reduce carbon emissions in the transportation and domestic household sectors.

India’s commitment to green energy also extends to the hydrogen sector. The National Green Hydrogen Mission has funded seven pilot projects, with Rs 454 crore allocated for decarbonizing the steel sector. Additionally, five pilot projects in the transport sector have been supported with Rs 208 crore in funding, which will introduce 37 hydrogen-fueled vehicles and nine hydrogen refueling stations.

The ongoing expansion in the renewable energy sector positions India to soon become the third-largest holder of renewable energy capacity globally. With increased solar power generation, large investments in manufacturing, and a robust push for alternative fuels like bio-gas and hydrogen, India is making significant strides in meeting its sustainability goals.

Source: Information derived from the Union Ministry of New and Renewable Energy, India.