India is rapidly growing its renewable energy sector as it works to meet rising electricity demand while keeping its climate goals in focus. By September 2025, coal continued to be the dominant source of power, contributing 43.41% of the nation’s total installed capacity. However, renewable energy, particularly solar and wind, is becoming a key part of the energy mix and expanding at an impressive pace.

In the first nine months of 2025 alone, India added 29,467.55 MW of new solar capacity, showing the strong momentum in the solar segment. This growth has been supported by several government initiatives aimed at ensuring quality and promoting local production. One of the most important measures is the Approved List of Models and Manufacturers, which enforces quality standards for solar modules and encourages domestic manufacturing. Thanks to this framework, India reached 116 GW of solar PV module manufacturing capacity by October 2025. This milestone highlights the country’s determination to strengthen its self-reliance and reduce dependence on imported components.

By the end of September 2025, renewable energy sources made up 39.37% of India’s total installed power capacity. Solar energy has been the largest contributor to this expansion. The country’s total installed solar capacity reached 127.33 GW, accounting for 64.57% of the total renewable capacity. Solar alone now contributes 25.42% to India’s overall power mix, representing a 44.29% increase compared to the previous year. This rapid growth clearly shows how fast solar projects are being deployed across the country.

India’s total installed power capacity surpassed 500 GW in September 2025, recording an annual growth of 10.64%. Despite this significant rise in renewable capacity, coal-based power still generates nearly half of India’s electricity. This underlines the continuing challenge of transitioning completely to clean energy while ensuring reliability and affordability. As more renewable power, which is variable in nature, is added to the grid, issues such as grid stability and uninterrupted supply have become key focus areas for the power sector.

The expansion of renewable energy is also bringing social and economic benefits to the country. Solar and wind projects are generating employment opportunities, especially in rural and semi-urban areas. These projects are improving access to electricity, supporting local economies, and contributing to the development of remote regions. As a result, they are helping improve the quality of life for many communities.

A major advantage of this shift toward renewables is the strengthening of India’s energy security. Increasing the share of renewable energy reduces dependence on imported fossil fuels and shields the economy from global fuel price fluctuations. At the same time, technological advances in energy storage and grid management are making renewable power more reliable and easier to integrate into the system.

Global market changes are also opening new opportunities for Indian solar manufacturers. While coal continues to play a major role, the steady rise of renewables, especially solar, reflects India’s strong commitment to building a cleaner, more self-reliant, and secure energy future that supports both economic growth and sustainability.

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