India Becomes the World’s Second-Largest Solar Growth Market – Vajiram & Ravi

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India became the world’s second-largest solar growth market in 2025, adding 37 GW capacity and strengthening its leadership in renewable energy.
By Vajiram Content Team – Jun 5, 2026, 18:18 IST
Why in news: According to the latest International Renewable Energy Agency (IRENA) report, India added 37 GW of solar capacity in 2025, compared with 34 GW added by the US, making India the world’s second-largest solar growth market. China remained the largest, adding 315 GW during the year.
For the first time, India emerged as the world’s second-largest solar growth market in 2025, underscoring the rapid expansion of its renewable energy sector and its growing role in the global clean energy transition.
Solar Capacity Additions (2025): 
India’s Installed Solar Capacity: 
Solar Power Generation: 
Overall Renewable Energy Installed Capacity (December 2025): 
1
China
2,258.02
2
United States
467.92
3
India
250.52
4
Brazil
228.20
5
Germany
199.92
India’s solar sector has witnessed unprecedented growth over the last decade, with the pace of capacity addition accelerating significantly in recent years.
2.7 GW (2014) to 50 GW
96 months
50 GW to 100 GW
36 months
100 GW to 150 GW
14 months
Other Key Milestones: 
India’s rise as the world’s second-largest solar growth market has been driven by strong policy support, expansion of solar infrastructure, promotion of domestic manufacturing, and continuous technological innovation.
PM Surya Ghar: Muft Bijli Yojana: Launched in 2024, it aims to install rooftop solar systems on 1 crore households and provide up to 300 units of free electricity per month.
Production Linked Incentive (PLI) Scheme: The scheme promotes domestic manufacturing of solar modules and cells to reduce import dependence.
Solar Parks and Ultra Mega Solar Power Projects: Provides land, transmission connectivity, and other infrastructure for large-scale solar projects.
Green Energy Corridors (GEC): The Green Energy Corridor (GEC) programme develops dedicated transmission infrastructure to transport electricity from renewable energy-rich states such as Rajasthan and Gujarat to major consumption centres across the country, ensuring seamless integration of solar and wind power into the national grid.
PM-KUSUM Scheme: PM-KUSUM promotes the solarisation of agriculture through solar pumps and feeder solarisation, helping farmers reduce energy costs and earn additional income.
Renewable Purchase Obligations (RPOs) and Domestic Content Requirement (DCR): These measures support both renewable energy demand and domestic manufacturing.
Research and Innovation::India is making progress in next-generation solar technologies.
India’s emergence as the world’s second-largest solar growth market marks a major milestone in its clean energy transition, strengthening its energy security, climate leadership, and economic competitiveness.
Date IconLast updated on June, 2026
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Q1. What is India’s rank in global solar capacity additions in 2025?+
Ans. India is the second-largest solar growth market in 2025 after China.
Q2. Which policy measures have driven India’s solar energy growth?+
Ans. India’s solar expansion is driven by targeted schemes like PM Surya Ghar, PM-KUSUM, PLI for manufacturing, Solar Parks, Green Energy Corridors, and supportive regulatory tools like RPOs.
Q3. What are the major challenges in India’s solar sector?+
Ans. The key challenges include grid integration issues, dependence on imported components, land constraints, uneven state-level distribution, and lack of robust solar waste management systems.
Q4. What is India’s rank in total renewable energy capacity globally?+
Ans. India ranks third in total installed renewable energy capacity after China and the United States.
Q5. What is India’s major long-term target in renewable energy?+
Ans. India aims to achieve 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070.
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