India has become the world’s second-fastest growing solar energy market, surpassing the United States after adding 37 GW of solar capacity in 2025. The country’s installed solar capacity has reached 162.15 GW, supported by falling tariffs, major government initiatives, and a strong push toward clean energy targets.
New Delhi, Aug 03: India has emerged as the world’s second-fastest growing solar energy market, overtaking the United States after installing 37 GW of new solar capacity in 2025, according to a government factsheet. The country’s installed solar power capacity has expanded nearly 50 times, rising from just 3 GW in 2014 to 162.15 GW as of June 30, 2026. This remarkable growth reflects India’s accelerated transition towards clean energy, energy security, and sustainable economic development while reinforcing its position as a global renewable energy leader.
A major driver behind this transformation has been the sharp decline in solar power tariffs through the government’s e-Reverse Auction mechanism. Increased competition among developers has reduced tariffs from around ₹18 per unit in 2010 to a record low of ₹2.44 per unit, making solar electricity one of the most affordable energy sources in the country. In 2025, the Levelised Cost of Electricity (LCOE) for utility-scale solar photovoltaic projects in India stood at $35 per MWh, significantly lower than the global average of $44 per MWh, strengthening India’s competitiveness in renewable energy investments.
The sector has received another significant boost with the approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on July 31, 2026. The ₹5,070 crore scheme aims to develop 5,000 MW of floating solar photovoltaic projects integrated with Energy Storage Systems (ESS) offering a minimum storage capacity of 10,000 MWh. By utilizing reservoirs and industrial water bodies, the initiative will reduce pressure on land resources, improve grid reliability, and help states effectively manage peak electricity demand. India’s large-scale solar parks, including Bhadla (Rajasthan), Pavagada (Karnataka), and Rewa Ultra Mega Solar Park (Madhya Pradesh), continue to play a crucial role in expanding the country’s renewable energy capacity.
India’s broader renewable energy mission is also gathering momentum. The country’s total non-fossil fuel capacity has reached 283.46 GW, including 274.68 GW of renewable energy, while renewable sources met a record 51.5% of India’s electricity demand on July 29, 2025. These achievements align with India’s Panchamrit commitments announced at COP26, including 500 GW of non-fossil fuel capacity by 2030 and achieving net-zero emissions by 2070. With sustained policy support, declining costs, and rapid capacity additions, India is strengthening its position as one of the world’s fastest-growing clean energy economies.
India’s rapid expansion in solar energy highlights its growing leadership in the global clean energy transition, supported by strong policy reforms, affordable solar power, and ambitious renewable energy targets.

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