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India’s renewable energy capacity is projected to reach around 530 GW by 2030, driven primarily by solar power, which is expected to account for more than 80% of the capacity additions, according to the IEA.
The country’s renewable energy expansion has positioned it as the world’s second-fastest-growing renewable energy market and the second-largest manufacturer of solar photovoltaic (PV) modules. India’s renewable power capacity surpassed 300 GW in the fourth quarter of 2026, nearly quadrupling over the past decade.
The country also achieved its target of sourcing 50% of its installed power capacity from non-fossil fuel sources in 2025, five years ahead of schedule. In addition, India has emerged as the world’s fourth-largest liquid biofuel market, with production increasing sixfold between 2020 and 2025.
According to the IEA, sustained policy support, investment in renewable energy infrastructure and long-term planning have contributed to India’s growth in the clean energy sector.
The IEA noted that India’s renewable energy expansion is also reducing its dependence on imported fossil fuels. Without the solar PV, wind and bioenergy capacity added since 2010, coal imports in 2025 would have been approximately 110 million tonnes higher, while the import dependence of electricity generation would have exceeded 30%, nearly twice the actual level.
Renewable electricity helped India save more than USD 100 billion in cumulative coal and natural gas import expenditure between 2011 and 2025. These savings are expected to more than double by 2030.
Solar PV is expected to remain the primary driver of India’s renewable energy growth, with installed capacity projected to exceed 350 GW by 2030. Wind capacity is expected to approach 90 GW, while hydropower capacity is forecast to reach 75 GW.
Renewable electricity generation exceeded 500 TWh in 2025, accounting for around one-quarter of India’s total electricity supply. The IEA projects this figure to approach 950 TWh by 2030, meeting approximately 35% of the country’s electricity demand.
Solar PV overtook hydropower as India’s largest source of renewable electricity in 2025 and is expected to contribute more than half of renewable generation by 2030.
The share of variable renewable energy, including solar and wind, in India’s electricity supply is projected to increase from around 14% to approximately 26% by 2030. This is expected to increase the requirement for grid infrastructure, energy storage and power system flexibility.
Distributed solar PV capacity for self-consumption is projected to triple to more than 100 GW by 2030, supported by residential rooftop installations and commercial and industrial demand.
The PM Surya Ghar Muft Bijli Yojana is accelerating residential rooftop solar adoption, while PM-KUSUM is supporting the solarisation of agricultural feeders and irrigation pumps.
Corporate renewable energy procurement is also expected to become a significant source of demand. Corporate power purchase agreements are projected to support around 20% of utility-scale solar and wind capacity additions by 2030, aided by reforms in open-access renewable energy procurement.
India’s solar PV manufacturing capacity reached approximately 225 GW in September 2026 and is expected to increase further by 2030, strengthening its position as the world’s second-largest solar module manufacturer.
The IEA highlighted the role of industrial policies, including the Production Linked Incentive (PLI) scheme and domestic sourcing requirements, in attracting investments into solar manufacturing.
India is also targeting strategic upstream segments of the solar PV supply chain, where global dependence on imports from China exceeds 95%. Its wind manufacturing industry is expanding as well, with the country projected to become the world’s second-largest wind equipment manufacturer by 2030.
Despite the progress in renewable energy deployment, the IEA identified grid infrastructure, energy storage and power system flexibility as important requirements for India’s next phase of growth.
Faster transmission expansion, improved forecasting and dispatch systems, increased energy storage deployment and greater flexibility from conventional power plants will be required to integrate higher shares of variable renewable energy.
The report also highlighted the need to improve the financial position of distribution companies (DISCOMs), streamline land acquisition and permitting processes, and reduce project execution delays, particularly for wind and hydropower projects.
Addressing these challenges could accelerate renewable power capacity deployment during 2026-2030 by more than 20%.
The IEA also called for more efficient and extensive feedstock supply chains, supported by sustainability standards, to accelerate the adoption of biogas, biofuels and solid bioenergy.
India’s renewable energy expansion is expected to remain central to its energy security objectives and its longer-term ambition of achieving net-zero greenhouse gas emissions by 2070.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
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