India’s installed solar PV capacity is expected to exceed 350 GW (nearly 450 GW in DC) by 2030, according to a new report by the International Energy Agency (IEA).
The India Renewable Energy Market Report 2026, launched at the Bharat Renewable Energy Summit in New Delhi, projects India’s total installed renewable power capacity to reach around 530 GW by 2030, with solar PV accounting for the largest share of growth. Wind capacity is expected to approach 90 GW, while hydropower is projected to reach 75 GW as large hydropower projects are commissioned and investment in pumped storage accelerates.
The expansion is expected to put India on track to meet its target of 500 GW of non-fossil fuel-based installed power capacity by 2030, an important milestone towards its ambition of achieving net-zero greenhouse gas emissions by 2070.
Strong cost competitiveness, sustained auction activity, growing open-access procurement and accelerating rooftop installations are expected to underpin India’s solar PV expansion.
Utility-scale projects have accounted for around 75% of solar PV capacity additions over the past five years. The IEA expects their share to gradually decline to approximately 70% by 2030 as policy support, improving economics and simplified administrative procedures accelerate growth in the distributed segment.
Distributed solar PV capacity for self-consumption is projected to triple to more than 100 GW by 2030. The PM Surya Ghar Muft Bijli Yojana is accelerating residential rooftop installations, while PM-KUSUM supports the solarisation of agricultural feeders and irrigation pumps.
Corporate procurement is also emerging as a major source of demand. Open-access reforms have simplified renewable procurement for commercial and industrial consumers, with corporate power purchase agreements expected to underpin around 20% of utility-scale solar PV and wind capacity additions by 2030.
The report finds that India’s renewable power capacity has almost quadrupled over the past decade, surpassing 300 GW in 2026. The country is now the world’s second-fastest-growing renewables market and second-largest manufacturer of solar PV modules. India also reached its target of 50% non-fossil installed power capacity in 2025, five years ahead of schedule.
The report states that India’s renewables expansion is already delivering substantial energy security benefits. Renewable electricity saved India more than $100 billion in coal and natural gas import costs between 2011 and 2025, with cumulative savings expected to more than double by 2030. Without the solar PV, wind and bioenergy capacity added since 2010, India’s coal imports in 2025 would have been around 110 million tonnes higher.
“India’s renewables expansion is delivering major benefits for its energy security at a time of heightened uncertainty in global energy markets,” said IEA Executive Director Fatih Birol. “As countries look to strengthen domestic energy supplies, India’s experience shows how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies. We look forward to supporting India as it builds on these achievements.”
“India’s emergence as a new giant of renewable energy reflects the progress we have made in recent years,” said India Minister of New and Renewable Energy Pralhad Joshi. “As India’s electricity needs continue to rise, we are laying the foundations for the next phase of growth by strengthening domestic manufacturing, mobilising investment and expanding transmission infrastructure.”
The report highlights how competitive auctions have helped India achieve some of the world’s lowest solar PV generation costs and become a global leader in procuring hybrid renewable projects. Growth is also spreading beyond large power plants, supported by rooftop solar, corporate electricity procurement and expanding domestic manufacturing.
However, sustaining this expansion will require faster investment in electricity grids, storage and system flexibility, alongside stronger utility finances and fewer project delays. Addressing these challenges could accelerate renewable power capacity deployment by more than 20% over 2026-2030, the report finds.
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