India’s renewable power capacity has crossed 300 GW, nearly four times its 2015 level, and is on track to reach 530 GW by 2030, according to the International Energy Agency (IEA) in its India Renewable Energy Market Report 2026. The agency said India became the world’s second-largest market for renewable capacity deployment in 2025 and is expected to keep that position through 2030.
The country met its target of drawing 50% of installed electricity capacity from non-fossil sources in 2025, five years ahead of schedule. In April 2026, it submitted an updated nationally determined contribution targeting a 60% non-fossil share of installed capacity by 2035.
Capacity
Renewable additions reached 49 GW in 2025, more than triple the average of the previous five years, and the IEA expects stronger growth in 2026. Annual additions are projected to stay above 50 GW through 2030, and could reach 70 GW in 2030 under an accelerated case.
Solar photovoltaic (PV) makes up more than 80% of deployment, led by utility-scale plants. Solar PV capacity is expected to rise 2.5 times to above 350 GW by 2030. Wind is forecast to reach almost 90 GW and conventional hydropower about 60 GW, while pumped storage is expected to nearly double to almost 15 GW.
Distributed solar for self-consumption is set to triple to more than 100 GW by 2030. The report points to the PM Surya Ghar Muft Bijli Yojana for residential rooftops and PM-KUSUM for agricultural feeders and irrigation pumps. Corporate power purchase agreements are expected to underpin about 20% of utility-scale solar PV and wind additions by 2030.
Generation and costs
Renewable generation reached almost 500 TWh in 2025, close to a quarter of total electricity generation. It is projected to nearly double to 950 TWh by 2030, lifting the share to 35%. The share of variable renewable energy is expected to rise from about 14% to roughly 26% over the same period.
Utility-scale solar PV in India has the world’s second-lowest levelised generation cost, at USD 30-35/MWh. Tariffs for solar projects commissioned in 2025 were around 40% below the average cost of coal-fired power. India has awarded over 220 GW of utility-scale renewable capacity through auctions since 2010, including 15 GW of hybrid projects in 2025, taking cumulative hybrid auctions to 64 GW, the largest volume globally.
Manufacturing and fuels
Annual solar PV module manufacturing capacity stood at around 225 GW in September 2026 and is projected to rise further by 2030, keeping India the world’s second-largest producer. The IEA expects India to become the second-largest wind manufacturer by 2030.
Biofuel production grew sixfold between 2020 and 2025. Liquid biofuel consumption reached around 11 billion litres in 2025 and is projected to hit 16 billion litres by 2030. Electric vehicles made up more than 11% of new vehicle sales in 2026.
Sustainable feedstock could support biogas output of up to 75 billion cubic metres equivalent a year, close to current natural gas demand. With natural gas import dependence rising from 52% in 2024 to around 71% by 2030, the report says scaling up biogas could strengthen energy security.
Energy security and finance
The IEA estimates that renewables saved more than USD 100 billion in coal and gas import spending between 2011 and 2025, and that the figure could approach USD 240 billion by 2030. Solar PV accounts for about 60% of these savings and wind almost 30%.
India attracted USD 72 billion in energy-transition investment in 2025 and plans transmission capacity to connect 336 GW of renewables by 2032. The median cost of capital for utility-scale solar PV was 10.8% in 2024, against an estimated 5.5-7% in advanced economies.
Challenges
The report lists faster grid and storage development, streamlined project implementation, variable renewable integration, DISCOM financial health, land acquisition and permitting as key hurdles. It says resolving them quickly could raise renewable capacity deployment over 2026-2030 by more than 20%.
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Read More DERC issues orders on rooftop solar, FPPAS and EV charging
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued draft amendments to the Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive System) Regulations, 2015, proposing changes aimed at simplifying rooftop solar adoption and reducing procedural requirements for consumers. The proposed Fourth Amendment Regulations, 2026, seek to streamline the application process and remove the…
Read More HPERC proposes simpler rooftop solar application process
KP Group signed a Memorandum of Understanding (MoU) with the Government of Botswana on 17 December 2025 to collaborate on large scale renewable energy generation, storage, and transmission infrastructure. The proposed investment is estimated at $4 billion (Rs 36,000 crore) and is aligned with Botswana’s target of becoming a net zero country by 2030 and…
Read More KP Group signs MoU with Botswana for $4 billion renewable push
Rajesh Power Services Limited has secured turnkey contracts worth Rs 471.92 crore, inclusive of taxes, from Madhya Gujarat Vij Company Limited (MGVCL) to strengthen electricity distribution infrastructure across Gujarat. The orders are to be executed over 18 months. The company said they add over 10% to its order book in a single stroke, taking the…
Read More Rajesh Power Services bags Rs 471.92 crore MGVCL contracts
The Ministry of Mines has completed the fifth tranche of auctions, successfully awarding 10 blocks containing critical and strategic minerals across six states. The auctioned blocks include graphite, phosphorite, phosphate, rare earth elements (REE), vanadium, potash, and halite. These are located in Chhattisgarh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh. Coal India Limited (CIL)…
Read More Ministry of Mines auctions 10 critical mineral blocks in fifth tranche
Max Infra I Private Limited has emerged as the lowest bidder for a major civil works package for the 260 MW Dulhasti Stage-II Hydroelectric Project in Kishtwar, Jammu and Kashmir. The contract covers a comprehensive engineering, procurement and construction package under Lot-I, which includes all civil works for the project. The scope of work includes…
Read More Max Infra leads bid for NHPC’s Dulhasti Stage II hydro project civil works
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