In August 2026, the PM Surya Ghar: Muft Bijli Yojana crossed 50.06 lakh households benefiting from rooftop solar installations, with July recording the highest monthly figure since the scheme’s launch. The scheme has commissioned 14.8 GW of rooftop solar capacity, while Rs. 28,024 crore (US$ 2.95 billion) in subsidies has been transferred directly to beneficiaries. Nearly 19 lakh households are receiving zero electricity bills, while more than 12 lakh households earned Rs. 421 crore (US$ 44.38 million) from surplus power sales in FY25. The scheme has also solarised 1.06 lakh government buildings and registered 34,219 vendors, supporting the expansion of India’s rooftop solar ecosystem.
In July 2026, the government promoted convergence between PM-KUSUM and PM Surya Ghar: Muft Bijli Yojana with other Central and state programmes to accelerate solar adoption and improve rural energy self-sufficiency. PM-KUSUM can converge with schemes such as the Agriculture Infrastructure Fund (AIF), Revamped Distribution Sector Scheme (RDSS), Per Drop More Crop and Gram Urja Swaraj Campaign, while PM Surya Ghar can leverage the Solar Didi Programme and District Mineral Foundation (DMF) funds to support eligible beneficiaries, particularly Below Poverty Line (BPL) households and other vulnerable sections.
In July 2026, the Ministry of New and Renewable Energy (MNRE) implemented the New Solar Power Scheme under PM-JANMAN and DAJGUA to electrify un-electrified tribal and Particularly Vulnerable Tribal Group (PVTG) households through off-grid solar systems, with 100% Central Financial Assistance. The scheme targets one lakh households and 1,500 Multi-Purpose Centres (MPCs), with assistance of up to Rs. 50,000 per household (US$ 527.04) and Rs. 1 lakh per kW for public institutions. As of June 30, 2026, Rs. 57.10 crore (US$ 6.02 million) had been released, with 11,838 households electrified through off-grid solar systems. Separately, under the Revamped Distribution Sector Scheme (RDSS), grid electrification has been sanctioned for 1,39,126 PVTG households across 13 states, of which 1,38,620 households had been electrified as of July 24, 2026.
As of June 30, 2026, India’s installed wind power capacity reached 57,443 MW, with Gujarat leading at 16,086 MW, followed by Tamil Nadu at 12,273 MW and Karnataka at 8,896 MW. Wind power generation increased to 106.70 billion units in FY26, compared with 83 billion units in each of FY24 and FY25. During FY26, India added a record 6,057 MW of wind capacity, up from 4,151 MW in FY25. India ranked fourth globally in wind energy installations as of December 31, 2025, according to the Global Wind Energy Council (GWEC) Report 2026.
India’s renewable energy capacity (excluding large hydro) reached ~240 GW as of July 2026, driven by strong additions in solar and wind segments. Including large hydro, total renewable capacity stood at 291.72 GW, reflecting steady progress towards the 500 GW non-fossil capacity target by 2030
Installed capacity of large hydro projects in India increased from 45.29 GW in FY18 to 52.06 GW as of July 2026, while small hydro capacity rose from 4.49 GW to 5.18 GW over the same period.
As of June 30, 2026, India’s total installed power generation capacity stood at 549 GW. Coal remained the largest source, accounting for 42.05% of total installed capacity, followed by solar (29.54%), wind (10.47%), hydro (9.49%), oil and gas (3.77%), bio-power (2.14%) and nuclear (1.60%). Collectively, non-fossil fuel sources accounted for 53.24% of India’s installed power capacity, reflecting the growing share of cleaner energy sources in the country’s power mix.
In May 2026, India’s installed renewable energy capacity, including large hydro projects, stood at 282.75 GW, underscoring the country’s continued progress in expanding its clean energy portfolio. India has emerged as a global leader in renewable energy, ranking third in installed capacity worldwide as per IRENA RE Statistics 2026 with data as on December 2025. As of May 2026, India’s total installed power generation capacity stood at 542.35 GW. Coal remained the largest source, accounting for 42.43% of the total installed capacity, followed by solar (28.96%), wind (10.47%), large hydro (9.58%), oil & gas (3.82%), bio power (2.17%), nuclear (1.62%), and small hydro (0.96%). Backed by strong government commitment, the country is rapidly expanding clean energy adoption through large-scale projects and policy support. This transition not only contributes to climate goals but also creates significant employment opportunities, particularly in rural regions.
On June 4, 2026, the Ministry of New and Renewable Energy (MNRE) announced that the PM Surya Ghar: Muft Bijli Yojana had crossed 40 lakh beneficiary households within two years of its launch. More than 33 lakh rooftop solar systems, with a cumulative capacity exceeding 12 GW, had been installed by May 2026, while over one crore households had registered under the scheme. The Government has set a target of reaching 75 lakh rooftop solar installations by December 2026, reinforcing India's transition towards distributed renewable energy and energy self-reliance.
India recorded FDI equity inflows of Rs. 5,16,936 crore (US$ 58.85 billion) in FY26, registering an 23% year-on-year increase, compared to Rs. 4,21,929 crore (US$ 50.02 billion) in FY25. The non-conventional energy sector attracted FDI inflows of Rs. 26,412 crore (US$ 3.02 billion), accounting for approximately 5.1% of the total FDI received during FY26 and remaining among the key sectors attracting foreign investment.
India has already surpassed several of its climate commitments. Under the PM Surya Ghar Muft Bijli Yojana, the Government of India aims to install rooftop solar plants in one crore households by 2026-27. India’s rooftop solar programme under PM Surya Ghar has witnessed accelerated progress, with over 9.56 GW of rooftop solar capacity installed as of March 2026. This marks a significant increase from earlier figures, with the scheme rapidly expanding beyond 23.96 lakh households covered as of December 2025, indicating strong momentum towards the target of one crore solar-powered homes.
The Government of India is accelerating rooftop solar adoption under the PM Surya Ghar Muft Bijli Yojana, targeting installations in one crore households by 2026-27, with 26.19 lakh systems installed as of March 19, 2026. The scheme has disbursed Rs. 17,967.53 crore (US$ 2.03 billion) as Central Financial Assistance, supported by a fully digital, time-efficient subsidy mechanism with an average processing time of around 15 days.
India’s power sector has witnessed record expansion, with total installed generation capacity reaching 520.51 GW as of January 2026, supported by the highest-ever annual addition of over 52.54 GW in FY2025–26 (till Jan 2026). Of this, 39,657 MW comes from renewable energy, including 34,955 MW of solar power and 4,613 MW of wind power, highlighting the dominant role of clean energy.
Installed capacity of large hydro projects in India increased from 44.48 GW in FY17 to 51.96 GW as of May 2026, while small hydro capacity rose from 4.38 GW in FY17 to 5.17 GW over the same period
As of December 2025, around 23.90 lakh households had installed rooftop solar systems with a capacity of ~7 GW, supported by subsidy disbursements of Rs. 13,464.60 crore (US$ 1.52 billion) under the PM Surya Ghar scheme
By October 31, 2025, renewable energy accounted for 39.66% of India’s total installed power capacity, led by solar, which reached 129.92 GW and represented 64.87% of the overall renewable capacity.
Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 18.5% between FY16 and FY26 (as of October 2025). India has 250.6 GW of renewable energy capacity in FY26 (as of October 2025).
The momentum is equally evident in power generation. Power generation from renewable energy sources stood at 188.35 billion units (BU) in FY26 (April-October 2025), up from 152.96 BU during the same period in the previous year.
Installed capacity from large hydro projects in India increased from 35.9 GW in March 2008 to 50.34 GW as of October 2025, while capacity from small hydro plants increased four-fold to 5.16 GW in the same period.
As of October 2025, renewable energy sources, including Small Hydro Power, Wind Power, Solar Power and Bio-Power, have a combined installed capacity of 2,00,295 MW.
As India is expected to account for 35% of global energy demand growth over the next two decades, its green transition is being reinforced by strategic investments not only in solar and wind but also in natural gas, LNG, and hydrogen. This integrated approach balances availability, affordability, and sustainability, positioning India as a global powerhouse in clean energy.
The Union Budget for 2025-26 has notably enhanced allocations for the renewable energy sector, with budget estimates for the Ministry of New and Renewable Energy (MNRE) totalling Rs. 256.49 crore (US$ 3.03 billion). This represents a 39% increase compared to last year's initial budget estimates of Rs. 19,100 crore (US$ 2.26 billion).
L&T will construct India’s largest green hydrogen plant at IOCL’s Panipat refinery to support the National Green Hydrogen Mission and decarbonise refinery operations. The facility will run on renewable energy and use high-pressure alkaline electrolysers made by L&T Electrolysers Ltd at its Hazira unit in Gujarat
On August 05, 2025, Hindustan Power has signed a power purchase agreement with Uttar Pradesh Power Corporation Ltd. to set up a 435 MW DC solar power project. The project will supply clean electricity to the state for 25 years, aligning with Uttar Pradesh’s target of achieving 22,000 MW of clean energy capacity by 2026-27.
NLC India Limited has secured a Letter of Award from NTPC for a 450 MW ISTS-connected wind-solar hybrid project under a competitive bidding process. With a 30% minimum CUF and a 25-year PPA, the project enhances NLCIL’s hybrid capacity to 600 MW and supports its 10 GW renewable energy target by 2030.
The Union Budget 2026-27 continues to support the Nuclear Energy Mission with a long-term target of achieving 100 GW capacity by 2047, backed by an earlier allocation of Rs. 20,000 crore (US$ 2.28 billion).
Foreign direct investment (FDI) in India’s renewable (non-conventional) energy sector has increased significantly from Rs. 171.52 crore (US$ 195 million) in FY11 to Rs. 34,606.94 crore (US$ 4,002 million) in FY25, reflecting strong investor confidence. The sector’s share in total FDI inflows also rose to 8.0% in FY25, compared to 1.0% in FY11. In FY26 (till September 2025), FDI stood at around Rs. 17,495 crore (US$ 1,989 million), with a share of 5.7% in total FDI inflow.
On February 11, 2026, Premier Energies entered into a joint venture with BA Prerna Renewables to expand its presence in the renewable energy EPC segment. The JV, structured as a 51:49 partnership, will undertake solar, wind, battery storage, and hybrid projects, offering end-to-end solutions. The collaboration is expected to strengthen execution capabilities and enhance the company’s footprint across the renewable energy value chain in India.
On February 10, 2026, Coal India Limited approved the formation of joint ventures to develop renewable energy projects as part of its clean energy diversification strategy. The company will invest around Rs. 3,132 crore (US$ 342.39 million) as equity in projects with a total estimated cost of Rs. 20,886 crore (US$ 2.31 billion) under a 70:30 debt-equity structure.
On February 9, 2026, ACEN Renewables International consolidated its joint venture with UPC Renewables in India, taking 100% ownership of the platform to strengthen its market presence. The acquisition includes a portfolio of 819 MW of projects under construction and development, along with a pipeline of nearly 7 GW of renewable energy projects.
On December 22, 2025, ArcelorMittal announced plans to expand its renewable energy portfolio in India with three projects totalling 1 GW of solar and wind capacity, supported by an investment of around Rs. 7,953 crore (US$ 900 million). The projects are located in Maharashtra, Rajasthan, and Gujarat, include integrated battery energy storage systems and are expected to be completed between 2027 and 2028. Upon completion, the company’s renewable capacity in India will double to 2 GW, contributing to its global renewable portfolio of 3.3 GW.
India was the world’s largest recipient India and the Netherlands are set to strengthen their clean energy collaboration by establishing a green and digital corridor between Indian ports and the Port of Rotterdam.
On November 19, 2025, KPI Green Energy Ltd and Inox Solar Ltd signed an MoU to jointly develop 2.5 GW of solar and hybrid renewable-energy projects across India.
On October 22, 2025, Coal India Limited signed a Memorandum of Understanding with Indian Institute of Technology Madras to establish a “Centre for Sustainable Energy” focused on developing low-carbon technologies, repurposing coal mines and building human capital for India’s clean-energy transition.
On September 23, 2025, a report by National Institute of Solar Energy (NISE) estimated that India has a feasible ground-mounted solar photovoltaic potential of 3,343.37 GWp across 27,571 sq km of wasteland, sharply up from the 748.98 GWp estimated in 2014.
NHPC Ltd will commission 2,170 MW of new hydropower capacity by the end of FY26, including the 2,000 MW Subansiri Hydropower Project in Arunachal Pradesh, which will become the largest hydroelectric project in India once fully operational.
Avaada Group announced on April 29, 2025, that it has signed an initial agreement with the Maharashtra government to develop two pumped storage projects in the state, with a combined capacity of 3,600 megawatts (MW). The projects, which include the 2,400 MW Pawana Falyan and the 1,200 MW Sirsala, will require a cumulative investment of Rs. 15,100 crore (US$ 1.77 billion). As stated by the company, these initiatives are expected to create over 3,800 direct employment opportunities.
In February 2025, Emmvee Group, a Bengaluru-based manufacturer of solar photovoltaic panels, announced that it will invest Rs. 15,000 crore (US$ 1.7 billion) to establish a manufacturing facility and generate 10,000 jobs.
State-owned power giant NTPC announced on February 24, 2025, that it has signed preliminary agreements to invest over Rs. 2 lakh crore (US$ 23.6 billion) in a range of renewable energy projects in Madhya Pradesh, including solar, wind, pumped hydro storage, non-fossil fuel-based initiatives, and other carbon-neutral ventures.
India's National Electricity Plan (Transmission) aims to boost inter-regional capacity to 168 GW by 2031-32, adding 191,474 circuit km of transmission lines and 1,274 GVA of transformation capacity. It includes 33.25 GW of HVDC links, cross-border interconnections, and increased private sector participation to enhance grid efficiency.
BPCL plans US$ 1.19 billion (Rs. 10,029 crore) for green energy, targeting 2 GW by 2025, 10 GW by 2035, and 7,000 EV chargers in five years.
On September 30, 2024, the Rajasthan government signed an MoU with NTPC Green Energy for 28,500 MW of renewable energy-based projects, as part of the total 31,825 MW of power generation projects worth Rs. 1.6 lakh crore (US$ 19.18 billion). This massive renewable energy investment is aimed at making Rajasthan self-reliant in the energy sector and significantly expanding the state's renewable power capacity.
India's share of renewable energy in total foreign direct investment (FDI) inflows rose from about 1% in FY21 to around 8% in FY25. The renewable energy sector attracted US$ 3.4 billion in FDI in the first three quarters of FY25, nearly matching the total FDI for the entire FY24 at US$ 3.7 billion, reflecting growing global investor interest in India's clean energy transition.
India is set to invest over US$ 360 billion in renewable energy and infrastructure by 2030, with US$ 190 billion to US$ 215 billion needed to achieve 500 GW of renewable capacity. An additional US$ 150 billion to US$ 170 billion will be required for electricity transmission and storage.
Indian companies are outpacing global averages in emissions reporting and reduction, with decarbonisation driving significant financial gains, showcasing immense untapped potential in sustainability and AI-driven innovations.
India is empowering startups and MSMEs to scale up clean energy solutions. With innovation support from the Ministry of New and Renewable Energy, smaller enterprises are being positioned as key drivers of energy transformation through decentralised and efficient technologies.
India added a record 10 GW of solar capacity in Q1 FY24, a nearly 400% year-over-year increase, driven by the commissioning of delayed projects as module prices fell and the ALMM order was suspended, as well as improved grid connectivity to projects previously stalled.
The government is supporting floating solar, canal-top solar, agrivoltaics, and renewable projects in tribal and remote regions. These efforts optimise land use and bring clean energy to under-served areas, driving inclusive and sustainable energy development.
To strengthen grid reliability, the government launched a Rs. 5,400 crore (US$ 616.23 million) Viability Gap Funding scheme for 30 GWh of Battery Energy Storage Systems (BESS). This initiative is expected to attract investments worth Rs. 33,000 crore (US$ 3.77 billion) and support India’s renewable energy integration.
India is set to meet its target of generating half of its total power capacity from non-fossil fuel sources by the end of 2025. As of May 31, 2025, India’s installed capacity stood at 475.59 gigawatts (GW), of which 235.53 GW came from non-fossil sources such as solar, wind, hydro, and nuclear.
The National Green Hydrogen Mission is progressing with a Rs. 19,744 crore outlay. It includes the allocation of 3,000 MW electrolyser capacity and approvals for 8.6 lakh tonnes per annum of green hydrogen production, reinforcing India’s push towards industrial decarbonisation and energy security.
India’s renewable energy sector posted record-breaking growth in the H1 2025, adding 22 gigawatts (GW) of capacity, up 56% YoY, according to data from the Central Electricity Authority. This surge has pushed the country’s total clean energy capacity, including large hydropower and nuclear, above that of fossil fuels for the first time.
Eco Wave Power and Bharat Petroleum signed an MoU at India Energy Week 2025 to develop wave energy in India, estimated at 40,000 MW. The agreement, witnessed by Union Minister for Petroleum and Natural Gas, Mr. Hardeep Singh Puri, aims to integrate wave power into India's renewable energy mix.
Adani Green Energy Ltd. (AGEL) has acquired SB Energy India for US$ 3.5 billion to strengthen its position in the renewable energy sector in India. Reliance Industries has announced an investment of Rs. 75,000 crore (US$ 10.07 billion) in the green energy segment.
Government plans to invest Rs. 9,12,000 crore (US$ 107.89 billion) in power transmission infrastructure by 2032 to boost capacity and support growing electricity demand.
Shirdi is set to become Maharashtra's first solar-powered town, with plans for a solar plant to meet the energy needs of the temple and the entire community, aiming for sustainable power generation and a zero-energy bill for local facilities.
On 23rd February 2024, the Government of India approved amendments to the Electricity (Rights of Consumers) Rules, 2020, aimed at empowering consumers and streamlining processes. Notable changes include faster installation of rooftop solar systems, separate connections for electric vehicle charging, etc.
On February 13, 2024, Prime Minister Mr. Narendra Modi launched PM Surya Ghar Muft Bijli Yojana, offering free rooftop solar electricity to 1 crore households, backed by subsidies and concessional loans.
India has launched the Mission Innovation CleanTech Exchange, a global initiative that will create a whole network of incubators across member countries to accelerate clean energy innovation. Prime Minister Mr. Narendra Modi pledged to boost India's renewable energy generation capacity to 500 GW and satisfy half of India's energy needs through renewable sources by the year 2030 at the Cop-26 Summit in Glasgow.
The Government of India wants to develop a ‘green city’ in every state of the country, powered by renewable energy. The ‘green city’ will mainstream environment-friendly power through solar rooftop systems on all its houses, solar parks on the city’s outskirts, waste-to-energy plants, and electric mobility-enabled public transport systems.
It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. The use of renewables in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually.
India’s renewable energy journey is witnessing unprecedented momentum, with strong policy support, record investments, and rapid capacity expansion across solar, wind, hydro, and green hydrogen. As the nation moves closer to its 2030 target of 500 GW, it is positioning itself as a global clean energy leader. With innovation, strategic collaborations, and large-scale adoption driving the sector, India is set to power its growth sustainably while creating new opportunities for industries, communities, and future generations.
References: Central Electricity Authority, Ministry of New and Renewable Energy, Media Reports, Press Releases
