From 3 GW to 162 GW: The rise of India’s solar power sector
- IBEF
- August 4, 2026
India has emerged as one of the world's fastest-growing solar energy markets, expanding its installed solar power capacity from around 3 GW in 2014 to 162.15 GW as of June 30, 2026, making solar the largest contributor to the country's renewable energy capacity. The latest milestone follows the Union Cabinet's approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), which aims to develop 5,000 MW of floating solar photovoltaic capacity with co-located Energy Storage Systems (ESS). The scheme, with an outlay of Rs. 5,070 crore (US$ 531.90 million) will be implemented from FY27 to FY31 and includes a minimum storage capacity of 10,000 MWh to strengthen grid stability and manage peak electricity demand. According to the National Institute of Solar Energy (NISE), India has an estimated 102.18 GW floating solar potential, and the initiative is expected to reduce nearly 10 million tonnes of carbon dioxide emissions annually, generate 16,000-17,000 full-time equivalent jobs and increase the country's floating solar capacity to nearly 5,700 MW.
India's solar expansion has been driven by sustained policy support, infrastructure development and domestic manufacturing. The country added 37 GW of solar capacity during calendar year 2025 and a record 44.61 GW during FY26, while total non-fossil fuel capacity reached 283.46 GW, including 274.68 GW from renewable energy sources. Domestic solar module manufacturing capacity has expanded from 2.3 GW in 2014 to around 172 GW as of March 31, 2026, supported by the Production Linked Incentive (PLI) Scheme and the Approved List of Models and Manufacturers (ALMM). Under the PM Surya Ghar: Muft Bijli Yojana, over 43 lakh households had adopted rooftop solar systems by June 2026, while Central financial assistance of Rs. 14,771.82 crore (US$ 1.55 billion) had been disbursed till December 2025. Through the PM-KUSUM scheme, more than 21.77 lakh farmers have benefited from solar-powered irrigation initiatives. With 54 solar parks sanctioned across the country, international initiatives such as the International Solar Alliance (ISA) and One Sun One World One Grid (OSOWOG), India continues to strengthen its position as a global leader in renewable energy and clean energy transition.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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