India is undergoing a transformative shift toward renewable energy, driven by the need to sustainably meet its growing demand for electricity while reducing its dependence on fossil fuels. As one of the fastest-growing economies, the nation has set ambitious targets to ensure energy security, promote environmental health and meet its global climate commitments under the Paris Agreement. This includes a pledge to achieve 500 gigawatts (GW) of renewable capacity by 2030 and reach net-zero carbon emissions by 2070. Solar energy has become a key driver of this transition, supported by initiatives such as the Jawaharlal Nehru National Solar Mission (JNNSM) and policies that encourage investment through tax incentives and subsidies. As on October 10, 2024, India’s renewable energy capacity reached a significant milestone in its journey, with the country's total capacity of renewable energy crossing the 200 GW (gigawatts) mark, accounting for 46.3% of the country's total installed capacity. As part of the total renewable energy capacity, solar energy accounted for 90.76 GW (45.1%), underscoring the nation’s success in scaling up clean energy infrastructure.
Yet, India’s renewable push is not limited to solar; the country is actively investing in other sources such as wind, hydro, biomass and green hydrogen to build a diversified energy portfolio. Each of these energy sources plays a vital role. Wind power is prominent in states such as Tamil Nadu and Gujarat, while large hydropower projects contribute stability to the grid. Innovations in smart grids, energy storage and digital tools are also helping manage the intermittency of renewables. Through its approach, India is establishing itself as a leader in sustainable energy, committed to a future that balances economic growth with environmental responsibility.
India’s solar power boom
India’s solar energy journey took a significant leap with the introduction of JNNSM in 2010. This initiative set ambitious targets for expanding solar energy, initially aiming for 20 GW by 2022. Driven by the sector’s potential and the country’s renewable energy goals, this target was soon revised upwards. Solar energy quickly emerged as a key component of India’s green energy strategy, supported by a strong policy framework and investment-friendly environment. Today, solar power contributes approximately 90 GW, or nearly 45% of India’s total renewable capacity, reflecting the country’s substantial strides in green energy.
Between 2014 and 2023, solar energy capacity in India expanded dramatically, fuelled by the decreasing costs of Photovoltaic (PV) technology, an investment-friendly climate, and India’s vast solar potential with about 300 sunny days annually. States such as Rajasthan, Gujarat and Madhya Pradesh have become solar power hubs, hosting some of the largest solar projects globally. For example, the Bhadla Solar Park in Rajasthan, with a capacity of 2.2 GW, is the third largest solar park worldwide, highlighting India’s commitment to scaling its renewable infrastructure. India’s long-term goal is to achieve 280 GW of solar capacity by 2030, making solar the main contributor to its renewable energy portfolio.
India’s renewable energy targets are ambitious, with a strategic approach to harness its abundant solar resources. By 2030, India aims to reach 280 GW of solar power, which will form a significant portion of the country’s overall target of 500 GW of renewable energy. Moreover, these milestones go beyond numbers. They represent India’s efforts to decrease reliance on imported fuels, secure its energy future and support global climate initiatives.
Source: National Power Portal, *- As of September 2024
To meet these targets, India has adopted several large-scale projects, such as mega solar parks, and is also promoting smaller, decentralised solutions such as rooftop solar systems. Large solar parks, each with a capacity exceeding 1 GW, benefit from economies of scale, helping drive down costs and expand access. The government has introduced incentives such as accelerated depreciation, viability gap funding and accessible financing options to attract private and international investment. By fostering a strong foundation for solar manufacturing, installation and maintenance, these policies support India’s broader vision of a self-sustaining green energy ecosystem.
India’s policy framework has played a central role in its solar power growth. Key government initiatives provide financial incentives and regulatory support, making solar projects economically viable and encouraging investors to participate in the market. Programmes such as the Solar Park Scheme, which offers financial aid to states for large-scale solar park development have been instrumental.
The Solar Energy Corporation of India (SECI) has facilitated growth by organising solar power auctions, leading to competitive tariff rates that make solar power one of India’s most cost-effective energy sources. In some auctions, solar tariffs have fallen below Rs. 2.50 (US$ 0.030) per kWh, often cheaper than conventional coal-fired power. India’s involvement in the International Solar Alliance (ISA) has also strengthened the country’s international partnerships, bringing foreign investment and shared expertise to its solar industry.
To support the middle-class population, Prime Minister Mr. Narendra Modi introduced the PM Suryodaya Yojana 2024 in January, which was later rebranded as PM Surya Ghar: Muft Bijli Yojana and officially launched on February 13, 2024, with an allocated budget of Rs. 75,021 crore (approximately US$ 9 billion). This extensive initiative aims to install solar panels on one crore homes, enabling households to generate their own electricity through solar energy. The programme is expected to reduce electricity costs for middle and lower-income families, making them more self-sufficient in meeting their energy needs. With rooftop solar panels, households can receive up to 300 units of free electricity each month, while also earning between Rs. 17,000 and Rs. 18,000 (approximately US$ 204-216) annually by selling any surplus electricity generated.
The technological advancements in India’s solar sector are notable, especially regarding PV technology. Modern solar installations in India often use monocrystalline and polycrystalline PV modules, with monocrystalline cells offering higher efficiency levels. India is also exploring bifacial solar modules, which generate electricity from both sides of the panel, thereby increasing overall power generation. Additionally, decentralised solar solutions, such as rooftop systems and solar-powered agricultural pumps, are helping meet the energy demands in rural and underserved regions.
India is also exploring floating solar technology, which enables solar installations on water surfaces, saving land resources and reducing evaporation rates. The 100-MW floating solar project in Ramagundam, Telangana, is one of the largest of its kind in the country, and it reflects the potential for similar innovations nationwide. These technological developments showcase India’s adaptability and determination to enhance its solar infrastructure, establishing a solid foundation for a sustainable energy future.
Alternatives to solar energy in India’s renewable energy landscape
India’s renewable energy transformation goes well beyond solar, embracing a broad mix that includes wind, hydro, biomass and emerging sources such as green hydrogen. This diversified approach not only strengthens energy security but also builds resilience by ensuring a balanced grid that can adapt to regional resources and fluctuating demand patterns. With solar as a foundation, these additional energy sources play a pivotal role in creating a robust, sustainable energy ecosystem.
India’s wind power journey began in the 1990s and has since expanded, particularly in states with high wind potential such as Tamil Nadu, Gujarat and Maharashtra. As on October 10, 2024, wind energy contributed around 47.3 GW (23.5%) to India’s installed renewable energy capacity, making it the second-largest renewable source after solar. India currently ranks fourth in the world in terms of wind power capacity. Government initiatives such as the National Wind-Solar Hybrid Policy promote projects where wind and solar plants operate in tandem, optimising land use and ensuring a more consistent energy supply.
Source: News articles, *- as of October 10, 2024, F-forecast
In 2014, India’s wind power capacity was 21.0 GW. By 2024, this capacity has significantly increased and more than doubled, to 47.3 GW, representing a major development in renewable energy infrastructure. The forecast for 2030 indicates a substantial rise to 100.0 GW, highlighting the country’s ambitious goals for expanding renewable energy sources. This growth aligns with India’s commitment to sustainable energy, driven by government policies and a focus on hybrid energy solutions that integrate both wind and solar power for enhanced efficiency and land optimisation.
India’s National Wind-Solar Hybrid Policy has also been supporting upcoming innovative technologies in the wind power space in the form of bladeless turbines. Traditional wind turbines, while iconic in the renewable energy landscape, present significant challenges. Their rotating blades pose risks to wildlife. Moreover, their large size and noise levels make them unsuitable for urban areas. The maintenance cost is also high as it accumulates over their 20-25 year lifespan. These drawbacks have sparked growing interest in bladeless wind turbines, which generate electricity using vortex-induced vibrations. Quieter, smaller, and safer for wildlife, bladeless turbines are particularly well-suited for urban and residential environments. Also, the installation of bladeless turbines helps to mitigate the challenge of land acquisition to setup traditional wind turbines.
Additionally, the government is exploring offshore wind, particularly along the coasts of Gujarat and Tamil Nadu, which experience strong and stable wind patterns. By 2030, India aims to reach 30 GW of offshore wind capacity, supported by both public investment and international partnerships.
Hydropower has a longstanding role in India’s energy landscape, contributing close to 47 GW and accounting for about 12% of India’s total power capacity as on October 10, 2024. Known for its reliability, hydropower helps stabilise the grid and offers a dependable energy source, particularly during periods when solar and wind resources fluctuate. The rivers in the north and northeastern regions of India are especially well-suited for hydropower projects, providing both large-scale and smaller run-of-the-river installations.
Source: News articles, *- as of October 10, 2024, F-forecast
In 2014, the installed hydropower capacity was 40.5 GW. In 2024, it has slightly increased, to 46.9 GW, reflecting a steady but gradual expansion in hydropower infrastructure. The forecast for 2030 shows a notable rise to 70.0 GW, underscoring India’s commitment to enhancing its renewable energy mix through hydropower.
To enhance grid flexibility, India is also exploring pumped storage hydro projects. These facilities work by pumping water to a reservoir when demand is low, then releasing it through turbines during peak times. Pumped storage is particularly valuable as it pairs well with the variable nature of solar and wind, helping to balance supply and demand and ensuring a resilient grid.
India’s vast agricultural sector and growing cities produce large volumes of organic waste, providing a natural feedstock for biomass and waste-to-energy projects. Biomass energy, which uses materials such as crop residues and forestry by-products, is especially relevant in rural areas. As on October 10, 2024, India had installed biomass capacity of 10.7 GW. These projects provide electricity to rural communities, enhancing local energy security and reducing dependence on traditional, polluting fuels.
In urban centres, waste-to-energy plants offer a dual solution by generating power from municipal waste and reducing landfill dependency. These plants process solid waste to produce electricity, addressing urban waste management challenges and contributing to renewable energy output. As on October 10, 2024, India’s waste-to-energy capacity stood at 604.49 MW. Although biomass and waste-to-energy contribute a smaller share of India’s total capacity, they serve crucial roles in both rural and urban energy access.
Green hydrogen, produced through electrolysis powered by renewable electricity, is gaining traction as a promising clean fuel. With applications across hard-to-decarbonise industries such as steel, cement and chemicals, green hydrogen offers a sustainable pathway for sectors that cannot easily transition to renewable electricity alone.
The Ministry of New and Renewable Energy unveiled the National Green Hydrogen Mission, approved by the Union Cabinet on January 4, 2023, with a financial outlay of US$ 2.4 billion (Rs. 19,744 crore). The mission's objective is to position India as a frontrunner in the production, adoption and export of Green Hydrogen and its by-products on a global scale.
A significant portion of the mission’s budget, totalling US$ 2.1 billion (Rs. 17,490 crore), is allocated to the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. This initiative is designed to advance domestic electrolyser manufacturing and green hydrogen production, aiming to lower costs and expand capacity. The SIGHT programme will function under Mode 2B, a framework from the Ministry of New and Renewable Energy (MNRE) that consolidates demand and employs competitive bidding to secure cost-efficient green hydrogen and its derivatives. The initial round of Mode 2B targets a bidding capacity of 200,000 million tonnes per year.
The mission’s budget also includes US$ 2.1 billion (Rs. 17,490 crore) for the SIGHT programme, US$ 175.9 million (Rs. 1,466 crore) for pilot initiatives, US$ 48 million (Rs. 400 crore) for Research and Development (R&D) and US$ 46.6 million (Rs. 388 crore) for other components. India’s strategy under this mission focuses on positioning itself as a key global exporter of green hydrogen, aiming to capture a portion of the estimated global demand of 200 million tonnes by 2030. This approach involves establishing hydrogen production hubs powered by renewable sources for hydrogen production, storage and distribution. These hubs, developed through public-private partnerships, are an essential step in reducing industrial emissions. By driving green hydrogen initiatives, India is laying the groundwork for a cleaner industrial sector and strengthening its position in the global hydrogen market.
Conclusion
India’s renewable energy sector is poised for remarkable growth with the help technological and policy advancements. The strategic emphasis on energy storage solutions, such as lithium-ion and solid-state batteries, combined with innovative projects such as microgrids and floating solar plants, is enhancing the integration of renewables into the grid. The adoption of digital tools and AI is optimising energy management and forecasting, enabling a more responsive and efficient energy system. While challenges such as intermittency, land acquisition and import reliance exist, they present significant opportunities for innovation and investment in local manufacturing and decentralised solutions. The National Green Hydrogen Mission and the PLI scheme are some of the government initiatives that are leading the way for a self-reliant renewable energy industry that can meet domestic needs and reduce carbon emissions. As India aims for a target of 500 GW of non-fossil fuel capacity by 2030, these developments not only contribute to energy security and economic growth but also position India at the forefront in the transition to a sustainable energy future. With continued commitment and innovation, India can effectively navigate its challenges, ultimately fostering a resilient, green economy.