India has made significant progress in the field of renewable energy, with solar energy emerging as a major contributor. As of the end of August 2025, India had installed 123,130.13 MW of solar photovoltaic capacity, accounting for over 63.96% of its total renewable energy capacity (excluding large hydropower projects). This growth has been driven by declining solar panel prices, technological advancements, strong policy measures, and increasing awareness of clean energy.
From January to August 2025, India added 25,265.41 MW of new solar capacity. In August alone, installed capacity reached 4,113.59 MW, a 3.46% increase compared to July. Wind energy also continued to expand, with 541.1 MW of new capacity added during the same month. These figures highlight India’s determination to scale up clean energy and reduce its reliance on fossil fuels.
Government policies have played a key role in this transition. The Production-Linked Incentive (PLI) scheme has encouraged domestic solar manufacturing, while the Approved Models and Manufacturers List (ALMM) policy has ensured higher quality standards. Reintroduced on April 1, 2024, the ALMM policy requires government projects to use only certified solar modules. Starting June 1, 2026, the same requirement will apply to solar photovoltaic cells, ensuring improved reliability and efficiency across projects.
As of August 2025, India’s renewable energy capacity (excluding large hydropower) reached 192.517 GW. Solar and wind energy together accounted for nearly 175.81 GW, representing over 91.32% of the total renewable capacity. Ground-mounted solar remains the largest component, with an installed capacity of 93.9 GW, while rooftop solar has grown to 20.85 GW, gaining popularity among households, businesses, and industries. Rooftop systems are widely adopted to reduce electricity bills and enhance energy independence. Additionally, solar-wind hybrid projects have reached 3.26 GW, improving land use and transmission efficiency.
Off-grid solar systems are also making an impact, particularly in rural areas, where they replace diesel generators and provide reliable access to energy. These systems include solar lights, solar-powered agricultural water pumps, and local mini-grids. Their total capacity has exceeded 5.12 GW, reducing costs for rural users and lowering pollution.
However, challenges remain. Acquiring suitable land for large solar parks is becoming increasingly difficult, while integrating higher volumes of solar power into the grid requires improved transmission infrastructure and modern balancing technologies. Without these, fluctuations in power supply could pose risks to grid stability.
Global developments are also influencing India’s solar growth trajectory. Recent U.S. tariff hikes on solar module imports have led many suppliers to turn to India, increasing component availability and reducing costs. This shift has supported faster capacity expansion, providing additional momentum for India to achieve its renewable energy targets.
With rapid installation rates, supportive policies, and increasing investments, India is solidifying its position as one of the world’s leading renewable energy markets. The strong momentum in solar and wind energy indicates that, despite ongoing challenges related to land acquisition and grid integration, India is steadily advancing toward its clean energy goals.
