India is rapidly expanding its renewable energy sector as it works to balance rising energy demand with climate commitments. By August 2025, coal remained the largest source of electricity, contributing 43.75 percent of the country’s total installed power capacity. At the same time, renewable energy, led by solar and wind, is becoming an increasingly important part of India’s power mix and is growing at a remarkable pace.

In the first eight months of 2025, India added 25,265.41 MW of new solar capacity, reflecting the strong momentum in this segment. This growth has been supported by government measures such as the Approved List of Models and Manufacturers, which ensures that quality standards are maintained for solar modules and boosts local manufacturing. Under this framework, India achieved 123 GW of solar PV module manufacturing capacity by August 2025, a milestone that underlines the country’s effort to strengthen domestic production and cut down reliance on imports.

By the end of August 2025, renewable energy sources accounted for 38.85 percent of India’s total installed power capacity. Solar has been the largest contributor to this growth. The country’s installed solar capacity stood at 123.130 GW, representing 63.96 percent of the total renewable capacity. Solar now contributes 24.85 percent to the overall power mix, marking an annual increase of 44.06 percent compared to the previous year. This clearly shows how fast solar projects are being deployed across India.

India’s total installed power capacity reached 495 GW by August 2025, recording an annual growth of 9.94 percent. Despite the strong rise of renewables, coal-based power still provides nearly half of India’s electricity, highlighting the challenges of shifting fully toward clean energy. As more renewable capacity, which is variable in nature, is added to the system, issues such as grid stability and reliable supply remain critical for the power sector.

The growth of renewable energy is also delivering socio-economic benefits. Solar and wind projects are creating employment opportunities, particularly in rural and semi-urban regions. These projects are helping local economies, improving electricity access, and driving development in remote areas, which is enhancing the overall quality of life for many communities.

Another important aspect is the strengthening of India’s energy security. By increasing renewable energy use, the country is reducing its dependence on imported fossil fuels, thereby limiting the impact of sudden swings in global fuel prices. At the same time, advances in energy storage and grid technology are making renewable power more reliable and easier to manage.

Global market changes are also creating opportunities for Indian solar manufacturers. The overall picture shows that while India faces challenges in fully moving away from coal, the steady expansion of renewables, especially solar, reflects the country’s commitment to building a cleaner, self-reliant, and secure energy system that also supports economic growth.

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