India is steadily expanding its renewable energy sector while trying to balance its growing energy demands and climate commitments. As of June 2025, coal remains the dominant source of electricity, contributing 44.28% to the country’s total installed power capacity. However, the share of renewable energy, particularly solar and wind, is rising quickly and becoming a key part of the national energy mix.

In just the first half of 2025, India added 18,383.11 megawatts (MW) of new solar capacity. This growth is being supported by government initiatives such as the Approved List of Models and Manufacturers (ALMM), which ensures the quality of solar modules and encourages local manufacturing. These efforts are helping the country move towards a cleaner and more self-reliant energy system.

By the end of June 2025, renewable energy sources accounted for 38.8% of the total installed power capacity in India. Solar energy played a leading role in this development. The total installed solar photovoltaic (PV) capacity reached 116.247 gigawatts (GW), representing 62.97% of the total renewable energy capacity. Solar power now contributes 23.98% to India’s entire power mix. This marks a 36% increase in solar capacity compared to the previous year, reflecting the speed at which solar energy is being adopted across the country.

Overall, India’s total installed power capacity touched 484 GW in June 2025, showing an annual growth rate of 8.66%. Despite the fast growth in renewable energy, coal-based thermal power continues to supply nearly half of the country’s electricity. This shows the ongoing challenges in transitioning completely to clean energy sources. Ensuring a stable power supply and grid reliability remains a key concern as more variable renewable energy is added to the grid.

Apart from environmental benefits, the rise of renewable energy is also bringing socio-economic gains. Solar and wind energy projects are creating new jobs, especially in rural and semi-urban regions. These projects are supporting local economies, improving electricity access, and driving development in remote areas. This is enhancing the quality of life for many communities.

Renewable energy is also helping to strengthen India’s energy security. With more power being generated from solar and wind sources, the country is reducing its dependence on imported fossil fuels. This also protects the economy from sudden fluctuations in global energy prices. At the same time, advancements in energy storage and grid technologies are making renewable power more reliable and easier to manage.

Global developments are also opening new doors for Indian solar manufacturers. For example, the United States has imposed revised tariffs on solar imports from countries like China. This shift could benefit Indian manufacturers by increasing export opportunities, as long as they maintain high standards and competitive pricing.