By: Rahul Das, AVP – Business Development, Oorjan Cleantech
India’s renewable energy journey reached a historic milestone in 2025, with the nation adding an unprecedented 44.5 gigawatts (GW) of renewable energy (RE) capacity over the year. This record expansion, the largest ever annual green power capacity addition in the country’s history, underscores India’s accelerating transition toward a low-carbon, climate-resilient energy future.
A Record Year for Renewable Growth
According to government data, India’s renewable energy capacity surged dramatically in 2025. The bulk of this new capacity came from solar energy, which contributed roughly 35 GW to the grid, a marked increase compared to previous years, while wind energy contributed about 6 GW. Combined with output from bioenergy, small hydro, and other clean energy sources, the total renewable capacity pushed India’s installed renewable generation capacity, excluding large hydro, to over 254 GW by the end of 2025.
As a result of this growth, non-fossil fuel sources now account for more than 51 per cent of India’s total installed electricity capacity of around 509.6 GW, achieving the target of 50 per cent non-fossil power ahead of schedule.
Solar Power Leads the Charge
Solar energy remains the cornerstone of India’s renewable strategy. By late 2025, India’s solar capacity surpassed 132 GW, up from about 97.9 GW in 2024, driven by large utility parks, rooftop installations, and hybrid projects. Ground-mounted solar accounted for the majority of additions, with rooftop solar playing a growing role in distributed clean power generation.
India already ranks among the top three countries globally in solar capacity and among the top four in both wind and total renewable energy capacity, reflecting its rapid adoption of clean technologies on a massive scale.
Wind, Bioenergy, and Beyond
While solar has captured much of the spotlight, wind power also showed signs of resurgence in 2025, adding the highest wind capacity in recent years. Other segments,s such as bioenergy and small hydropower, will continue to contribute to diversifying India’s renewable mix and bolstering energy security.
Complementing generation capacity, India is also accelerating investments in energy storage systems. Grid-scale battery storage — critical for managing variable renewable output — is projected to grow by nearly tenfold in 2026, improving grid flexibility and reliability as RE penetration increases.
Investment and Policy Momentum
The clean energy surge in 2025 was backed by significant investment. Sector estimates indicate that nearly ₹2 lakh crore (US$24 billion) was funnelled into renewable projects, highlighting strong capital interest and confidence in India’s energy transition.
On Track for 2030 Clean Energy Goals
India has set an ambitious target of achieving 500 GW of non-fossil fuel electricity capacity by 2030, a central plank of its climate commitments and energy strategy. Achieving this requires an average annual addition of approximately 45–50 GW of clean energy capacity in the run-up to 2030. The landmark 44.5 GW addition in 2025 places India firmly on this trajectory, although sustained momentum will be essential. According to analysts, India will need to maintain annual RE additions at or above this level, even amid challenges such as land acquisition, supply chain pressures, and transmission bottlenecks to meet its 2030 goals.
Climate Impact and Economic Opportunity
Beyond capacity numbers, India’s renewable push delivers tangible environmental benefits. Increased clean energy generation reduces dependence on fossil fuels, curbs carbon emissions, and enhances energy security. A greener energy mix also aligns with India’s commitments under the Paris Agreement and its Net Zero by 2070 pledge.
Economically, the renewable energy sector is poised to generate employment, foster domestic manufacturing (especially in solar modules and wind components), and attract global capital flows. The transformation of the energy sector is thus not just a climate imperative but also a driver of sustainable economic growth.
In summary, India’s 44.5 GW renewable energy addition in 2025 represents a significant clean energy milestone, one that brings the nation closer to its 2030 targets while cementing its role as a global leader in the transition to sustainable energy. Continued policy support, technological innovations, and financial backing will be key to sustaining this momentum toward a decarbonised future.