India’s Renewable Energy Surge: Check 2025 Outlook and Government Steps

India’s renewable energy sector is rapidly transforming, and 2024 marked an exceptional year in this transition. With a growing commitment to sustainability and green energy solutions, India continues to make waves in the global energy landscape. By 2030, the country aims to achieve 500 GW of non-fossil fuel-based energy capacity—a monumental goal that solidifies its position as a clean energy leader.

2024: A Year of Record Growth in Renewable Energy

India witnessed remarkable achievements in solar and wind energy installations in 2024. The country added a record 24.5 GW of solar capacity and 3.4 GW of wind capacity, marking a more than twofold increase in solar installations and a 21% rise in wind capacity compared to the previous year. These numbers showcase a strong push towards clean energy adoption, backed by government incentives, reforms, and growing investments in renewable energy infrastructure.

Solar Energy: Dominating the Growth Curve

Solar energy was the star performer in India’s renewable energy sector. By the end of 2024, solar power contributed 47% of the total installed renewable energy capacity. A significant chunk of this growth came from utility-scale solar projects, with 18.5 GW of capacity installed—nearly a 2.8x increase from 2023.

The rooftop solar market also saw impressive growth, with 4.59 GW of new capacity added, reflecting a 53% increase over the previous year. Key to this growth was the launch of the PM Surya Ghar: Muft Bijli Yojana in 2024, which enabled 7 lakh rooftop solar installations in just 10 months.

Wind Energy: A Steady Contributor

In wind energy, India added 3.4 GW of new capacity in 2024. Gujarat, Karnataka, and Tamil Nadu emerged as the top contributors, accounting for 98% of the new wind capacity installations. As these states continue to lead in wind power generation, the wind energy sector remains a key component of India’s renewable energy landscape.

Government Steps Driving Renewable Energy Growth

India’s renewable energy growth can largely be attributed to the proactive policies and financial support extended by the government. A few key developments in 2024 have significantly shaped the country’s energy transition:

1. Green Hydrogen Push: The Indian government has been actively promoting green hydrogen as a critical part of its energy strategy. Policies focused on reducing the costs of green hydrogen production and attracting investments are creating a solid foundation for the sector’s growth.
2. Manufacturing Expansion: India has placed a strong emphasis on expanding its domestic manufacturing capacity for solar panels and wind turbines. This move not only supports the country’s clean energy goals but also positions India as a potential global hub for renewable energy manufacturing, reducing its reliance on imports and fostering local job creation.
3. Grid Infrastructure Development: To manage the increasing renewable energy capacity, significant investments are being directed toward upgrading the country’s grid infrastructure. The Ministry of New & Renewable Energy (MNRE) has proposed substantial investments in inter-state transmission systems to evacuate power from renewable-rich states like Rajasthan, Gujarat, and Madhya Pradesh.

Renewable Energy Outlook for 2025

Looking ahead to 2025, India’s renewable energy sector is poised for continued growth. The country has laid a solid foundation with the achievements of 2024, but there are still several challenges to address. Key areas of focus for 2025 will include:

• Tackling Regulatory and Financial Hurdles: While India’s RE sector has made impressive strides, addressing regulatory bottlenecks and enhancing financial models for large-scale projects will remain critical. More clarity on policy frameworks and increased support for project financing can further boost investor confidence.
• Innovation and Emerging Technologies: India’s energy transition will benefit from embracing emerging technologies such as offshore wind, energy storage solutions, and green hydrogen. Continued investment in research and development will be key to staying ahead in the global clean energy race.
• Energy Access and Rural Development: With a continued emphasis on rooftop solar and off-grid systems, India’s rural areas will experience enhanced energy access, empowering communities and improving livelihoods.

Conclusion

India’s renewable energy story is one of remarkable growth and progress. By 2025, India aims to have a more robust renewable energy sector, with continued growth in both solar and wind installations. The country is on track to meet its ambitious renewable energy targets, with 217.62 GW of non-fossil fuel-based energy capacity already in place as of January 2025. With continued momentum, 2025 could be another milestone year for India’s renewable energy transformation.

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