India’s renewable energy sector has achieved an extraordinary surge, recording a dramatic 420% year-on-year increase in capacity additions in June 2025, expanding from 1.4 GW to 7.3 GW. This monumental growth underscores the nation’s rapid and decisive transition towards a cleaner, more sustainable power mix, aligning perfectly with the ambitious national agenda for zero-net-carbon emissions and fostering eco-friendly, resilient urban and rural development across the subcontinent.
The phenomenal expansion is predominantly led by solar energy, which has seen its installed capacity climb an unprecedented 4,000%, from 2.82 GW to 117 GW by 2025. This exponential growth is complemented by a striking 80% reduction in solar tariffs, plummeting from ₹10.95 per unit in 2010–11 to ₹2.15 per unit today. The economic viability of clean energy has reached a tipping point, with solar-plus-battery systems now proving more cost-effective than traditional thermal energy, making renewable power a compelling and economical choice for both industries and consumers nationwide.
Wind energy has also contributed significantly to this green revolution, posting robust gains with its installed capacity rising by 140%, from 21 GW to 51.7 GW. This momentum firmly establishes India as one of the fastest-growing wind energy markets globally, leveraging its vast coastline and land resources for clean power generation. The combined growth of solar and wind power is fundamentally reshaping India’s energy grid, reducing its reliance on fossil fuels and mitigating the environmental impact of energy production.
The accelerating investment momentum in the renewable sector further highlights its strategic importance. Clean energy attracted a dominant 83% of all power sector funding in 2024, reflecting a strong investor confidence in India’s green transition. The nation secured a substantial $2.4 billion in global energy development finance within a single year, with foreign direct investment (FDI) in renewables topping ₹1.6 lakh crore since 2020, including a remarkable ₹42,000 crore in 2023 alone. The first quarter of 2025 saw clean energy investment surge 7.7 times year-on-year, reaching $9.8 billion, signalling a robust and sustained financial commitment to the sector.
Beyond large-scale installations, India is also embracing innovative approaches to sustainable energy and waste management. The commissioning of India’s largest waste-to-energy plant in Ahmedabad, capable of processing 1,000 tonnes of solid waste daily into electricity, exemplifies a forward-thinking strategy to address urban waste challenges while simultaneously generating clean power. Such initiatives are crucial for building circular economies within cities, transforming waste into valuable resources and contributing to overall urban sustainability and public health.
These transformative developments underscore how India’s clean energy transition is not merely an environmental imperative but also an economically viable and socially inclusive pathway. By fostering energy independence, creating new employment opportunities, and benefiting cities, farmers, and communities through decentralised power generation and improved environmental quality, India is charting a course towards a resilient, prosperous, and equitable future. The surge in green energy installations is a testament to the nation’s resolve to meet its climate goals and provide sustainable energy access for all.
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