India’s push for renewable energy is not just about sustainability. It is about economic growth, energy security, and becoming a global leader in clean technology. With energy demand rising and global pressure mounting to cut emissions, India has strong reasons to invest in renewable energy.
As of March 2024, renewable energy, including large hydro, made up about 43% of India’s total installed power capacity. Solar energy alone accounted for 19% of the total capacity. India added nearly 13.5 GW of solar energy capacity in fiscal 2023 and is expected to add 175-180 GW of solar energy between fiscals 2025 and 2030.
This acceleration is driven by a few key reasons. First, solar energy has become affordable. The price of solar modules has dropped by more than 80% from fiscal 2010 to 2024, making solar one of the cheapest sources of power in the country. In fact, tariffs from competitively bid solar projects are lower than those of coal-based power, making solar a financially viable option for states and industries.
Second, government policy has played a crucial role. Initiatives like the Production Linked Incentive (PLI) scheme have allocated over ₹240 billion to boost local manufacturing of high-efficiency solar PV modules. The PM Surya Ghar Muft Bijli Yojana, with a budget of ₹750 billion, aims to provide free electricity through rooftop solar to 10 million homes. These schemes create jobs and support local manufacturing while scaling up clean energy access.
Manufacturing is central to India’s renewable energy strategy. According to Vikram Solar’s DRHP, India is expected to have nearly 125 GW of solar module manufacturing capacity by FY29, while domestic demand may only be 38–42 GW. This surplus opens up export opportunities and strengthens India’s position in the global clean energy supply chain.
Renewables also help India reduce its reliance on fossil fuel imports, which strain the country’s finances and contribute to air pollution. With its growing urban population and increasing per capita electricity needs, India must ensure clean, reliable energy to fuel its economic growth. The CRISIL report notes that India’s energy demand is set to rise steadily till 2030, making investment in renewables critical.
There are challenges—land availability, intermittency of supply, and the need for more grid storage solutions. But solutions are being implemented. Hybrid projects and battery storage technologies are gaining traction, and transmission infrastructure is steadily improving.
In short, renewable energy makes sense for India because it aligns with its growth needs, climate goals, and global ambitions. The transition is well underway, and with continued policy support and private sector innovation, India is on the right path.
(Source: CRISIL & DRHP)
