How India’s Renewable Energy Sector is Leading the Solar Revolution

December 16, 2025. By News Bureau

Tags:

articles

Vinay Thadani

GREW Solar

National Solar Mission

Energy today sits at the centre of India’s growth story, shaping how the country plans its future and builds its infrastructure. What began as a slow shift toward cleaner power has evolved into one of the world’s most determined renewable transitions. From industrial corridors to remote villages, solar energy has moved from being an alternative to becoming a key driver of India’s next phase of development. And as global markets rethink their energy systems, India is emerging not just as a participant but as a country helping shape the direction of this change.

The evolution of solar energy in India has been anything but linear. What began as a modest government-led effort to widen access to clean power has now become one of the world’s most ambitious renewable energy missions. Over the last decade, India has steadily moved from being a passive consumer of solar technologies to an active driver of global progress in clean energy.

Today, India ranks among the top four countries worldwide in terms of solar power capacity. Behind this rise lies a combination of policy clarity, manufacturing incentives, falling technology costs, and the growing realisation that energy security and climate goals must move hand in hand.

A Decade of Steady Growth

India’s solar capacity has expanded cumulatively to 132.25 GW by 2025. This was enabled by clear national targets and timely policy measures under the National Solar Mission. The government’s goal of reaching 500 GW of renewable energy capacity by 2030, with solar as a major contributor, has set the tone for industry expansion.

One of the most impactful measures has been the Production Linked Incentive (PLI) scheme for high-efficiency solar modules. With an allocation of INR 24,000 crore, the scheme is encouraging domestic manufacturing at scale and reducing dependence on imported modules.The combined capacity approved under PLI tranches has brought in investments exceeding INR 90,000 crore and is expected to generate more than one lakh jobs. This manufacturing push is gradually building India’s end-to-end solar ecosystem, from polysilicon to finished modules.

Solar Adoption at the Ground Level

Beyond large solar parks and national programmes, the shift is also visible in how communities are using solar in practical, everyday ways. Housing societies are installing rooftop systems to manage common-area power needs. Small shops in semi-urban towns are running lights and fans on compact solar units, reducing their monthly bills. In village clusters, solar-powered water filtration units and mini-grids are helping bridge long-standing gaps in basic services. Even public transport systems are experimenting with solar-based charging setups for electric vehicles. These changes may appear modest on their own, but together they show how solar power is moving from being a sector-led initiative to becoming a part of daily living across India.

Building Solar Capacity at Scale

Alongside manufacturing, India has developed large-scale solar parks that serve as hubs for power producers and investors. Under the Solar Park Scheme, more than 50 parks are planned with a cumulative capacity of nearly 38 GW. Several of these parks are fully or partially operational, together adding over 10 GW to the grid. These parks help with aggregating land, easing infrastructure challenges, and lowering overall project costs.

Complementing these utility-scale efforts is the growing adoption of decentralised solar. The PM-KUSUM scheme has given a push to solar-based agriculture pumps and small rural solar plants. Rooftop solar in the residential segment is expanding too, supported by subsidy programmes. Together, these initiatives are taking solar power closer to households, farms, and small businesses.

Global Alliances Strengthening India’s Position

India has also played an international leadership role. The International Solar Alliance (ISA), co-founded by India and France, has emerged as a collaborative platform for enabling solar adoption across developing countries. With a vision of mobilising around $1 trillion in investment by 2030, ISA is helping create training, financing, and knowledge frameworks that extend beyond national borders. India’s active engagement has positioned it as a global voice for equitable clean energy transitions.

Technology at the Centre of the Revolution

While policy has created the foundation, the next phase of growth is being shaped by innovation. Technologies such as bifacial modules, floating solar systems, and better storage solutions are gaining traction across projects. Research into tandem solar cells, organic semiconductors, and other advanced materials aims to achieve higher efficiency at lower costs. These developments are setting the stage for more reliable and affordable power generation.

India is also exploring long-term frontiers such as green hydrogen, smart grids, and digital monitoring systems that can seamlessly integrate renewable energy into the national network. As solar generation increases, these innovations will be crucial in ensuring consistent supply and grid stability.

A Sector Poised for Investment and Job Creation

India’s clean energy ambitions are backed by strong investor interest. According to industry estimates, the country will need annual investments of $350–400 billion to meet its 500 GW capacity of renewable energy by 2030 targets. This growth is expected to create up to 6 million clean energy jobs by the end of the decade, rising to 10 million by 2047.

The Union Budget’s increased allocation for solar initiatives and the consistent inflow of foreign direct investment further signal confidence in India’s long-term renewable roadmap.

Looking Ahead

India’s solar journey reflects both scale and intention. What was once a sector driven by subsidies has now become an integral pillar of national energy planning. As the country progresses toward its targets, reducing carbon intensity, increasing renewable penetration, and achieving net-zero by 2070, the solar industry will remain at the heart of this transition.

The road ahead is expansive, but the foundation is strong. With continued innovation, robust policies, and steady investment, India is poised not just to participate in the global solar revolution but to help lead it.

- Vinay Thadani, Executive Director & CEO, GREW Solar