The Revolution of Renewable Energy in India, 2025

Introduction

With a record 29 GW of renewable energy added in 2024 alone, India has become a global pioneer in sustainable energy. India’s energy transformation, driven by audacious reforms and creative leadership, is propelling global sustainability efforts with 232 GW of installed capacity and 176 GW under construction.

What Is India’s Present Renewable Energy Development Status?

• India is establishing itself as a worldwide leader in renewable energy production by making quick progress. With the notable addition of 29.52 GW in FY 2024–2025 alone, India’s installed renewable energy capacity (not including big hydro) reached 220.10 GW as of March 31, 2025.
• With more than 105 GW (105.65 GW as of March 31, 2025), solar energy is the main driver, placing India third in the world in terms of solar capacity.
• Additionally, wind energy has surpassed the 50 GW threshold (50.04 GW as of March 31, 2025), placing India fourth in the world for wind capacity.
• By 2030, the nation hopes to have 500 GW of non-fossil fuel-based capacity, with a sizable pipeline of 169.40 GW already in operation and 65.06 GW under consideration.
• Strong government assistance, such as PM Surya Ghar: Muft Bijli Yojana, and a large increase in domestic solar module manufacturing capacity are the main drivers of this rise. 
• Grid integration, storage, and land acquisition still present difficulties, but India is firmly committed to the move to renewable energy.

What Changes Were Made to India’s Renewable Energy Development?

• Market-Driven Bidding: Transparent bidding was used in India in place of feed-in tariffs, which caused solar rates to drop dramatically from Rs 10.95 per unit in 2010 to Rs 1.99 per unit in 2021.
• Waiver of ISTS Charges: Geographical restrictions have been eliminated by the waiver of interstate transmission system (ISTS) fees, allowing the movement of renewable energy across the country.
• Flagship Programs and Initiatives: 
  • India’s ability to produce solar modules nearly quadrupled from 38 GW in March 2024 to 74 GW in March 2025 as a result of the PLI Scheme for Solar Manufacturing.
  • With more than 10 lakh homes having onboarded, PM Surya Ghar’s Muft Bijli Yojana aims to distribute 30 GW of decentralized capacity across 1 crore families.
  • Through the PM Kusum Yojana, farmers may get up to 60% in subsidies for solar pumps, guaranteeing electricity during the day and additional revenue.
  • Supported by investments in Green Energy Corridors and a strong 2030 transmission strategy to enable effective grid integration, the National Green Hydrogen Mission (NGHM) seeks to create 5 MMT of green hydrogen annually by 2030.
  • The percentage of ethanol blended into gasoline increased from 1.5% in 2013 to 15% in 2024 under the Ethanol Blended Petrol (EBP) Program.
  • This resulted in foreign exchange savings of Rs 1.26 lakh crore.
  • More than 100 compressed biogas (CBG) facilities have been put into service as part of the Sustainable Alternative Towards Affordable Transportation (SATAT) strategy, which plans to enforce a 5% CBG blending by 2028.
• Emerging Energy Frontiers:
  • Pilot projects in Tamil Nadu and Gujarat are part of offshore wind efforts, which aim to award 37 GW of contracts by 2030 using viability gap funding.
  • In order to create clean energy solutions that are available around-the-clock, hybrid and round-the-clock power policies encourage wind-solar hybrids and firm & dispatchable renewable energy (FDRE).
• Investment and Global Leadership:
  • With the mission of “One Sun, One World, One Grid,” India founded the International Solar Alliance, which brings together more than 100 nations.
  • Almost 8% of all foreign direct investment inflows into India came from the renewable energy industry in the fiscal year 2024–2025, up from roughly 1% in FY21.
  • Global investors pledged to spend Rs 32.45 lakh crore in India’s renewable energy future by 2030 during RE-spend 2024.

What are the Main Problems Facing the Renewable Energy Sector in India?

• Roadblocks in Shifting from Coal to Renewables: The significant reliance on coal for jobs and local economies in states like Jharkhand and Chhattisgarh, as well as infrastructure designed for coal-based electricity, are significant obstacles to India’s shift from coal to renewable energy.
• Financing Gaps: India needs Rs 2 trillion a year in finance to construct its 500 GW of renewable energy capacity by 2030, which is half of its whole 2023–24 Union budget. Furthermore, many investors are put off by the high initial expenses of renewable energy infrastructure as well as the comparatively poor rate of return on investment.
• Grid Integration & Storage Challenges: Because renewable energy sources, particularly solar and wind, are intermittent, grid stability is threatened, necessitating stronger energy storage and better infrastructure. There is a need for 411 gigawatt-hours (GWh) of energy storage capacity by 2032, however as of March 2024, the total installed energy storage capacity was 219.1 MWh.
• Supply Chain Vulnerabilities: China continues to be India’s top supplier of solar cells, with a roughly 56% market share in FY2024. It also supplies the majority of wind turbines. India is largely dependent on China for vital minerals, importing most of its cobalt and lithium needs—more than 70% of China’s supply is used to make components for renewable energy.
• Land & Environmental Constraints: With solar power requiring 4–5 acres/MW and wind energy requiring 2–40 acres/MW, depending on location and infrastructure, the growing demand for solar and wind farms presents serious land concerns.
• E-waste and End-of-Life Management Issues: A major obstacle to sustainable growth is the increasing amount of e-waste, especially from solar panels, as inappropriate disposal can release hazardous substances like lead and cadmium into the environment.

How Can India Meet Growing Energy Demand by Quickly Adopting Renewable Energy?

• Optimize Land and Water Resources: Install floating solar panels (like as those at the Omkareshwar Floating Solar Park in MP) in reservoirs, lakes, and coastal locations to bring about the floating solar revolution. This will save land, cut down on water evaporation, and increase energy efficiency.
• Develop Renewable Energy Clusters: To promote the expansion of renewable energy, create Renewable Energy Special Economic Zones (RE-SEZs) with simplified approvals, financial incentives, and integrated value chains from research and development to production.
• Leverage Digital and Emerging Technologies: Use blockchain-enabled peer-to-peer trade for renewable energy to empower prosumers and decentralize markets. At the same time, make investments in battery storage, pumped hydro, and smart grids to efficiently handle the unpredictability of renewable energy sources.
• Expand Renewable Infrastructure: In addition to decentralized options like rooftop solar, microgrids, and solar irrigation pumps, India may increase its renewable energy supply by putting Vertical Axis Wind Turbines (VAWTs) on rooftops to harness urban wind.
• Promote Waste-to-Energy and Bioenergy: Utilizing pyrolysis, gasification, and anaerobic digestion, create circular waste-to-energy parks (like Jamnagar Waste-to-Energy Park) that transform garbage into useful byproducts and energy.
• Expand Global Engagement: India can obtain funding for significant renewable projects by utilizing international finance instruments such as the Green Climate Fund and the Loss and Damage Fund.

Conclusion

India is positioned as a worldwide leader in clean energy thanks to its push for renewable energy. Innovations like floating solar, RE-SEZs, and green hydrogen can propel development toward the 500 GW objective by 2030, notwithstanding obstacles like grid integration and finance constraints. SDGs 7 (Affordable and Clean Energy), 13 (Climate Action), and 9 (Industry, Innovation, and Infrastructure) are all supported by this shift, which also advances climate action, ensures energy security, and encourages sustainable growth.

Frequently Asked Questions(FAQs)

Sources:

• https://en.wikipedia.org/wiki/Renewable_energy_in_India
• https://www.ibef.org/blogs/clean-energy-revolution-india-s-transition-towards-renewable-energy-sources
• https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/jan/doc2025122487901.pdf
• https://timesofindia.indiatimes.com/blogs/the-write-wing/indias-renewable-energy-revolution-brighter-skies-ahead/
• https://ieefa.org/resources/indias-renewable-energy-journey-short-term-hiccups-long-term-trajectory-intact?gad_source=1&gad_campaignid=19001748208&gbraid=0AAAAApCWqkj0ROXwuOGAWkGDGJIGu6PCl&gclid=EAIaIQobChMI_8uT25zejQMVGaRmAh3PWzZ6EAAYASAAEgJ7hvD_BwE
• https://economictimes.indiatimes.com/industry/renewables/how-pm-suryaghar-is-empowering-indias-renewable-energy-revolution/articleshow/112699631.cms?from=mdr
• https://indianexpress.com/article/opinion/columns/a-revolution-of-clean-energy-9969205/