India’s renewable energy sector has witnessed remarkable growth over the past decade, solidifying its position as one of the leading nations in the global clean energy transition. According to the Economic Survey 2024-25, the country has made significant progress in expanding its renewable energy capacity, reducing its reliance on fossil fuels, and promoting sustainability. However, challenges such as financing, infrastructure development, and energy storage persist. This article explores the current state of India’s renewable energy sector, key policy initiatives, employment opportunities, and the path forward.
The Indian government has set ambitious targets for renewable energy expansion, aiming to achieve 500 GW of non-fossil fuel capacity by 2030. As of December 2024, India’s total renewable energy installed capacity reached 209.4 GW, marking a 15.8% year-on-year increase from 180.8 GW in December 2023. Renewable energy now constitutes approximately 47% of the country’s total installed capacity. The breakdown of this capacity includes solar power at 97.8 GW, wind energy at 48.2 GW, hydro power at 52.1 GW, and bioenergy at 11.3 GW. Solar power has been the dominant contributor to this expansion, benefiting from declining module costs and favourable policy interventions.
India’s rapid growth in renewable energy is driven by a mix of policy support, private sector investments, and international collaborations. The solar power segment has been particularly instrumental in transforming the energy landscape, with states like Rajasthan, Gujarat, and Tamil Nadu leading the capacity addition. Additionally, initiatives like the Green Energy Corridor have played a critical role in facilitating the seamless integration of renewable power into the national grid. The government has also been promoting decentralised renewable energy solutions, including rooftop solar projects and microgrids, to enhance energy access in remote and rural areas.
Government initiatives have played a crucial role in driving renewable energy adoption in India. One of the flagship programs, the Solar Parks and Ultra-Mega Solar Power Projects, aims to establish large-scale solar capacity. As of December 2024, 55 solar parks with a cumulative capacity of 39.9 GW have been sanctioned, with 12.2 GW already commissioned. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme has also significantly contributed to the expansion of solar energy in agriculture. Under this initiative, 397 MW of decentralised solar capacity has been installed, and 7.28 lakh solarised agricultural pumps have been deployed, reducing the dependence on diesel-powered irrigation.
Another major policy intervention is the Production-Linked Incentive (PLI) Scheme, which aims to support domestic manufacturing of high-efficiency solar photovoltaic (PV) modules. This scheme has received significant interest from private players, with a total capacity of 48,337 MW approved under various phases of the program. Additionally, the National Green Hydrogen Mission, launched to promote green hydrogen production, aims to achieve a capacity of 5 million metric tonnes per year by 2030, significantly reducing carbon emissions from the industrial and transportation sectors. The PM Surya Ghar: Muft Bijli Yojana is another recent initiative launched to install rooftop solar plants in one crore households, targeting an additional 30 GW of rooftop solar capacity by 2027.
India has also begun focusing on offshore wind energy development, recognising its vast potential. The Viability Gap Funding (VGF) scheme has been introduced with a total budget of ₹7,453 crore to develop 1 GW of offshore wind energy projects. Coastal states such as Gujarat and Tamil Nadu are being prioritised for pilot offshore wind projects due to their favourable wind conditions. Despite the high initial costs, offshore wind is expected to play a crucial role in diversifying India’s renewable energy mix and reducing dependency on land-intensive energy projects.
The rapid expansion of the renewable energy sector has had a significant impact on employment and skill development in India. According to the International Renewable Energy Agency (IRENA), India had approximately 1.02 million jobs in the renewable energy sector in 2023, with hydropower remaining the largest employer, providing around 4,53,000 jobs. The solar PV sector has also witnessed substantial job creation, particularly in manufacturing, installation, and maintenance activities. Programs like the Solar Urja Lamps project in Rajasthan and the Global Energy Alliance for People and Planet (GEAPP) initiative have helped enhance employment opportunities, particularly for women in rural areas.
Despite these achievements, the renewable energy sector in India faces several challenges. Grid integration remains one of the primary hurdles, as the intermittent nature of solar and wind power necessitates the development of robust grid infrastructure and large-scale battery storage solutions. The lack of adequate energy storage facilities has led to curtailment of renewable power generation in some regions, reducing the overall efficiency of the sector. Additionally, land availability continues to be a significant issue, with competing demands from agriculture, industry, and urban expansion making it difficult to secure suitable sites for renewable energy projects.
Another major challenge is access to critical minerals, which are essential for the production of solar panels, wind turbines, and battery storage systems. India heavily depends on imports for materials such as lithium, cobalt, and rare earth elements, exposing the sector to supply chain vulnerabilities. The government has been exploring domestic mineral extraction and international partnerships to mitigate these risks, but a long-term solution is still required. Financing and investment also pose significant challenges, as the transition to renewable energy requires massive capital investments. While green bonds and sovereign green bonds have gained traction, further financial instruments are needed to attract large-scale investments from institutional and international investors.
The road ahead for India’s renewable energy sector is filled with both opportunities and challenges. Investment in research and development (R&D) will be crucial in advancing energy storage technologies, improving grid modernisation, and exploring alternative energy sources such as green hydrogen. Public-private partnerships (PPPs) will play a key role in strengthening collaborations between the government and private sector, fostering innovation and accelerating project execution. Additionally, decentralised renewable energy solutions, including rooftop solar and rural electrification projects, will be essential in ensuring equitable energy access across the country.
A circular economy approach in renewable energy must also be prioritised. Establishing policies for the recycling and disposal of solar panels, wind turbine blades, and battery waste will be critical in minimising environmental impact and promoting sustainability. The government has already begun working on e-waste management frameworks, but stricter enforcement and industry participation will be necessary for effective implementation.
India’s renewable energy journey has been commendable, with strong policy support, technological advancements, and increasing private sector participation driving the sector forward. While challenges remain, continued efforts in infrastructure development, investment, and innovation will ensure that India meets its clean energy goals and establishes itself as a global leader in the renewable energy revolution. As the country progresses towards its ambitious 2030 and 2070 targets, the focus must remain on sustainability, affordability, and energy security to create a resilient and inclusive renewable energy ecosystem.
