India’s renewable energy landscape is undergoing dramatic change, with solar energy at the core of the country’s ambitions for sustainability and energy security. Here’s a summary of the latest affairs shaping India’s solar sector, based on the most recent news and data from reputable energy sources, including Mercom India.
Major Milestones in Solar Capacity
- Solar Capacity Breakthrough: India’s total installed solar power capacity has now surpassed 105 GW, up from just 2.8 GW in 2014—a staggering 4,000% increase over the last decade. This momentum remained robust in the first half of 2025, with over 7.7 GW added in the first quarter alone.
- Global Leader: India stands as the world’s fourth-largest country by installed renewable energy capacity, after China, the US, and Brazil, with solar playing the largest role.
Key Policy Shifts and Government Initiatives
- 50% Non-Fossil Fuel Capacity: As of June 2025, India has achieved 50% of its total installed electricity capacity from non-fossil fuel sources—five years ahead of its Paris Agreement target.
- Ambitious 2030 Goal: India targets 500 GW total renewable capacity by 2030, with solar set to contribute at least 280 GW.
- Investment Boom: The sector is witnessing major financial inflows. For example, August Energy recently secured $15 million to expand its renewables portfolio, indicating continued investor confidence in Indian solar.
- Support for Grid-Scale Solar: Recent government tenders and regulatory approvals are providing clarity and encouraging expansion—for instance, the Solar Energy Corporation of India’s ongoing O&M contracts for large solar parks, state-wide rooftop programs, and successful auctions for grid-connected projects.
State-Level Leadership
| State | Installed Solar Capacity (GW) | Key Initiatives |
| Rajasthan | 33.46 | Large solar parks, desert solarization, 30 GW+ by 2025 |
| Gujarat | ~10 | 30 GW Hybrid Renewable Energy Park, PM-KUSUM implementation |
| Tamil Nadu | 9.77 | District expansion, target of 20 GW by 2030 |
| Karnataka | 9.31 | Rooftop adoption, utility-scale projects |
| Maharashtra | Significant | “Mukhyamantri Saur Krishi Vahini Yojana,” feeder solarization |
Trending Projects and Auctions
- Recent Wins: Companies like Reliance Infrastructure, JBM Renewables, PNC Infratech, and SAEL Industries have secured major contracts to develop Interstate Transmission System (ISTS)-connected solar projects, reflecting the scale of new endeavors.
- Module Manufacturing: India’s solar module manufacturing capacity has expanded rapidly, now at 91.5 GW, supported by favorable government policies and incentives for localized production.
Challenges and New Solutions
- Grid Stability & Storage: Rapid growth in renewables poses challenges for grid stability. Currently, India has less than 5 GW of storage capacity—mainly pumped hydro—with battery storage in early stages. The government is ramping up efforts, funding battery energy storage systems and waiving inter-state charges for storage projects until 2028.
- Hybrid and RTC Projects: The trend is moving toward hybrid (solar + wind) and round-the-clock (RTC) power projects, addressing intermittency issues and ensuring reliable supply.
- Policy Innovations: New regulations in states like Maharashtra regarding energy banking may limit future rooftop growth, highlighting the evolving regulatory landscape as the market matures.
The Road Ahead
- Decentralized and Rooftop Growth: Rooftop installations and decentralized mini-grid solutions are expanding, enabling wider access in rural and urban areas.
- International Collaboration: Foreign investments and partnerships remain vital, both for capital and for advanced technology access.
- Manufacturing & Supply Chain: India’s efforts to strengthen its local supply chain—across modules, inverters, batteries, and balance-of-system components—are key to building a resilient solar industry.
Conclusion
India’s solar industry is in a transformative phase, marked by strong policy backing, investor enthusiasm, and record-setting capacity additions. While challenges remain—particularly around storage and grid modernization—the country’s progress demonstrates its seriousness about a clean energy future.
For professionals, entrepreneurs, and policymakers, keeping pace with these developments is essential. The solar story in India is not just about sustainability—it’s rapidly becoming one of economic opportunity, global leadership, and technological innovation.
