Half Power, Fully Green: India Hits 50% Non-Fossil Capacity, Surpasses Japan Solar

India has marked a historic milestone in the global renewable energy landscape, overtaking Japan to become the third-largest solar power producer in the world. 

As per the International Renewable Energy Agency (IRENA), India generated 1,08,494 GWh of solar energy, outpacing Japan’s 96,459 GWh. This accomplishment signals not only the country’s rapid advance in clean energy but also reflects the success of assertive government planning and focused policies, the Government of India notes.

4000% Solar Growth 

As of July 2025, India’s total installed solar power capacity stood at 119.02 GW. Of this, 90.99 GW came from ground-mounted plants, which form the bulk of solar capacity in the country. Grid-connected rooftop systems contributed 19.88 GW, while hybrid projects combining solar with other power sources accounted for 3.06 GW. In addition, off-grid solar installations provided 5.09 GW, supporting electricity needs in areas not served by the main grid.

The government notes that India’s solar capacity increased by 4,000 percent over the past decade. The nation's total renewable energy capacity reached 227GW in July 2025, underlining the massive surge in sustainable energy adoption.

Key Solar States driving the surge include Rajasthan, Jammu & Kashmir, Maharashtra, Madhya Pradesh, and Andhra Pradesh.

Local adoption has also played a crucial role. Palli village in Jammu & Kashmir became India’s first completely carbon-neutral panchayat, powered entirely by solar.

Domestic Manufacturing and Supply Chain Strengthening

India’s solar manufacturing ecosystem has undergone explosive growth as well. The solar modules manufacturing capacity nearly doubled year-on-year, from 38 GW in Mar 2024 to 74 GW in Mar 2025.

Furthermore, solar PV cells manufacturing capacity also jumped from 9GW to 25GW in the same period. In addition, India inaugurated its first such facility with a 2 GW capacity, further localising the solar supply chain.

Government mandates now require Indian-made solar products in key schemes, supported by a Basic Customs Duty (BCD) on imported cells and modules, boosting domestic production.

Flagship Government Schemes in Solar Energy

The government has implemented several key schemes which are at the helm of the solar, and renewable, boom India is witnessing.

PM Surya Ghar: Muft Bijli Yojana

Under the PM Surya Ghar Muft Bijli Yojana, the government plans to benefit 1 crore households by providing up to 300 units of free electricity per month through rooftop solar systems. The scheme includes subsidies of INR 30,000 for 1 kW capacity, INR 60,000 for 2 kW, and INR 78,000 for 3 kW or more. 

With these subsidies, the initial investment burden on households is reduced. As a result, families can save around INR 15,000 per year on electricity bills, even after factoring in loan repayments for the solar system, the government said.

PM-KUSUM

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, or PM-KUSUM, scheme is focused on farmers, providing subsidies of 30–50 percent for the installation of solar pumps. Along with meeting irrigation and farming needs, the scheme also allows farmers to sell surplus solar power to the grid, creating an additional source of income. 

Under this program, farmers are permitted to set up solar power plants with capacities of up to 2 MW, helping strengthen rural energy supply and reducing dependence on conventional electricity sources.

Solar Parks Scheme

The Solar Parks Scheme aims to facilitate the development of large-scale solar projects with a target of 40 GW capacity by March 2026. Under the scheme, a total of 53 solar parks with an aggregate capacity of 39,323 MW have been approved across 13 states. 

Out of these, 26 parks are already operational, contributing about 13,896 MW to the country’s installed solar capacity.

Similarly, PM JANMAN focuses on electrifying 1 lakh un-electrified tribal homes across 18 states, supporting inclusive growth through solar.

India’s Renewable Sector at a Glance

As of June/July 2025:

India added a record 29.52 GW of renewable energy in FY 2024–25. The renewable share in electricity generation is now at 50.07 percent, the government data revealed, as the nation progresses toward the 2030 target of 500 GW non-fossil capacity, a goal committed at COP26.

Other Sectors - Highlights

Other renewable sectors, including wind energy, have also contributed to the surge the country has witnessed in the past few years.

As of July 31, 2025, India’s wind energy installed capacity stands at 52.14 GW, with an additional 30.10 GW under construction. During the period from April 2024 to March 2025, wind power generation was 83.35 billion units, contributing about 4.56 percent to the country’s total electricity supply.

In the field of bioenergy and hydro, India has an installed bioenergy capacity of 11.6 GW, supported through the National Bioenergy Programme, which provides central subsidies for projects. On the hydro side, small hydro projects account for 5.11 GW, while the nation’s estimated potential for large hydro projects stands at 133.4 GW. In addition, pumped storage is receiving fresh investments to enhance grid stability and renewable energy integration, the official statement said.

Progress is also being made in ethanol blending, with the blending level in petrol reaching roughly 18 percent by February 2025, a significant rise from 10 percent in June 2022. The target is to achieve 20 percent blending by 2025–26.

Another most talked-about area is green hydrogen, produced from renewable sources such as solar and wind. It is being positioned as a key fuel for decarbonising heavy industries and the transport sector. 

The Growth Continues

India had committed, under the Paris Agreement and its Nationally Determined Contributions (NDCs), to achieving 50 percent cumulative power capacity from non-fossil sources by 2030. As of June 2025, this target has already been met ahead of schedule. The country is currently building on its progress and is now looking to add more renewable power to its disposal.

Recently, an INR 7,000 crore exemption was granted to NLC India Renewable Ltd, which supports large-scale project development and investment flow into clean energy. 

Alongside, the government has introduced stricter norms for domestic manufacturing, ensuring greater reliance on locally produced solar and wind equipment. 

Measures have also been taken to encourage the development of large solar and wind projects while improving the financing framework and contract structures to make investments more secure and attractive.

The priorities under this strategy focus on building a stable foundation for long-term growth. These include the implementation of long-term stable contracts to give investors confidence, and the development of robust grid and battery storage infrastructure to handle increasing renewable integration. 

A key emphasis is placed on Make in India initiatives for solar and wind technologies, which aim to reduce import dependence and boost domestic capability. 

Further, the approach calls for smarter land use solutions, such as floating solar projects and agrivoltaics, to maximise efficiency. Finally, reforms are directed at ensuring easier access to financing, helping renewable energy projects achieve faster implementation and scale.