India's State Dynamics and Solar- Watch Out For Maharashtra, Gujarat

When the talks are about solar energy, India is a leader, one of the global majors, in new energy capacity addition. Thanks to aggressive solar policies of the country that is also a major coal-dependent market, it propelled itself toward clean and renewable power.

However, just like any other country, the solar adoption was different in various states of the nation. The new solar PV addition in India varies geographically influenced by several factors, such as states’ policy measures, solar potential, etc. For instance, while Rajasthan has over 25 percent of the country's solar share, Nagaland in the North East contributes less than 3 percent.

Through this blog, we explore India’s changing dynamics of solar revolution, evaluating the hotspots of solar deployment in the past 3-4 years.

Solar - As it Stands

By the end of Jan of 2025, India surpassed 100 GW of total solar energy installation across its vast region, even as over 80 GW projects remained under construction and roughly 50 GW fresh solar projects were in the tendering stage.

In just a few years, India’s solar power landscape has transformed at a breathtaking pace. In mid-2022, India had just over 57 GW of installed solar capacity, and the year closed adding 5-6 GW more. At that time, Rajasthan had recently surged past Karnataka to become the state with the largest solar capacity, thanks in part to its giant Bhadla Solar Park. By the end of the year, Gujarat rose above Karnataka too.

Then and Now…

Fast forward to early 2025, and India’s total installed solar capacity has nearly doubled to over 110 GW, as per the latest data by Ministry of New & Renewable Energy (MNRE).

The leaderboard of states has also seen a shake-up. The table below compares the top solar states in mid-2022 versus early 2025 (as per MNRE data).

Rajasthan remains firmly on top – its solar capacity has more than doubled to almost 30 GW by 2025, cementing the desert state’s status as India’s solar powerhouse. Gujarat turned out to be a dark horse, with its solar capacity roughly tripling since early 2022. The capacity now stands second with over 20 GW.

Maharashtra, which was not even among the top five three years ago, has catapulted into third place with roughly 12 GW, up from about 3–4 GW in 2022. Nearly doubling its solar arsenal since early 2022, Tamil Nadu follows closely with about 10.5 GW, thus maintaining its stronghold in solar growth. Karnataka - which had been an early leader - expanded more modestly from 7.6 GW to ~9.9 GW, causing it to slip in rank as others raced ahead.

Meanwhile, Telangana’s growth stagnated (hovering around ~4.5 GW), causing it to drop out of the top five as other states leaped ahead. Telangana rapidly installed solar projects in the late 2010s, reaching to the top ranks by 2022, but did little afterwards.

On the other hand, Maharashtra’s leap has been most striking of all. The state had only a few gigawatts in 2022 but has quadrupled its solar capacity, now exceeding 10 GW. By mid-2023, Maharashtra had already overtaken Telangana to enter the top five with ~4.87 GW, and the momentum now continues through the next couple of years. The leading industrialised state is not stopping anytime soon, with strong corporate demand likely to keep momentum up.

State Policies Fueling the Solar Boom

India’s solar growth story is deeply shaped by state-level policies that have attracted investments and accelerated deployment across regions.

Rajasthan leads the charge with over 30 GW solar capacity by 2025. Leveraging its vast Thar Desert and high solar potential, the state offered land banks and investor-friendly policies like the Rajasthan Solar Energy Policy. Initiatives such as the Ease of Doing Business reforms and mega projects like the 2.2 GW Bhadla Solar Park helped the state double its capacity within a few years.

Gujarat, an early adopter, set benchmarks with the Charanka Solar Park and feed-in tariffs as early as 2009. The 2023 Renewable Energy Policy targets 100 GW by 2030, a major chunk being solar. Gujarat also leads in rooftop solar with over 5.1 GW installed, driven by the Surya Gujarat scheme. The state continues to earmark large wastelands for upcoming solar mega-parks, especially in Kutch, where the 30 GW Khavda solar park plan could actually take it past Rajasthan. An incredible local ecosystem of manufacturing plus service providers is very capable of achieving the unthinkable, as they have already shown.

Karnataka was the first Indian state to cross 5 GW, thanks to projects like the Pavagada Solar Park. However, the pace slowed in recent years due to limited new tenders and a shift towards hybrid projects. Still, Karnataka’s capacity nears 9.9 GW, and expansion plans include three new 2.5 GW solar parks and a 3 GW extension at Pavagada.

Tamil Nadu is catching up fast. With strong solar potential and the 2030 target of 20 GW, the state is rolling out district-level solar parks and incentives for rooftop and utility-scale projects. The 648 MW Kamuthi Solar Park and several new tenders have bolstered growth. Solar now complements the state’s dominant wind portfolio.

Maharashtra has emerged as the surprise leader. From a laggard in 2022, it shot up to 12 GW by 2025. Key enablers include reduced open-access thresholds (from 1 MW to 100 kW), a 5 MW net metering cap, and strong industrial demand. Programs like the Mukhyamantri Saur Krishi Vahini Yojana are driving feeder solarization, targeting 30 percent by 2025.

Each state’s unique approach - land policies, grid incentives, rooftop schemes, or industrial partnerships - has played a pivotal role in reshaping India’s solar map. In addition, the ever-needed private investment has also shaped India’s solar landscape.

Private Investments Supercharging Growth

India’s solar surge owes much to massive private sector investments over the last three years. Domestic giants and global players alike are betting big on the country’s clean energy future.

Reliance Industries, led by Mukesh Ambani, has committed INR 75,000 crore to clean energy, aiming for 100 GW of renewable capacity by 2030. It is building giga-factories for solar modules, batteries, green hydrogen, and fuel cells.

Adani Green Energy (AGEL), part of Gautam Adani’s empire, is matching that ambition. By early 2024, AGEL had an operational portfolio of 10.9 GW. The Adani Group has pledged INR 2.3 lakh crore by 2030, including the development of the 30 GW Khavda renewable park in Gujarat - expected to be the world’s largest on completion. Adani also targeted 10 GW of annual module manufacturing by 2026.

Other major Indian corporates like Tata Group and JSW are also expanding their solar footprints. Leading developers like ReNew Power, Acme Solar, and Azure Power, backed by global funds, are actively commissioning projects across states.

Foreign investment has played a key role. Companies like TotalEnergies and Shell entered India’s solar space, while pension funds and energy giants continue to inject capital. This has helped bring down project financing costs, enabling utility-scale solar parks of 500–1000 MW.

Beyond mega farms, private capital is also transforming rooftops and small towns. Models like RESCO allow solar installations without upfront investment, and green loans are making rooftop adoption easier for homes and businesses alike.

What Lies Ahead

The solar journey of India is far from over – in fact, it’s only picking up momentum. The central government has set an ambitious target of achieving 280 GW of solar power by 2030. To put that in perspective, present levels are barely 40% of the target for 2030. Hitting that goal will require sustaining the rapid growth of the past three years throughout the rest of this decade. Expect a lot more surprises, hits and misses along the way, but have little doubt that 280 GW will not be the challenge it seemed just two years ago.