The Rise of a New Dawn

India's solar sector is entering a golden era. In early 2025, the country surpassed 100GW of installed capacity—a critical milestone on its path toward a 2030 target of 500GW of non-fossil generation capacity.

- VIBHA DHAWAN

This achievement is not merely a numerical triumph; it symbolises India's decisive leap toward sustainable energy security and global renewable leadership. Yet, while we celebrate this milestone, we must also understand the drivers behind this growth and what is needed to scale deployment even faster.

India's remarkable ascent from 2.8GW in 2014 to 100GW in 2025 is the result of a well-coordinated blend of visionary policy, strategic financing and technological innovation.

The journey began with the Jawaharlal Nehru National Solar Mission in 2010, which set an initial target of 20GW by 2022. Over the years, initiatives like renewable purchase obligation, waiver of inter-state transmission charges, dedicated solar parks, production-linked incentives (PLIs) for solar, etc, laid the foundation for a transformation.

Growth Drivers

India's policy landscape has aggressively prioritised solar energy. The National Electricity Plan 2023 not only charts a course for generation capacity but also outlines massive transmission expansion to handle peak demand—projected at 458GW by 2032—and to evacuate 365GW of solar energy by 2032.

Complementary measures include extending interstate transmission charge waivers for solar and wind projects through 2025, implementing single-window clearances and streamlining permitting processes, all of which have significantly improved project economics.

Investment in India's renewables is surging. Foreign direct investment (FDI) in the sector jumped 50% year-on-year in financial year 2024, reaching $3.76bn, with a cumulative $17bn invested since 2010 to fund solar parks, module factories and innovative start-ups. The rise of green bonds has further transformed financing.