Overview of India's Solar Energy Transformation

India's installed solar power capacity has expanded more than fiftyfold, from about 3 GW in 2014 to 162.15 GW as of June 30, 2026, making solar power the largest component of the country's renewable energy capacity. This remarkable growth has been supported by favourable policies, infrastructure development, domestic manufacturing, and public participation.

Key Milestones and Statistics

Capacity Growth

  • Fiftyfold expansion: From 3 GW (2014) to 162.15 GW (June 2026)
  • India added 37 GW of solar capacity in 2025, surpassing the United States in annual additions
  • World's second-largest solar growth market
  • Utility-scale projects: Around 118.79 GW
  • Grid-connected rooftop systems: 27.88 GW
  • Record capacity addition: 44.61 GW during FY 2025-26 (nearly twice the 23.83 GW added in FY 2024-25)
  • Domestic manufacturing: Expanded from 2.3 GW (2014) to nearly 172 GW (March 2026)
  • Total non-fossil fuel capacity: 283.46 GW (including 274.68 GW renewable energy)
  • Highest annual addition: FY 2025-26 recorded 55.29 GW of non-fossil fuel capacity
  • Renewable share: 51.5% of India's electricity demand met by renewables on 29th July 2025

Regional Leaders

Major states driving India's solar capacity include Rajasthan, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, and Maharashtra. Key solar parks include:

  • Bhadla Solar Park (Rajasthan): 2,245 MW installed capacity
  • Pavagada Solar Park (Karnataka)
  • Rewa Ultra Mega Solar Park (Madhya Pradesh)

Policy Architecture: Five Pillars of Solar Expansion

1. Creating Vision: Climate Commitments

  • Panchamrit goals announced at COP26 in Glasgow: 500 GW non-fossil fuel capacity by 2030, net-zero by 2070
  • Mission LiFE: Promotes sustainable consumption and environmentally responsible lifestyles
  • Reflected in updated Nationally Determined Contributions under the Paris Agreement

2. Creating Demand: National Missions and RPOs

  • National Solar Mission: Provided initial momentum with long-term capacity targets
  • Renewable Purchase Obligations (RPO): Mandates distribution companies to procure specified renewable share
  • RPO trajectory: Notified up to 2029-30, with 35.95% target for 2026-27
  • PM Surya Ghar Muft Bijli Yojana: Promotes household rooftop solar
  • PM-KUSUM: Supports solar pumps and feeder solarisation in agriculture

3. Lowering Costs: Competitive Bidding

  • e-Reverse Auction mechanism: Developers compete to supply electricity at lowest tariff
  • Solar tariffs declined sharply:
  • 2010: ~₹18 per unit
  • 2017: ₹2.44 per unit (Bhadla Solar Park record low)
  • Levelised Cost of Electricity (2025): USD 35/MWh (vs global average USD 44/MWh)
  • Solar Energy Corporation of India (SECI): Expanded transparent tariff-discovery process

4. Enabling Infrastructure

  • Solar Parks Scheme:
  • Initial target: 20 GW → Increased to 40 GW (2017)
  • 54 solar parks with 39,188 MW sanctioned capacity (as of February 2026)
  • State-wise capacity: Gujarat (12,150 MW, 7 parks), Rajasthan (10,726 MW, 11 parks), Madhya Pradesh (4,208 MW, 9 parks)
  • Green Energy Corridor Programme: Transmits renewable electricity from resource-rich regions
  • Evacuated 24,567.8 MW (February 2026)
  • Planned projects across ten states to support ~44 GW

5. Supporting Manufacturing

  • Solar Manufacturing PLI Scheme:
  • Launched 2021: ₹4,500 crore
  • Expanded 2022: Additional ₹19,500 crore
  • Attracted ~₹35,000 crore investment (by October 2024)
  • Generated ~10,000 direct jobs
  • ALMM Framework (2019): Ensures quality and performance standards for solar modules, encourages domestic manufacturing

Major Government Schemes

PM Surya Ghar: Muft Bijli Yojana

  • Launched: February 2024
  • Outlay: ₹75,021 crore
  • Provides subsidies and collateral-free loans for residential rooftop solar
  • 43 lakh households solarised (June 2026)
  • ₹14,771.82 crore disbursed as Central Financial Assistance (December 2025)
  • 7.7 lakh households received zero electricity bills
  • World Bank approved financial support for expansion

PM-KUSUM

  • Launched: 2019
  • Promotes decentralised solar plants, standalone solar agricultural pumps, and solarisation of grid-connected pumps
  • Benefits for farmers: Reliable daytime irrigation, reduced diesel dependence, surplus electricity sales
  • Targets: ~34,800 MW by 2026-27
  • Central financial assistance: ₹34,422 crore
  • Achievements:
  • 11.49 lakh off-grid solar pumps installed
  • 15.89 lakh pumps covered through feeder-level solarisation
  • 1,726 MW decentralised capacity commissioned
  • 21.77 lakh farmers benefited
  • Contribution: 16.3 GW (36% of 44.61 GW added in FY 2025-26), including 7.6 GW from PM-KUSUM and 8.7 GW from rooftop solar

International Cooperation

International Solar Alliance (ISA)

  • Co-founded: By India and France at COP21 (2015)
  • Purpose: Promotes solar deployment, technology exchange, capacity building
  • Member countries: Maldives, Greece, Germany, Italy, Bhutan, Luxembourg, Argentina, and others

One Sun One World One Grid

  • Proposed by India: 2018
  • Objective: Create interconnected global renewable electricity grid for cross-border energy exchange

Green Grids Initiative (GGI-OSOWOG)

  • Launched: At COP26 (2021) by India and United Kingdom
  • Supporters: Australia, France, United States, and other countries
  • Benefits: Renewable-energy trade, balance demand-supply, strengthen global energy security

India's Global Leadership

  • Supports technology access and renewable-energy development across the Global South
  • During G20 Presidency, helped build consensus on tripling global renewable-energy capacity by 2030

Pradhan Mantri Surya Sarovar Yojana (PM-SSY)

  • Approved: 2026
  • Target: 5,000 MW of floating solar photovoltaic projects with co-located energy storage systems
  • Strategic significance: Addresses land scarcity and grid reliability

Significance for India

  1. Energy Security: Reduced dependence on fossil fuel imports
  2. Climate Commitments: Progress toward Panchamrit goals and net-zero 2070 target
  3. Economic Growth: Job creation through manufacturing and installation
  4. Rural Development: PM-KUSUM transforming agricultural practices
  5. Energy Access: Rooftop solar reducing household electricity costs
  6. Global Leadership: Second-largest solar market strengthening international influence

Related Constitutional/Legal Provisions

  • Article 48A (Part IV): Directive Principles of State Policy - Protection and improvement of environment
  • Article 51A (Part IVA): Fundamental Duties - Duty to protect natural environment
  • Paris Agreement (2015): India's NDCs and climate commitments
  • UN Sustainable Development Goals: Particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action)