By Sakshi Bansal
India’s renewable energy sector is evolving beyond the well-established solar and wind segments, with increasing momentum across emerging clean technologies such as hybrids, energy storage systems (ESSs) such as battery energy storage systems (BESSs) and pumped storage projects (PSPs), compressed biogas (CBG) and green hydrogen. These segments, once on the periphery, are now moving to the forefront, driven by ambitious government targets, supportive policies and growing private sector investments.
This article provides an overview of the current renewable energy landscape, highlighting the latest developments, policy shifts and market trends shaping India’s transition towards a greener and more resilient energy future.
Solar: Record installations and a push for Made in India cells
As of June 30, 2025, as per the Ministry of New and Renewable Energy (MNRE), the cumulative solar capacity stood at 116.25 GW – the highest among all renewable segments. This includes 89.29 GW of ground-mounted solar capacity, 18.84 GW of rooftop solar (including PM Surya Ghar: Muft Bijli Yojana projects), 3.06 GW of hybrid projects (solar component) and 5.05 GW of off-grid solar capacity.
Solar energy contributed the most to the capacity expansion during the year, with 23.83 GW being added in 2024-25, a significant increase over the 15.03 GW added in 2023-24. This addition can be attributed to an active auction pipeline, rising demand from the commercial and industrial (C&I) sector, increasingly attractive cost economics and low tariffs in the utility-scale solar segment. The lowest utility-scale solar tariffs discovered in tenders have ranged from Rs 2.50 per kWh (NTPC Limited’s 1,200 MW auction conducted in October 2024) to Rs 2.60 per kWh (GUVNL’s 250 MW Phase XXVI auction conducted in March 2025).
Apart from this, the segment has witnessed a rapid shift towards distributed solar deployment. While residential rooftop adoption has surged under the PM Surya Ghar scheme, other segments such as C&I installations and projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) have also gained strong traction, further diversifying solar capacity growth. The PM Surya Ghar scheme has gained positive momentum, with 5,846,936 applications already received. Moreover, substantial financial support has been provided under the scheme, with subsidies worth Rs 94.55 billion disbursed so far. However, the C&I segment continues to dominate India’s rooftop solar installations.
The PM-KUSUM scheme has also witnessed record progress in 2024-25. Under Component B, 0.44 million pumps have been installed, 4.2 times the previous year’s deployment. Meanwhile, Component C has seen the solarisation of 0.26 million pumps, a 25-fold surge since 2023-24. With these additions, the cumulative number of solar pumps installed or solarised under the scheme has surpassed 1 million. The open access and group captive space is also expanding, driven by rising conventional power costs and the pressure to decarbonise operations for C&I consumers, leading them to adopt solar and hybrid power.
The solar manufacturing segment has also witnessed notable growth. As per the MNRE, the solar module manufacturing capacity under the Approved List of Models and Manufacturers has grown to 91.5 GW as of June 30, 2025. As per Lok Sabha questions dated July 30, 2025, the current installed solar cell manufacturing capacity in India stands at 26.35 GW. This segment is poised for further expansion, supported by recent policy developments.
Overall, the solar segment is witnessing a renewed momentum, with record installations, rising interest in distributed solar and a clear policy thrust for domestic solar cell manufacturing. In the fastest quarterly growth yet, 10.6 GW was added between April 2025 and June 2025, underscoring the accelerated momentum. If this trajectory continues, India will be well on track to achieve its 280 GW solar target by FY 2030.
Wind: Onshore momentum and offshore hurdles require decisive action for 2030 targets
As of June 30, 2025, India’s wind power capacity stands at 51.67 GW, the second highest in the renewables sector. In 2024-25, the country added 4.1 GW of new wind capacity, compared to 3.25 GW in 2023-24. The onshore wind segment has received a significant boost owing to hybrids and firm and despatchable renewable energy (FDRE) projects, enhanced transmission planning and sector-specific renewable purchase obligations. Since August 2024, the lowest utility-scale wind tariffs discovered in tenders have ranged from Rs 3.56 per kWh (GUVNL’s VIII 200 MW auction conducted in October 2024) to Rs 3.98 per kWh (SJVN Limited’s 600 MW auction conducted in January 2025).
The offshore wind segment also appeared to be gathering pace in 2024 following tender announcements and policy interventions. However, the segment received a setback recently when the Solar Energy Corporation of India (SECI) cancelled two offshore wind projects – a 500 MW project in Gujarat and a 4,000 MW seabed lease rights allocation – more than a year after the tenders had been issued, citing a lack of developer participation. This development comes despite the government’s push through viability gap funding (VGF) support in FY 2024 and extended bidding timelines.
While offshore wind faces early hurdles, opportunities for accelerating wind growth remain strong onshore. In particular, repowering ageing wind farms in high-potential states such as Tamil Nadu, Gujarat and Maharashtra could deliver substantial capacity gains and improve generation efficiency. Overall, meeting India’s long-term energy transition goals will demand decisive action – scaling annual wind installations to 10-15 GW by 2030, while converting offshore ambitions into concrete projects and maximising onshore gains.
Bioenergy: CBG momentum and ethanol push reposition the sector
India’s bioenergy sector is steadily gaining traction, with the total installed capacity reaching 11.6 GW as of June 30, 2025. This includes 9.82 GW from biomass power/bagasse cogeneration, 921.79 MW from non-bagasse biomass cogeneration, 309.34 MW from waste-to-energy (WtE) and 543.86 MW from off-grid WtE. To harness the full potential of the segment, newer areas such as CBG, ethanol blending and biomass co-firing in thermal plants have received strong policy and industry backing.
Under the GOBARdhan scheme, 1,485 biogas plants have been registered, with 1,088 functional plants, 117 completed plants and 169 plants under construction. The CBG segment has, however, received much more policy and industry focus over the years. As of August 5, 2025, 1,125 projects have been registered on the government’s portal, 239 are under construction and 151 are currently operational. There has also been a sharp rise in the number of CBG plants, from just three in 2019-20 to 100 in 2024-25.
India’s ethanol blending initiative has also gained traction. According to a Lok Sabha question dated July 24, 2025, the Ethanol Blended Petrol programme has seen blending levels rise from 1.53 per cent in 2014 to 19.92 per cent in June 2025, supported by a surge in ethanol procurement, from 380 million litres in 2014 to 4.4 billion litres in 2025. Overall, with strong policy support and emerging subsegments, bioenergy is becoming a key pillar of India’s clean energy push.
Green hydrogen: Policy thrust, auctions and innovation drive momentum
The government has taken significant steps to promote the adoption of green hydrogen and its derivatives. The release of the Green Hydrogen Policy in February 2022 and the National Green Hydrogen Mission (NGHM) in January 2023 have provided a clear framework for the development of the green hydrogen ecosystem in India.
This has led to the launch of successful auctions for domestic electrolyser manufacturing and green hydrogen production. Recently, SECI’s Mode 2A, Tranche I green ammonia auction has witnessed record-low bids. In total, there are 13 planned green ammonia auctions for this tender, collectively targeting a procurement capacity of 724,000 million tonnes per year for fertiliser plants. ACME Cleantech Solutions, NTPC Renewable Energy Limited, Oriana Power, Jakson Green, Onix Renewable and a consortium of SCC Infrastructure and InSolare have emerged as winners till now, with tariffs ranging from Rs 50.75 per kg to Rs 55.75 per kg. The success of these consecutive auctions signals India’s growing price competitiveness in the green ammonia space globally.
Storage and hybrids: Gaining traction for more reliable grids
The need for BESSs is growing significantly, prompting government action. The momentum is evident from 16 standalone BESS auctions held since 2024-25, driven by falling battery prices. Of these, nine auctions have been held since April 2025. These auctions have revealed pricing trends that highlight the impact of VGF and project specifications on tariff outcomes. The lowest discovered tariff emerged from NHPC Limited’s 500 MW/1,000 MWh auction (June 2025) at Rs 208,000 per MW per month. Meanwhile, Bihar State Power Generation Company Limited’s 125 MW/500 MWh (July 2025) yielded a higher tariff of Rs 444,000 per MW per month. Notably, the NHPC tariff was achieved in a non-VGF tender, signalling growing commercial viability in the sector.
There has also been an increased uptake of FDRE and hybrid projects as utilities and C&I clients both seek cleaner energy sources. Since the beginning of 2024-25, 12 auctions have been conducted in the hybrid space and six in FDRE, witnessing a wide range of tariffs. For hybrid projects, the lowest tariff recorded was Rs 3.19 per kWh in SJVN III – 1,200 MW auction conducted in November 2024. Meanwhile, the highest tariff of Rs 3.43 per kWh was observed in SECI’s VIII 1,200 MW auction, conducted in June 2024. For FDRE projects, the lowest tariff recorded was Rs 4.25 per kWh in SJVN’s II 1,200 MW auction (October 2024). Meanwhile, the highest tariff of Rs 8.50 per kWh was observed in SECI’s 8,000 MWh FDRE VI auction (January 2025).
The way forward
India’s renewable energy sector has entered a new phase – more diversified than ever, with a balanced mix of resources and technologies powering its growth. Solar and wind remain the backbone, but storage, hybrids, bioenergy, PSPs and green hydrogen are gaining momentum while offshore wind is at a critical stage requiring sustained policy push and developer confidence to move beyond early setbacks. The focus is no longer on just generation; it now spans domestic manufacturing, strengthening of supply chains and reducing import dependence. From utility-scale projects feeding the national grid to tailored solutions for C&I and residential consumers, there is something for every segment.
