By Sakshi Bansal
India’s renewable energy sector has recorded robust growth across technologies, underpinned by policy support. As of November 30, 2025, the country’s total installed renewable energy capacity (including large hydro) stood at 254 GW, up from 220 GW in March 2025, as per the Ministry of New and Renewable Energy (MNRE). This represents a 15.4 per cent increase since the beginning of FY 2025-26, driven largely by 27 GW of new solar capacity and 3.9 GW of wind additions.
This expansion reflects the government’s sustained commitment to the clean energy transition, backed by higher budgetary allocations, targeted incentive schemes and regulatory refinements aimed at improving implementation. Over the past three months, policymakers have introduced a series of measures spanning solar, wind, bioenergy, green hydrogen and energy storage. Renewable Watch takes a closer look at the key policy developments across these segments.
Solar
The solar sector continues to be the primary growth engine of India’s renewable energy landscape. With 27 GW added between April 1, 2025, and November 30, 2025 – the fastest pace recorded so far – the segment is witnessing renewed momentum. The segment has seen a pronounced shift towards distributed solar deployment, with residential rooftop adoption gaining pace under the PM Surya Ghar: Muft Bijli Yojana. Multiple new guidelines and amendments to boost outcomes under the scheme have been released recently.
In October 2025, the MNRE issued guidelines for the release of central financial assistance (CFA) for rooftop solar projects under the Utility-Led Aggregation (ULA) model of the PM Surya Ghar scheme. According to the guidelines, CFA will be released in a single tranche, contingent upon the successful installation, inspection and commissioning of rooftop solar systems. No portion of the CFA will be released in advance. Additionally, the implementing agency will use the ULA redeem option on the national portal to initiate disbursement and specify consumer-wise and vendor-wise details.
In October 2025, the MNRE revised the guidelines for the awareness and outreach component of the scheme. As per the amended guidelines, a representative from the Information and Public Awareness Division of the MNRE at the level of director/deputy secretary or equivalent will be a permanent member of the awareness and outreach committee. Officials from state implementing agencies and concerned central ministries or departments will now participate as special invitees only when proposals related to them are considered. Earlier, these entities were listed as regular members of the committee.
Wind
Alongside solar, the wind sector has seen policy action focused on strengthening manufacturing standards and quality assurance. The MNRE, in December 2025, issued an amendment to the standard operating procedures (SOPs) for the Approved List of Models and Manufacturers (ALMM) – Wind and ALMM wind turbine components (ALMM – WTC). The ministry has amended the performance efficiency and safety issues clause of the SOP. Under the revised clause, the committee will continue to evaluate turbine performance, ensuring that the power curve is tested and certified by an accredited laboratory as per IEC 61400-12-1 standards. All supporting performance data must also meet regulatory requirements, including performance in relevant geographical conditions.
However, according to the amendment, manufacturers have been encouraged to conduct prototype testing in India. Furthermore, prototype testing within the country will be mandatory after two years from the date of issuance of this amendment, subject to review. The other clauses of SOP remain unchanged.
Bioenergy
Policy support for bioenergy has continued through incremental budgetary enhancements and procedural simplifications under the National Bioenergy Programme (NBP). Launched in November 2022 with a total outlay of Rs 17.15 billion for the period FY 2021-26, the programme has emerged as a key driver for biomass, biogas and waste-to-energy (WtE) projects.
The MNRE, in September 2025, approved an additional budget of Rs 1.4 billion for Phase I of the NBP. As part of this additional budget, Rs 375 million has been allocated to the WtE scheme, Rs 525 million to the biomass scheme and Rs 500 million to the biogas scheme. Furthermore, with the approval of the supplementary budget, the total outlay under Phase I of the NBP now amounts to Rs 9.98 billion. Earlier, the approved budget outlay was Rs 8.58 billion.
The MNRE, in the same month, issued clarifications regarding the WtE programme under Phase I of the NBP, which was originally notified in November 2022 and revised in June 2025. As per the updated guidelines, performance inspection of bio-compressed natural gas plants requires three consecutive months of operation, including continuous 24-hour functioning at a minimum of 80 per cent of the rated capacity or the maximum capacity eligible for CFA, whichever is lower.
Further easing compliance, the MNRE, in October 2025, simplified the documentation and application process of its WtE programme. According to the revised guidelines, documentation has been reduced across all three project stages. At Stage 1 (application stage), developers are now required to submit only the detailed project report, loan sanction letter (if applicable) and an undertaking on Rs 500 non-judicial stamp paper. Furthermore, at Stage 2 (during the initial 50 per cent claim), only documents such as the consent to operate (CTO)/acknowledgement certificate, bank guarantee and bank mandate form are needed. For stage 3 (before final disbursement), a combined plant inspection report needs to be submitted.
Green hydrogen
Policy momentum in the green hydrogen space continues to grow with the introduction of various guidelines and incentives.
In September 2025, the MNRE, with the National Institute of Solar Energy, invited proposals for pilot projects from start-ups developing innovative green hydrogen production or utilisation technologies. Under this initiative, the total fund allocation is Rs 1 billion until 2025-26. For each project, Rs 0.05 billion or 80 per cent of the total equipment cost per start-up will be provided, whichever amount is lower.
In a further boost to developers, the MNRE, in December 2025, clarified that renewable energy projects supplying power exclusively to green hydrogen and green ammonia developers will be eligible for a relaxation from the requirement to use solar cells from ALMM II. This applies to projects awarded capacity under the Strategic Interventions for Green Hydrogen Transition Programme’s Mode-2A and Mode-2B. The relaxation will be applicable to projects for which the bid submission deadline was on or before August 31, 2025. This will be applicable irrespective of the project’s commissioning date.
Storage
As renewable energy penetration increases, the need for energy storage has become increasingly critical. Reflecting this, the government and regulators have introduced several reforms to create an enabling framework for storage deployment.
In September 2025, the Ministry of Power (MoP) amended the Electricity Rules, 2005, to formally recognise energy storage systems (ESS) as standalone assets in the power sector. The new rules allow ESS to be owned, operated, leased or developed by a wide range of entities, including utilities, system operators and private players. Storage systems can now be deployed independently or alongside generation, transmission or distribution assets. This reform is expected to encourage new business models, attract investment and support the large-scale integration of renewable energy into the grid.
In the same month, the MNRE released draft guidelines for series approval of storage batteries such as lead-acid, lithium-ion and nickel-based types. The guidelines are meant to help manufacturers and testing labs prepare battery product families for mandatory performance testing required for registration with the Bureau of Indian Standards under the Solar Systems, Devices and Component Goods Order, 2025.
Further easing implementation, the MoP, in October 2025, eased the guidelines for implementing battery energy storage systems (BESS) under the viability gap funding scheme by permitting states to deploy projects with a four-hour storage configuration. Under the revised norms, states have been given the flexibility to structure projects differently, provided they retain the right to use a minimum of 6,300 BESS operating cycles over the entire contract period.
In December 2025, the Central Electricity Regulatory Commission released a draft amendment to its 2024 tariff regulations to create a formal tariff framework for integrated ESS co-located with coal, lignite, gas-based plants and interstate transmission system infrastructure. It proposes a separate supplementary tariff for storage, including fixed capacity charges and energy charges, recoverable based on actual audited costs. The draft outlines how the cost of charging energy, whether from the associated generating station, another generating station, market or grid, will be passed through after adjusting for efficiency and auxiliary consumption.
Outlook
Taken together, the recent policy measures across solar, wind, bioenergy, green hydrogen and energy storage point to a more granular and implementation-driven phase of India’s energy transition. Going forward, the sector is poised for continued expansion with a strong policy push, attractive cost economics and rising interest from various stakeholders.
