The Economic Survey of India 2025-26 has highlighted significant progress in energy generation from non-fossil fuels and renewable sources. It highlights that India has surpassed its goal of achieving 50 per cent installed power capacity from non-fossil fuel sources, which stood at 51.93 per cent at the end of December 2025. The survey further states that from April 2025 to December 2025, a total of 38.61 GW of renewable energy capacity has been installed in the country. This includes 30.16 GW of solar power, 4.47 GW of wind power, 0.03 GW of bio-power, and 3.24 GW of hydro power.
On renewables
- The Survey stated that as of December 2025, 8 GW of rooftop solar capacity had been installed under the PM Surya Ghar: Muft Bijli Yojana. Furthermore, as of December 2025, significant progress was recorded under the PM-KUSUM scheme. Under Component B, more than 975,000 standalone solar pumps had been installed. Under Component C, 11,781 grid-connected solar pumps had been solarised, while 1,189,787 pumps had been covered under feeder-level solarisation, reflecting steady implementation across components.
- Under the development of solar parks and ultra mega solar power projects scheme, 55 solar parks have been sanctioned with a combined sanctioned capacity of 39,973 MW, and 16,121 MW capacity of solar projects installed as of December 2025.
- In the wind energy segment, 4.74 GW capacity was added from April 2025 to December 2025.
- The survey also highlighted key enablers of this renewable energy progress, notably the production linked incentive (PLI) scheme for high-efficiency solar photovoltaic modules. Additionally, under the CPSU Scheme Phase II, 8.2 GW of capacity had been sanctioned, of which 5.5 GW had been commissioned as of December 2025.
On energy storage
The survey highlights the importance of energy storage as the installed renewable energy capacity in the country surges, along with measures adopted to promote its uptake.
- Manufacturing is supported through a Rs 181 billion PLI scheme for 50 GWh of advanced chemistry cell capacity, in which 10 GWh is earmarked for grid-scale storage.
- A grant-based support is provided to pumped storage projects to enable infrastructure. Regulatory clearances have been streamlined for closed-loop projects, and ownership of storage has been liberalised to include consumers.
- Additional measures include advisory norms for co-locating storage of at least 10 per cent of installed solar capacity to improve the dispatchability of solar power.
On critical minerals
Critical minerals are a cornerstone of the renewable energy transition, as they are essential inputs for technologies such as solar panels, wind turbines, batteries, electric vehicles, and energy storage systems. Hence, secure and resilient supply chains of critical minerals are vital for scaling clean energy deployment. Recognising this, the survey highlights key measures undertaken by the government of India for critical minerals.
- The government launched the National Critical Mineral Mission (NCMM) with a financial outlay of Rs 163 billion and an expected investment of Rs 180 billion from public sector undertakings and other sources. The Mission aims to secure a long-term, sustainable supply of critical minerals and strengthen India’s critical mineral value chains, covering all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.
- The Union Cabinet also approved a Rs 15 billion incentive scheme for the promotion of critical mineral recycling under the NCMM. The scheme will incentivise segments of the recycling value chain where actual extraction of critical minerals takes place and will support the development of recycling capacity for critical materials in the country.
- The country is engaging in international partnerships such as the Minerals Security Partnership and the Indo-Pacific Economic Framework.
Issue of financing
Climate finance in India remains skewed towards mature sectors such as solar, wind energy, and energy efficiency. Currently, around 83 per cent of India’s mitigation finance and 98 per cent of adaptation finance are sourced domestically. However, gaps between available finance and actual needs persist, and reliance solely on domestic resources will not be sufficient. The survey states that international public sector climate finance at an affordable cost is essential for mobilising private sector finance and to meet climate ambitions.
