India's Renewable Energy Sector: Comprehensive Industry Analysis Report | Scrolls
- Editor
- Aug 24
- 2 min read
by KarNivesh | 24 August, 2025
Overview of India's Renewable Energy Sector
India’s renewable energy sector has emerged as one of the fastest-growing markets globally and a key driver of the country’s sustainable development strategy. By 2025, India’s installed renewable capacity is expected to reach 227 GW, with a market valuation of ₹1,984 billion (earlier USD 23.9 billion). The sector has seen exponential growth, including a 25-fold increase in solar exports since 2022, 1.02 million direct jobs, and over ₹1.12 lakh crore in foreign investments in the past decade. India now ranks 4th globally in total renewable energy capacity and aims for 500 GW non-fossil capacity by 2030.
Energy Mix & Market Structure: Renewables currently make up 46.3% of India’s installed power capacity. Solar energy leads with 105 GW (47% of renewable generation), up from just 2.5 GW in 2014. Wind follows with 52 GW, hydro with 52 GW (large + small projects), and bioenergy adds 11.3 GW. India is the second-largest solar PV manufacturer globally with 74 GW module and 25 GW cell capacity. Leading players include NTPC, Adani Green (market cap ₹1.55 lakh crore), Tata Power (₹1.23 lakh crore), Suzlon, and ReNew Power. Government support through Production-Linked Incentives (PLI) worth ₹19,500 crore has fueled domestic manufacturing and reduced import dependence.
Growth & Investment: The sector has grown from ₹1,245 billion in 2019 to ₹1,984 billion in 2024, with projections of ₹3,071 billion (USD 37 billion) by 2030 and ₹4,324 billion (USD 52.1 billion) by 2033 at an 8.1% CAGR. Foreign Direct Investment (FDI) inflows exceed ₹1.21 lakh crore (USD 14.54 billion), with ₹55,000 crore (USD 6.8 billion) M&A deals in just the first half of 2025. Capital is also flowing through green bonds, InvITs, and ESG funds. Technology & Trends: Costs have fallen sharply; solar module prices dropped 30% last year. Rooftop solar is booming with a 116% CAGR, supported by schemes like PM Surya Ghar Yojana (₹75,021 crore budget) providing subsidies to households. Innovations in smart grids, battery storage, AI-based predictive maintenance, and blockchain energy trading are making the sector more efficient.
Opportunities & Challenges: Huge growth potential exists in electric vehicles (requiring 14 GW dedicated renewable capacity by 2030) and green hydrogen (targeting 5 million tonnes annually by 2030 with ₹19,744 crore support). However, challenges include grid infrastructure bottlenecks, DISCOM financial stress, and solar waste projected to reach 4 million tonnes by 2050. India also faces risks from Chinese supply chain dominance and global trade dynamics, though domestic policies like anti-dumping duties on solar glass aim to protect local manufacturers.
Outlook: India must add 273 GW new capacity by 2030 (around 54–55 GW annually) to meet targets. The future looks promising, with strong policy support, corporate adoption, falling costs, and global investment interest. If grid, waste management, and financing challenges are addressed, India is poised to be a global leader in renewable energy, ensuring economic growth, energy security, and climate resilience.
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