India’s renewable power capacity is forecast to reach around 530 gigawatts (GW) by 2030, with solar power driving more than 80% of new additions, according to a new report from the International Energy Agency (IEA) launched at the Bharat Renewable Energy Summit in New Delhi.
The India Renewable Energy Market Report 2026 finds that India’s renewable capacity has almost quadrupled over the past decade and surpassed 300 GW in 2026. India is now the world’s second-fastest-growing renewables market and the second-largest manufacturer of solar photovoltaic (PV) modules.
India also reached its target of 50% non-fossil installed power capacity in 2025, five years ahead of schedule, the IEA says. The report’s findings underline how fast clean energy has moved from the margins to the centre of India’s electricity system — and how much still depends on grids, storage and stronger utility finances.
What the IEA report finds
By 2030, solar PV is expected to exceed 350 GW, wind power to approach 90 GW and hydropower to reach 75 GW, according to the report’s breakdown. Renewable electricity generation exceeded 500 terawatt-hours (TWh) in 2025 — around one-quarter of India’s total electricity supply — and is projected to approach 950 TWh by 2030, about 35% of electricity demand.
Solar PV overtook hydropower as India’s largest source of renewable electricity in 2025 and is expected to contribute more than half of renewable generation by 2030. Growth is spreading beyond large power plants, supported by rooftop solar, corporate electricity procurement and expanding domestic manufacturing.
Distributed solar PV for self-consumption is projected to triple to more than 100 GW by 2030, supported by residential rooftop demand and commercial and industrial demand. Corporate power purchase agreements are projected to support around 20% of utility-scale solar and wind additions by 2030.
Energy security gains already delivered
The IEA says renewable electricity saved India more than USD 100 billion in coal and natural gas import costs between 2011 and 2025, with cumulative savings expected to more than double by 2030.
Without the solar PV, wind and bioenergy capacity added since 2010, India’s coal imports in 2025 would have been around 110 million tonnes higher, the report finds. Competitive auctions have helped India achieve some of the world’s lowest solar PV generation costs and become a global leader in procuring hybrid renewable projects.
India’s solar PV manufacturing capacity reached approximately 225 GW in September 2026, supported by the Production Linked Incentive scheme and domestic sourcing requirements. The report also notes India’s push into strategic upstream solar segments, where global dependence on imports from China exceeds 95% in some parts of the supply chain.
Key facts
- India’s renewable power capacity surpassed 300 GW in 2026, after almost quadrupling over the past decade.
- Forecast for 2030: around 530 GW of renewable capacity, with solar PV accounting for more than 80% of new additions.
- India reached 50% non-fossil installed power capacity in 2025, five years ahead of schedule.
- Renewable electricity saved India more than USD 100 billion in fuel import costs between 2011 and 2025.
- By 2030, renewable generation is projected to approach 950 TWh, about 35% of electricity demand.
The challenge ahead: grids, storage and flexibility
The report warns that sustaining the expansion will require faster investment in electricity grids, storage and system flexibility, alongside stronger distribution-company finances and fewer project delays. Addressing these challenges could accelerate renewable power capacity deployment by more than 20% over 2026–2030, the IEA finds.
The share of variable renewables — solar and wind — in India’s electricity supply is projected to rise from around 14% to approximately 26% by 2030, increasing the need for grid infrastructure, storage and flexibility. That shift is the central test of the next phase: building enough clean power is no longer the only task; moving it reliably, at the right time, matters just as much.
“India’s renewables expansion is delivering major benefits for its energy security at a time of heightened uncertainty in global energy markets,” said IEA Executive Director Fatih Birol. “As countries look to strengthen domestic energy supplies, India’s experience shows how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies.”
India’s Minister of New and Renewable Energy Pralhad Joshi said: “India’s emergence as a new giant of renewable energy reflects the progress we have made in recent years. As India’s electricity needs continue to rise, we are laying the foundations for the next phase of growth by strengthening domestic manufacturing, mobilising investment and expanding transmission infrastructure.”
For readers following India’s climate path, Watan News also reported on India’s COP31 climate finance priorities, which set out what New Delhi is seeking from the global climate talks.
