India crosses a significant mark in its renewable energy development 2025, when it adds 50 GW of capacity. This promising advancement was primarily fueled by an unanticipated wave of investment of nearly Rs2 trillion ($22.32 billion). This landmark achievement highlights India’s determination to move beyond traditional energy sources and make profound strides in reducing the burden of fossil fuels.
As per the latest available data, non fossil fuel capacity in India now stands at about 262GW. That extraordinary number represents 50% of the country’s installed power capacity. This milestone is a significant first step in India’s plan to expand its renewable energy base. It further helps the country to comply with international environmental conventions and protocols.
Investment and Growth in Renewable Capacity
Between January and November of 2025, India brought on approximately 45GW of new renewable capacity, with solar energy taking our front. Solar power made up almost 35GW of those new renewables added in this timeframe. Public sector banks and other financial institutions in India have significant sums invested in renewable energy. They committed about $130 billion (at today’s exchange rate of 76.5) for the development of these projects from 2014 to 2025.
In just fiscal year 2024-25, India poured around Rs2.68 trillion into renewable energy projects. According to industry projections, capital costs for renewable energy projects in India average Rs40 million per MW. In particular, reaching even just the extra 50GW of renewable capacity will require an investment of Rs2 trillion.
Increased Project Commissioning
From 2024, commissioning of projects in India’s renewable sector jumped up by over 50% in 2025. This remarkable increase is a clear testament to the sector’s growing momentum. This increase is largely due to the impact of government interventions, such as the PM Surya Ghar Yojana and the PM-KUSUM programme. These programs work to accelerate the adoption of community solar and help farmers use renewable energy to power their irrigation.
The country is strategically moving towards its renewable energy agenda. The government has an important role to play by catalyzing policies and funding mechanisms that accelerate development in this space. With a record number of projects commissioning to an energy efficient and sustainable standard, that commitment is evident. Importantly, it tackles the growing energy needs across the country.
Current Energy Landscape
Currently, India’s total installed power capacity is 510GW, with fossil fuels making up 247GW of that total. Renewables make up around 254GW, highlighting the direction the country has been taking in recent years towards a cleaner energy future. India’s renewable energy sector is booming at an unprecedented rate. This rapid expansion is a testament to its potential to be a key player in the global fight against climate change.