India set to surpass US in renewable capacity additions for 2025

India is likely to outpace the United States in adding new wind and solar capacity this year, putting the country on track to meet its 2030 target of 500 GW of non-fossil power, according to Bloomberg Opinion, cited by the Economic Times.

In the first half of 2025, India connected 22 GW of new solar and wind capacity. If this pace continues, it will exceed the 40 GW total expected from the US this year. The current momentum reflects a strong rebound after a dip in 2022 and 2023.

Several factors contributed to this turnaround. Easing inflation has lowered financing costs, with the Reserve Bank of India cutting its policy rate by a percentage point since December. Developers also rushed to complete projects before the expiry of a transmission charge waiver for renewables in June 2025.

While the withdrawal of this waiver could temporarily slow progress, India’s clean power pipeline remains strong. Approximately 414 GW of capacity, including solar, wind, hydro, and nuclear, is either operational or under construction.

India’s solar manufacturing output now stands at 91 GW, exceeding domestic demand. With relatively lower tariffs in the US compared to China, Indian manufacturers may benefit from shifting global trade patterns, though new anti-dumping actions have been initiated by US firms.

Despite these gains, India continues to add coal-based capacity to maintain reliability during peak demand, especially in extreme heat. Still, coal-fired power generation declined by 4 per cent in the first half of 2025 compared to the previous year, even as total electricity output grew slightly.

The article notes that India’s transition is driven less by climate commitments and more by economic and demographic shifts. As renewables become the lowest-cost option and urban demand rises, clean energy is aligning with national priorities.

Public responses reflected a mix of optimism and concern. Several comments welcomed India’s rapid growth in renewables, while others questioned whether current targets are sufficient to address air pollution and long-term energy needs. Concerns were also raised about rising coal investments, carbon border taxes, and the affordability of clean power for consumers.