Author: PPD Team Date: 10/02/2025
India’s solar energy sector has undergone a transformative journey over the past decade, emerging as a global leader in renewable energy adoption. As of January 2025, the country’s installed solar capacity stands at an impressive 100.33 GW—a monumental leap from just 2.82 GW in 2014, reflecting a growth rate of 3,450%. With 84.10 GW of projects under implementation and 47.49 GW tendered, India is well on its way to achieving its ambitious 2030 renewable energy targets.
Utility-Scale Solar
In 2024 alone, the country added 24.5 GW of large-scale solar capacity, more than double the 11.8 GW installed in 2023. States like Rajasthan, Gujarat, and Tamil Nadu have emerged as solar powerhouses, collectively contributing 71% of the year’s utility-scale installations. Rajasthan led the charge with 5.14 GW, capitalizing on its vast desert landscapes, followed by Gujarat (3.25 GW) and Tamil Nadu (1.30 GW), which leveraged their coastal and industrial infrastructure. Major developers such as Adani Green Energy, ReNew Power, and NTPC Renewable Energy have driven this momentum, supported by streamlined land acquisition and competitive tariffs.
Rooftop Solar
While utility-scale projects dominate headlines, rooftop solar has quietly revolutionized energy access for millions. In 2024, rooftop installations surged by 53% year-on-year, reaching 4.59 GW. The government’s PM Surya Ghar: Muft Bijli Yojana has been pivotal, facilitating over 700,000 residential installations within its first 10 months. Households report savings of 20–30% on electricity bills, with states like Gujarat, Maharashtra, Kerala, and Uttar Pradesh leading adoption. By 2024, cumulative rooftop capacity reached 11,503 MW—a staggering increase from 90.8 MW in 2016.
Hybrid and Round-the-Clock Projects
To address intermittency challenges, India is rapidly scaling hybrid and round-the-clock (RTC) solar projects. A total of 64.67 GW of hybrid/RTC capacity is currently under implementation or tendered, expanding the national solar and hybrid pipeline to 296.59 GW. These projects integrate solar with wind, storage, or thermal power, ensuring stable grid supply even during non-sunny hours. For instance, NTPC’s 1,500 MW RTC auction in 2024 saw tariffs stabilize at ₹2.68/kWh, reflecting the sector’s maturity in balancing cost and reliability.
Domestic Manufacturing
India’s solar ambitions are underpinned by a booming manufacturing sector. Domestic module production capacity skyrocketed from 2 GW in 2014 to 60 GW in 2024, with plans to reach 100 GW by 2030. Key investments include:
- Gautam Solar’s 5 GW module facility in Haryana, set to operationalize by April 2025.
- First Solar’s 3.3 GW plant in Tamil Nadu, inaugurated in January 2024, which uses advanced thin-film technology.
- TP Solar’s 4.3 GW plant in Tirunelveli, now India’s largest, employing cutting-edge TOPCon/Mono PERC cells.
- Adani Solar’s 225 MW plant, part of its vertical integration strategy.
To reduce reliance on Chinese imports, India introduced anti-dumping tariffs, the Approved List of Models and Manufacturers (ALMM-II), and tax rebate reductions. By 2027, domestically produced cells are projected to cover 70–80% of module costs, up from 40–50% today.
Policy Frameworks
Strategic policies have been instrumental in driving growth. The National Solar Mission (NSM), launched in 2010, propelled installed capacity from 9.01 GW in 2016 to 97.86 GW in January 2025. Solar parks, a cornerstone of the NSM, now span 50 locations with a combined capacity of 39,943 MW.
As of 2024, 21,289 MW have been awarded, 11,416 MW operationalized, and 9,873 MW under construction. EPC giants like Jakson Green, Sterling & Wilson, and Vikram Solar are executing these projects, with Jakson Green also announcing a 2,500 MW solar cell facility producing modules with 23.34% efficiency.
The PM-KUSUM scheme has transformed agriculture, solarizing 3.5 million grid-connected pumps and installing 610,000 standalone solar pumps by December 2024—nearly double the 330,000 pumps installed in 2021. This initiative has reduced diesel dependency for irrigation, benefiting 400,000 farmers.
Tariff Trends and Market Maturity
Solar tariffs have steadily declined, reflecting improved technology and economies of scale. In 2024, the average tariff dropped to ₹2.56/kWh, with the lowest bid recorded at ₹2.15/kWh during Rewa Ultra Mega Solar Limited’s auction. NTPC’s 1,500 MW auction saw tariffs peak at ₹2.68/kWh, still lower than 2023’s average of ₹2.86/kWh. This trend underscores India’s ability to balance affordability with project viability.
Equitable Energy Access: Off-Grid and Rural Solutions
Beyond grid-connected projects, decentralized solar solutions are transforming rural India. The PM JANMAN scheme, backed by ₹14.3 billion in funding, aims to electrify 100,000 tribal households and solarize 2,000 public institutions. Off-grid and distributed solar added 1.27 GW in FY2024-25, complementing the national grid and addressing energy poverty in remote areas.
Future Potential and 2030 Roadmap
India’s solar potential remains vast, with an estimated 748 GW of exploitable capacity nationwide. Rajasthan (142.31 GW), Jammu & Kashmir (111.05 GW), and Maharashtra (64.32 GW) top the list of high-potential states.
By aligning economic growth with sustainability, the nation is not just reducing emissions but also democratizing energy access. As global supply chains pivot toward green technologies, India’s progress underscores the viability of a future powered by clean, equitable, and affordable energy.
Featured photograph is for representation only