Introduction:
India is going big on solar energy. The government plans to produce everything at home, from solar materials to solar cells, by 2028. With a target of 500 GW of renewable energy by 2030, this push could make India not just a green energy leader but also self-reliant in solar technology. But is India truly on track to achieve this ambitious goal?
India Renewable Sector Overview:
India stands 4th globally in renewable energy installed capacity, 4th in Wind Power capacity, and 3rd in Solar Power capacity. As of 30 September 2025, India’s total installed electricity capacity has surpassed 500 GW, reaching 500.89 GW, highlighting years of strong policy support, strategic investments, and collaborative efforts across the energy sector.
Over half of this capacity, 256.09 GW, is now derived from non-fossil fuel sources, including renewables, hydro, and nuclear power, while fossil-fuel-based sources account for 244.80 GW. Within the renewable segment, solar power leads with 127.33 GW, followed by wind at 53.12 GW, reflecting the country’s rapid transition toward clean energy.
In the first half of FY 2025-26 (April-September), India added 28 GW of non-fossil capacity compared to 5.1 GW from fossil fuels. On 29 July 2025, renewables met a record 51.5% of India’s 203 GW electricity demand. Solar, wind, and hydro contributed 44.5 GW, 29.89 GW, and 30.29 GW, respectively.
India’s Solar Journey So Far
Just a decade ago, solar energy in India was limited to a few rooftop installations and isolated projects in deserts. Today, the country has made remarkable strides, surpassing Japan to become the world’s third-largest solar power producer.
According to the International Renewable Energy Agency (IRENA), India generated 108,494 GWh of solar power in 2025, outpacing Japan’s 96,459 GWh. The nation’s cumulative solar capacity stands at 127.33 GW, including ground-mounted plants, rooftop systems, hybrid projects, and off-grid installations, reflecting a diversified approach to renewable energy expansion.
Harnessing India’s Solar Potential
India’s geographic advantage, lying largely in the tropical region with abundant sunlight, gives it tremendous solar potential, estimated at 748 GW across the country. States such as Rajasthan, Jammu & Kashmir, Maharashtra, Madhya Pradesh, and Andhra Pradesh are leading the way in clean energy growth.
Boosting Domestic Manufacturing
India’s solar manufacturing sector has grown rapidly, producing modules, PV cells, wafers, and ingots locally. In just one year, module manufacturing capacity almost tripled from 38 GW in March 2024 to 100 GW in September 2025, while solar cell production rose to 27 GW.
The launch of the country’s first ingot-wafer manufacturing facility (2.2 GW) marks a milestone in building a complete domestic solar supply chain. Total overall installed electricity capacity: solar power accounts for 25% and wind power for 11%.
Policy and Government Initiatives
The Indian government is promoting rooftop and decentralized solar adoption through schemes like PM Surya Ghar Muft Bijlee Yojana, which aims to provide up to 300 units of free electricity per month to one crore households by installing rooftop solar panels.
Subsidies range from Rs 30,000 for 1 kW systems to Rs 78,000 for 3 kW or higher, and even families taking loans can save around Rs 15,000 annually on electricity bills. Similarly, the PM-KUSUM scheme supports farmers in replacing diesel pumps with solar-powered ones, offering 30-50% subsidies for new or converted pumps and allowing them to sell excess electricity to local DISCOMs. These initiatives boost energy security for households and farmers while contributing to India’s goal of 50% non-fossil fuel capacity by 2030.
For large-scale solar generation, India is developing solar parks and ultra-mega solar projects, targeting 40 GW by March 2026. Currently, 53 solar parks with a combined capacity of 39,323 MW have been approved across 13 states, with over 13,800 MW already operational. Innovative projects like the Omkareshwar Floating Solar Park in Madhya Pradesh, planned at 600 MW, and agrivoltaics initiatives allow solar installations on water bodies or farmland, saving land and increasing farmer incomes.
India is also leading global solar efforts through the International Solar Alliance (ISA) and the One Sun, One World, One Grid (OSOWOG) initiative. ISA, launched with France in 2015, brings together 100+ countries to mobilize $1 trillion by 2030, reduce technology costs, and promote affordable solar energy, focusing on Least Developed Countries and Small Island Developing States.
To achieve the 500 GW non-fossil capacity target by 2030, the government has approved a Rs 7,000 crore exemption for NLC India Renewables Limited (NIRL) to expand its renewable capacity from 2 GW to 10 GW by 2030 and 32 GW by 2047. These steps, combined with rooftop, utility-scale, and global solar initiatives, are driving India’s clean energy transition, creating jobs, supporting rural incomes, and helping the country meet its COP26 and net-zero commitments.
The Solar Manufacturing Outlook
India is accelerating its push for a fully indigenous solar manufacturing ecosystem, targeting domestic production of solar cells, wafers, ingots, and polysilicon by 2028. Currently, the country has 2.2 GW of wafer capacity and relies heavily on imports from China. The government has already established swadeshi modules and cells, with a roadmap in place for wafers, ingots, and polysilicon.
The Approved List of Models and Manufacturers (ALMM) for solar modules is already in effect, and from June 2026, it will cover solar cells as well. Under initiatives like PM Suryaghar Yojana, India has installed 2 million rooftop solar systems and is set to reach 5 million.
Further, the government plans to achieve net zero by 2070, with targets of 1,800 GW renewable capacity by 2047 and 5,000 GW RE capacity by 2070. Further, with peak power demand projected to rise from 250 GW in 2024 to 334 GW by 2030, India aims to have 777 GW of installed capacity, with 62-64% from renewables and 36-38% from thermal sources, supporting its long-term net-zero ambitions.
Solar Stocks to Watch:
Adani Green Energy: Adani Green Energy Ltd (AGEL) is India’s largest renewable energy company, developing and operating utility-scale solar, wind, hybrid, and storage projects. With an operating portfolio of over 16.7 GW across 12 states, AGEL aims to reach 50 GW by 2030 in line with India’s clean energy goals.
Tata Power Company: Tata Power Company Limited, part of the Tata Group, is a leading integrated power company with a diversified 26.03 GW portfolio, including 17.2 GW of green energy. It targets over 20 GW of clean capacity by 2030, with at least 70% of its total power generation from renewable sources.
NTPC Green Energy: NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, is India’s largest renewable energy public sector enterprise (excluding hydro). Focused on developing and operating solar and wind projects through long-term PPAs, NGEL has 5,419 MW of operating capacity in solar and 483 MW in wind and targets 60 GW by 2032.
Waaree Energies Ltd: Waaree Energies Limited is India’s leading renewable energy company with manufacturing capacities of 18.7 GW for solar PV modules and 5.4 GW for solar cells. Operating across India and 25+ countries, it offers solar panel manufacturing, EPC services, and project development, driving a sustainable and greener future.
JSW Energy: JSW Energy Ltd is one of India’s leading private power producers with diversified assets in power generation and transmission. As of Q2 FY26, it has an installed capacity of 13,211 MW and 12,540 MW under construction, targeting 30 GW of generation capacity by 2030.
Premier Energies Ltd: Premier Energies is one of India’s largest integrated solar manufacturers with over 30 years of industry experience. The company operates with 5.1 GW module and 3.2 GW cell capacities, aiming to expand cell capacity to 7 GW by 2028 and ingot-wafer capacity to 5 GW by December 2027.
Vikram Solar: Vikram Solar Limited is one of India’s leading solar module manufacturers with a global presence across 39 countries. With a current production capacity of 4.5 GW, the company plans to expand to 17.5 GW in modules and 12 GW in cell manufacturing by 2027.
Conclusion
The Indian government’s policy framework clearly demonstrates a strong commitment to achieving self-reliance in the solar energy sector. By focusing on developing a complete domestic value chain, from polysilicon to wafers, cells, and modules, alongside ambitious targets for rooftop and utility-scale solar, India is reducing its dependence on imports and building indigenous manufacturing capabilities.
Initiatives like the ALMM, PM Suryaghar Yojana, and support for solar parks provide both policy certainty and financial incentives, creating a conducive environment for domestic growth.
With its ambitious 500 GW renewable energy goal, having already crossed 100 GW of solar power. India’s push for self-reliance in solar could put it on the path to becoming the world’s solar superpower.
Written by Shashi Kumar
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