India has emerged as one of the world’s fastest-growing renewable energy economies, driven by ambitious climate goals, policy reforms, and rapid expansion of clean energy infrastructure. Recently, the Ministry of New and Renewable Energy (MNRE) highlighted India’s major renewable energy achievements and policy initiatives during FY 2025–26.
The progress reflects India’s commitment toward energy transition, climate action, and sustainable economic growth while reducing dependence on fossil fuels.
Major Renewable Energy Achievements
Global Renewable Energy Ranking
India became the world’s third-largest country in renewable energy installed capacity after China and the United States.
Record Capacity Addition
India added a record 55.29 GW of non-fossil fuel capacity during FY 2025–26, nearly double the additions made in FY 2024–25.
Total Installed Capacity
The country’s total non-fossil fuel installed capacity reached 283.46 GW, of which 274.68 GW came from renewable energy sources.
Renewable Energy Composition
The renewable energy mix included:
- Solar Energy – 54.7%
- Wind Energy – 20.4%
- Large Hydro – 18.7%
- Bioenergy – 4.3%
Solar energy continues to dominate India’s clean energy transition due to declining costs and rapid rooftop and utility-scale expansion.
Paris Agreement Milestone
India achieved its Nationally Determined Contribution (NDC) target of obtaining 50% installed electricity capacity from non-fossil fuel sources five years ahead of the 2030 deadline under the Paris Agreement.
Decline in Fossil Fuel Dependence
Coal-based electricity generation witnessed a decline of 3.69%, leading to negative growth in fossil fuel generation. This indicates gradual decarbonisation of the power sector.
Reduced Import Dependence
Solar module imports reduced sharply from USD 2.15 billion to USD 758 million, reflecting growth in domestic manufacturing and self-reliance.
Major Policy and Regulatory Reforms
Fiscal Incentives
The government reduced GST on renewable energy devices from 12% to 5%, lowering project costs and encouraging wider adoption.
Further, the Basic Customs Duty (BCD) exemption on capital goods for Battery Energy Storage System (BESS) lithium-ion cell manufacturing was extended to strengthen domestic energy storage capacity.
Renewable Energy Equipment Import Monitoring System (REEIMS)
Launched in 2025, REEIMS enables real-time tracking of critical renewable energy equipment imports, improving transparency and supply chain monitoring.
Renewable Consumption Obligation (RCO)
The revised Renewable Consumption Obligation subsumed state-level Renewable Purchase Obligations (RPOs) into a unified national framework, ensuring greater policy coherence and compliance.
Market-Based Instruments
The Central Electricity Regulatory Commission (CERC) issued guidelines for Virtual Power Purchase Agreements (VPPAs), enabling companies to purchase renewable energy virtually without direct physical delivery.
Additionally, the MNRE launched a 500 MW Contract for Difference (CfD) pilot to stabilise renewable energy pricing and encourage investment.
National Policy on Geothermal Energy
India introduced the 2025 National Policy on Geothermal Energy to promote research, international partnerships, and technological development for harnessing geothermal resources.
Waste-to-Energy Reforms
Revised Waste-to-Energy (WtE) guidelines introduced a 50%-50% Central Financial Assistance release structure to improve project liquidity and implementation efficiency.
Expansion of PM Surya Ghar
The PM Surya Ghar: Muft Bijli Yojana was expanded into a demand-driven programme targeting installation of one crore rooftop solar systems by FY 2026–27.
Significance of India’s Renewable Energy Push
Climate Change Mitigation
Renewable energy expansion supports India’s climate commitments and helps reduce greenhouse gas emissions.
Energy Security
Reducing dependence on imported fossil fuels enhances long-term energy security and economic resilience.
Economic Growth and Employment
The renewable energy sector generates green jobs, supports domestic manufacturing, and attracts investment.
Sustainable Development
Clean energy contributes to improved air quality, reduced pollution, and sustainable industrial growth.
Challenges Ahead
Despite strong progress, India still faces several challenges:
- Grid integration and storage constraints
- Land acquisition issues
- Financial stress in DISCOMs
- Dependence on critical mineral imports
- Need for stronger transmission infrastructure
Addressing these challenges will be crucial for sustaining rapid renewable energy growth.
Conclusion
India’s renewable energy achievements in FY 2025–26 demonstrate its emergence as a global leader in clean energy transition. Through strong policy reforms, market innovation, and infrastructure expansion, India is steadily moving toward a low-carbon and energy-secure future. Sustained investment, technological innovation, and institutional coordination will remain essential for achieving long-term climate and energy goals.