The Solar Surge: India’s Rapid Transition Toward a Net Zero Future

Context:

India surpassed its COP26 commitment, achieving over 50% non-fossil fuel installed power capacity five years ahead of the 2030 target.

India’s Fast-Track Green Transition and Renewable Energy Leadership

Surpassing Renewable Targets

India achieved 50.07% of installed power capacity from non-fossil fuels (242.8GW out of 484.82GW) by June 2025, surpassing the COP26 target five years early.

Global Renewable Rankings

Solar Power Output

India produced 1,08,494GWh of solar energy in 2025, overtaking Japan to become the third-largest solar power producer.

Expansion of Solar and Renewables

Solar Capacity Growth
- Total solar capacity:02GW (as of July 2025); marked by a 4,000% increase in the last decade.
- Composition:99GW (ground?mounted), 19.88GW (rooftop), 3.06GW (hybrid), 5.09GW (off?grid).
Geographic Potential
- India's solar potential: 748GW; high-potential states include Rajasthan, J&K, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Gujarat.
Record Surge in Installation
- Renewable energy installed capacity:99GW in 2025, up from 76.37GW in 2014.

Manufacturing and Domestic Industry Boost

Solar Manufacturing Capacities
- Module manufacturing grew from 38GW (March 2024) to 74GW (March 2025).
- PV cell manufacturing rose from 9GW to 25GW in the same period.
- Ingot-wafer manufacturing initiated (2GW).
Policy Support
- Mandatory Indian-made panels for government-backed projects
- Basic Customs Duty (BCD) on imports since April 2022 to incentivize local manufacturing.

Flagship Schemes & Policy Initiatives

PM Surya Ghar: Muft Bijli Yojana
- Budget: ?75,021 crore; targets 1 crore households with up to 300 units/month free electricity through rooftop solar installation.
PM-KUSUM
- Subsidies (30-50%) for farmers installing solar pumps; support for decentralized solar plants up to 2MW; builds farmer energy security and additional income.
Solar Parks Scheme
- Target:40GW by March 2026.
- Progress: 53 parks (39,323MW approved, 13,896MW operational in 26 parks).
PM JANMAN: Tribal Electrification
- ?515 crore allocated to electrify 1 lakh un-electrified households in PVTG areas across 18 states.
Floating Solar Projects and Agrivoltaics
- Projects such as Omkareshwar Floating Solar Park and agrivoltaics demonstration sites exhibit innovation in land and water use.

Green Hydrogen and Alternative Energies

National Green Hydrogen Mission
- By 2030:5 million tonnes annual production, ?8 lakh crore investment, 6 lakh jobs, significant fossil-fuel import reductions.
International Collaboration
- International Solar Alliance (ISA) and One Sun One World One Grid (OSOWOG): multilateral efforts to enhance global solar connectivity and technology sharing.

Renewable Sector: Current Overview and Additional Contributions

Ethanol Blending
- Ethanol blending in petrol reached 17.98% by Feb 2025; target of 20% by 2025–26.

Policy Roadmap and Future Outlook

Government Priorities for 2030 Targets
- Long-term Contracts: Investor confidence
- Grid Strengthening: Smart grids, storage
- Make in India: Further localization of supply chains
- Smart Land Use: Floating and farm-based solar
- Easy Financing:Enabling capital flow for RE projects
Green Jobs and Economy
- Job creation and investment—solar and green hydrogen sectors highlighted for potential to generate millions of jobs by 2030.
Net Zero by 2070
- India remains committed to achieving net-zero emissions by 2070, with a 45% reduction in carbon intensity by 2030 (over 2005 levels) in line with its Paris Agreement NDC.

Challenges Ahead:

Energy Storage:Need for rapid scaling of energy storage to ensure grid stability as RE share rises
Manufacturing Ecosystem:Upgradation in solar PV technology, expanded supply chains
Skilling and R&D:Address skilled workforce requirements for new technologies (incl. hydrogen, storage)
Financing:Mobilisation of low-cost, large-scale finance for both grid and off-grid RE

Way Forward:

Accelerate deployment of grid-scale storage and advanced forecasting systems
Strengthen policies for domestic R&D in RE and hydrogen
Expand mini-grid and decentralized renewable systems for last-mile access
Maintain policy certainty and invest in capacity building for implementing agencies
Explore regional and cross-border RE trade through platforms such as ISA and OSOWOG