The Future of Renewable Energy in India: Key Trends for the Next Decade

India is at the critical juncture of its energy lifecycle. With growing population, fast urbanisation, and growing requirements of electric power, the renewable energy sector in the nation is due for radical expansion. As the planet moves toward clean energy alternatives, India is both part of the movement and at the forefront in various sectors.  The following article explores the top trends that will shape the renewable energy sector growth in India in the coming decade.

Accelerated Capacity Expansion

Indian renewable energy commitment is clear from the remarkable additions in capacity. The nation added a staggering 22 gigawatts (GW) of renewable energy capacity in the first half of the year 2025, which is a 57% rise compared to the previous year. The boom accounts for an addition of 18.4 GW of solar, 3.5 GW and 250 megawatts (MW) of bioenergy.

The government’s ambitious target of achieving 500 GW of renewable energy capacity in the year 2030 is the reflection of the nation’s pledge towards clean energy. Owing to progressive policy orientation and new-age technology, the nation will be well ahead of the target, if not surpass, this target.

Solar Energy: The Cornerstone of India’s Renewable Era

Solar energy is the flagship of the renewable energy policy of India. The nation’s vast geographical spread and high insolation make it the ideal possible destination for commercial-level utilization of solar. Schemes like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) will provide incentives to the use of solar energy by agricultural producers, in turn fueling the growth of the sector.

Furthermore, Government of India’s Production-Linked Incentive (PLI) scheme offered the players like Reliance, Adani, Tata Power Solar, and Waaree investment opportunities that helped decrease import dependence and increase the manufacturing competitiveness of India Soleos Solar Energy Private Limited.

renewable energy growth in india

Solar Energy: Harnessing the Power of the Breeze

Solar remains an important contributor in the Indian renewable energy mix. India is the world’s fourth largest in installed onshore Solar capacity with 52.14 GW installed and another 30.10 GW under commissioned status as of July 2025 Press Information Bureau.

The National Offshore Solar Energy Policy in the year 2015 offers guidelines for tapping Solar energy along the long Indian coastline, extending the possibilities of Solar energy generation even more.

Grid Modernisation and Energy Storage

One of the challenges associated with renewable energy is that renewable energy is intermittent. India is therefore investing significantly in energy storage technology as well as in modernisation of the grid. Energy storage solutions and hybrid system integration stabilise the system as well as allow for renewable energy penetration.

Intelligent grids utilizing digital technology to track and regulate the transmission of electricity are being installed in order to better the effectiveness and consistency of the electrical supply.

Green Hydrogen: The Fuel of the Future

Green hydrogen, which is generated from renewable energy sources, is becoming a clean alternative fuel from fossil fuel-based sectors in the field of transportation and industry. India is seeing the possibilities of green hydrogen in decarbonizing the hard-to-abate sectors as well as reducing imports from foreign fossil fuel-based countries.

The Government’s National Hydrogen Mission will support the use and production of green hydrogen and bring the country at the forefront of the new-age sector.

Decentralised Energy Systems: Rural Empowerment in India

Rural India is witnessing more usage of decentralized renewable energy systems such as rooftop solar and microgrids. These provide clean and cheap lighting along with other kinds of power to interior areas, improving the quality of life and fostering local economies.

State incentives via programs such as the PM-KUSUM and the National Bioenergy Programme are aiding the decentralized energy use.

importance of renewable energy

Policy Support and Investment

Indian authorities have implemented many policies favorable to renewable energy, like the Renewable Purchase Obligation (RPO), which requires that some of the end-utility power be from renewable energy. Policies like these create stable and predictable conditions that investors prefer.

April 2020-Sept 2024 saw the renewable energy sector in India experience $19.98 billion in Foreign Direct Investment (FDI), a testimony that investors have become increasingly confident in the renewable energy sector growth of the country.

Private Sector and Corporate Enrollment Role

The private sector is becoming increasingly critical in the Indian renewable energy landscape. Corporates are signing Corporate Power Purchase Agreements (PPAs) in renewable energy, therefore fueling demand and investment in the sector.

In the third quarter of the year 2024, the commercial and industrial sector in India commissioned 2,011 MW renewable capacity with the support of corporate PPAs and rooftop solar systems.

Challenges and the Way Ahead

Despite the stellar growth, there are some setbacks. Transmission infrastructure and land obstacles in the acquisition of the same can decelerate the expansion of renewable energy plans. For instance, in the State of Rajasthan, as high as 25% of renewable energy generated during peak hours is being lost due to inadequacies in the availability of inter-state transmission infrastructure.

Addressing these challenges requires coordination both at the central and the state levels, private sector involvement, and investment in the construction of infrastructures.

Driving Renewable Energy Growth in India

In the budding renewable energy sector, there are numerous players that are making profound impacts in the transition of India from traditional to sustainable energy. By deploying new-age technologies, building large-scale solar plants, and encouraging decentralized energy networks, the players are transforming the face of the renewable energy sphere and making clean energy accessible to urban as well as rural areas.

Increased emphasis on renewable energy alternatives, ranging from rooftop solar to hybrid power systems, underlines the necessity of convergence among governmental efforts and private sector capabilities. Firms are investing more in research and development, energy storage options, and green technology in order to provide efficient and timely energy supply.

Such events not only bring the renewable energy sector growth to the fore but also emphasize the significant role long-term planning, sustainability, and innovation play in enabling the country to meet its clean energy objectives. Initiatives like these pave the way for a greener and more energy-secure future, reflecting the importance of renewable energy in driving economic and environmental progress.

Conclusion

Renewable energy in the Indian future holds promise, with unprecedented advancements in capacity additions, technology development, and policy support. Despite the future challenges, the collective efforts of the Government, private sector, and civil society are clearing the way toward sustainable as well as an energy-secure future.

With India progressing on the path of green future, Hartek Group and other similar companies play an important role in propelling the renewable energy vision of the country forward. By combining innovation with deep industry expertise, the organization has positioned itself as a key contributor to shaping the country’s evolving energy landscape.

FAQ’s:-

Q1. What is driving renewable energy sector growth in India?
Government policies, private investments, solar expansion, and green hydrogen initiatives are the key drivers of renewable energy growth in India.
Q2. How much renewable energy capacity has India added recently?
In 2025, India added 22 GW of renewable energy capacity, including 18.4 GW solar and 3.5 GW Solar, marking a 57% growth over the previous year.
Q3. Why is solar energy important for India’s renewable energy growth?
Solar energy is the cornerstone of India’s renewable energy strategy due to its vast land availability, high solar radiation, and government incentives.
Q4. What role does green hydrogen play in India’s energy future?
Green hydrogen supports renewable energy sector growth by decarbonizing industries, reducing fossil fuel dependence, and advancing the National Hydrogen Mission.
Q5. What challenges affect renewable energy sector growth in India?
Key challenges include transmission infrastructure gaps, land acquisition issues, and intermittency of renewable sources, requiring policy and tech solutions.

Economy of Scale Holds Key to Renewable Energy Re-Manufacturing

Leveraging the ‘Make in India’ Campaign for Renewable Energy Growth

The renewable energy industry can draw a lot from the government’s flagship ‘Make in India’ campaign to bolster its prospects.

The Rise of Renewable Energy and Its Impact

With sustainability being the order of the day, manufacturers across the globe are increasingly developing more and more efficient ways of tapping renewable energy. Aimed at reducing dependence on fossil fuels, this welcome trend is contributing to clean energy competitiveness. Making giant leaps in the renewable energy sector, India, too, is at the heart of this transition.

India’s Renewable Energy Growth Trajectory

In 2016-17, the output of renewable power projects went up by 26 percent, making the Indian renewable energy sector the fastest-growing in the world. According to the National Resource Defense Council, more than 1 million full-time equivalent jobs will be created by the solar industry alone by 2022. This includes more than 2 lakh engineering jobs and over half a million skilled sector jobs. The wind sector, on the other hand, will help generate 1.9 lakh jobs in the next five years.

‘Make in India’ and Its Role in Renewable Energy

The renewable energy industry can draw a lot from the government’s flagship ‘Make in India’ campaign to bolster its prospects. Hartek Group, equipped with high-quality manpower to support the domestic solar and wind manufacturing markets, is helping India emerge as a global manufacturing powerhouse catering to all the needs of the renewable energy sector.

Opportunities for Domestic Manufacturers

The ambitious target of scaling up clean power production to 175 GW by 2022 will create massive opportunities for domestic manufacturers. To capitalize on this growth, manufacturers must innovate and adapt to market demands.

Innovation and Competitiveness in Solar Manufacturing

The future of the solar manufacturing business will depend on how Indian companies beat the competition through constant innovation, quality improvement, and marketing. Despite competition from Chinese manufacturers, India holds a massive market potential for solar panels.

Government Support and Policy Initiatives

Government Support and Policy Initiatives

To realize this potential, domestic manufacturers should prioritize clean energy strategies. The government can support this by offering:

  • Incentives and subsidies

  • Effective energy and solar skill development policies

  • Establishment of more module assessment labs

  • Encouragement for R&D initiatives

  • Reduction of procedural delays in executing projects

Challenges in Domestic Solar Manufacturing

Despite the immense scope, challenges remain. Lack of scale and an underdeveloped supply chain hinder growth. Flexible incentives and financing options, effective net metering policies, and anti-dumping duties on foreign solar module manufacturers are critical needs.

Strengthening India’s Solar Industry Competitiveness

To make the Indian solar industry globally competitive, the government should focus on a larger policy framework that supports domestic manufacturing plans. This will help India:

  • Control the solar supply value chain

  • Increase revenue and profitability

  • Address issues related to transport, infrastructure, taxation, and power outages

Building a Skilled Workforce

The government should create a skilled workforce by introducing solar manufacturing courses under the National Skill Development Mission. Supporting large-scale projects and fully integrated manufacturing plants under the ‘Make in India’ policies will be essential.

Economies of Scale and Cost Reduction

To achieve economies of scale, India must reduce manufacturing costs. This will enable strategic innovation and promote exports, boosting the overall competitiveness of the industry.

Global Trends and Manufacturing Clusters

The government should take cues from global trends by establishing integrated solar industrial clusters. This will foster better industry linkages, enhance manufacturing efficiency, and support innovation.

Impact of Global Competition

Some of India’s largest solar equipment manufacturers are facing financial losses due to competition from Chinese firms, which prioritize low-cost power over local manufacturing. Interestingly, prior to the National Solar Mission, Indian solar firms were focusing on OEM manufacturing and exports, generating billions in export revenues. However, with the entry of Chinese competitors, module prices fell sharply, resulting in a substantial market share loss for Indian companies.

Government Measures to Boost Domestic Manufacturing

To correct this imbalance, the government offers 20-25 percent capital subsidies and other incentives under the ‘Make in India’ campaign. The Viability Gap Funding (VGF) mechanism and GST relaxation (waiving 12% countervailing duty and 5% VAT on domestic solar components) aim to boost domestic solar production.

Future Growth Potential

According to government capacity targets, India’s annual solar module market could exceed $10 billion in the coming years. However, to avoid straining the power infrastructure, the government and industry must implement corrective measures.

Fostering a Sustainable Future

A ‘reduce, encourage, deregulate’ policy for power generation can benefit Indian manufacturing by ensuring cheap and readily available power. The government plans to spend Rs 210 billion ($3.1 billion) on India’s solar panel manufacturing industry, aiming to increase photovoltaic capacity and create an export-oriented sector.

India’s Renewable Energy Investment

In 2016, India accounted for 5 percent of the world’s renewable energy capacity, investing $9.7 billion (Rs 64,990 crore), according to the Renewables Global Status Report 2017 by REN21. Direct and indirect renewable energy jobs (excluding large hydropower) reached 8.3 million globally in 2016.

Challenges with Cheap Imports

Despite the growth, domestic manufacturers face challenges from cheap imports, with Indian firms accounting for only 13 percent of supply. The Indian Solar Manufacturers’ Association has called for safeguard duties on solar cells and modules.

Funding Challenges

Another issue plaguing Indian manufacturers is the lack of access to funding for building manufacturing units. Private banks remain hesitant to offer loans at attractive rates.

Favorable Government Policies

The government’s efforts, including DCR quota for government-based energy projects and financing support, have benefited domestic solar manufacturers. However, further support is needed.

Positive Outlook for Domestic Manufacturing

The Indian government is committed to supporting domestic manufacturing. Plans to release a new solar manufacturing policy with VGF subsidies will help Indian companies compete globally.

Solving Macro Challenges

To promote domestic manufacturing, India must address macro challenges such as:

  • Ease of doing business

  • Infrastructure development

  • Affordable financing

  • Reliable local raw material supply chains

Solving Macro Challenges

Promoting Private Investment

The Ministry of New and Renewable Energy encourages private investment by offering fiscal and financial incentives and allowing 100% foreign direct investment (FDI) in renewable energy.

Boosting Solar Inverter Industry

The solar inverter industry in India, still in its early stages, will expand as domestic solar module manufacturing strengthens.

Increasing Domestic Capacity

To meet annual solar targets, India must increase domestic manufacturing capacity. For reliable solar solutions, contact Hartek Group – your trusted partner in renewable energy. The DCR policy under the ‘Make in India’ plan supports this initiative, but more state-level mandates are needed to ensure sustainable growth.

FAQ’s:-

1. How does the ‘Make in India’ initiative support renewable energy?
The initiative boosts domestic solar and wind manufacturing through incentives, subsidies, and policy support.
2. What are the key challenges in India’s renewable energy sector?
Challenges include competition from imports, funding constraints, and infrastructure gaps affecting domestic manufacturing.
3. What government policies promote renewable energy in India?
Policies include Viability Gap Funding, GST relaxation, skill development programs, and incentives for domestic manufacturers.
4. How does renewable energy contribute to job creation in India?
The sector is projected to generate over 1 million jobs in solar and 1.9 lakh jobs in wind energy by 2022.
5. What is India’s target for renewable energy capacity?
India aims to scale up renewable power production to 175 GW by 2022, creating growth opportunities for manufacturers.