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India Achieves Historic Milestone in Renewable Energy Capacity Addition in FY25
K N Mishra
03/Apr/2025
What's covered under the Article:
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India added 25 GW of renewable energy capacity in FY25, marking a 35% increase from the previous year.
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Solar energy growth led the way, with India surpassing 100 GW of installed solar capacity in FY25.
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The government’s initiatives, including PLI Scheme and PM Surya Ghar Muft Bijli Yojana, contributed significantly to renewable energy growth.
India’s Ministry of New and Renewable Energy (MNRE) has achieved a landmark milestone in renewable energy capacity addition for FY25, under the leadership of Prime Minister Narendra Modi. In an ambitious move to boost clean energy production, India added an impressive 25 gigawatts (GW) of renewable energy capacity during the fiscal year, marking a 35% increase compared to the 18.57 GW added in FY24.
Solar Energy Leads the Charge in India’s Renewable Energy Growth
A significant portion of this growth was driven by the solar energy sector, with India’s solar capacity rising from 15 GW in FY24 to nearly 21 GW in FY25, reflecting a 38% increase. This surge in solar energy capacity helped India surpass the remarkable 100 GW mark in installed solar capacity, showcasing the country’s commitment to green energy.
India’s Solar Manufacturing Sector Booms
India’s solar manufacturing capacity has seen exponential growth, with the country’s solar module manufacturing capacity nearly doubling from 38 GW in March 2024 to 74 GW in March 2025. Additionally, India has tripled its solar photovoltaic (PV) cell manufacturing capacity, rising from 9 GW to 25 GW during the same period.
In FY25, India also witnessed the launch of its first 2 GW ingot-wafer manufacturing facility, marking another important step towards self-reliance in solar energy production. This development is part of India’s broader strategy to become a global leader in solar technology and reduce dependence on imports.
Government Initiatives to Support Renewable Energy Growth
Several government initiatives have played a crucial role in India’s renewable energy growth. One of the most notable programs is the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules, which has attracted investments worth Rs. 41,000 crore (US$ 4.8 billion). This scheme has not only boosted solar manufacturing in India but also generated direct employment for 11,650 individuals.
The PM Surya Ghar Muft Bijli Yojana has been another success story, benefiting over 11.01 lakh households by providing central financial assistance worth Rs. 5,437.20 crore (US$ 636.59 million) to 6.98 lakh beneficiaries.
Green Hydrogen and Other Key Initiatives
India has also made significant strides in the Green Hydrogen sector, allocating Rs. 2,220 crore (US$ 259.92 crore) for 1,500 MW of electrolyser manufacturing and Rs. 2,239 crore (US$ 262.14 million) for the production of 4,50,000 tons per annum of Green Hydrogen. This move aligns with India’s goal of becoming a global leader in clean hydrogen production and achieving net-zero emissions.
The PM-KUSUM Scheme has been instrumental in solarising irrigation systems, with 4.4 lakh pumps installed under Component B and 2.6 lakh solarised under Component C. This scheme contributes to sustainable farming and reduces dependence on traditional energy sources.
IREDA Financing and Sector Growth
The Indian Renewable Energy Development Agency (IREDA) has played an essential role in financing renewable energy projects. In FY25, IREDA sanctioned Rs. 47,453 crore (US$ 5.56 billion) in loans, marking a 27% increase from the previous year. Additionally, disbursements rose by 20%, amounting to Rs. 30,168 crore (US$ 3.53 billion). These financial initiatives have been crucial in supporting the growth of India’s renewable energy sector and accelerating its transition towards cleaner energy solutions.
Conclusion: A Bright Future for India’s Renewable Energy Sector
India’s achievement of adding 25 GW of renewable energy capacity in FY25 marks a significant step in the country’s journey towards achieving energy security and a sustainable future. With continued government support, the exponential growth of the solar and Green Hydrogen sectors, and substantial investments in renewable energy infrastructure, India is poised to lead the world in the transition to clean energy. As the country continues to increase its renewable energy capacity, India’s energy sector is moving closer to realizing its goal of a sustainable, low-carbon economy.