In a significant milestone for India’s renewable energy sector, the country has officially overtaken Japan to become the world's third-largest solar energy generator, according to the latest figures released by the International Renewable Energy Agency (IRENA). The announcement was made public by Union Minister of New and Renewable Energy, Mr. Pralhad Joshi, on August 1, 2025, via a post on social media platform X.

As per IRENA’s data, India generated 1,08,494 gigawatt-hours (GWh) of solar energy, surpassing Japan’s 96,459 GWh, thus earning the third position on the global solar energy leaderboard. The data reflects not just an improvement in capacity but a consistent and committed approach toward renewable energy adoption in India over the past decade.

India’s Rising Solar Power Status

This achievement signifies a major leap in India’s clean energy journey and strengthens its status as a global leader in sustainable energy. India is now behind only China and the United States in solar energy generation, underscoring its place among the world's top renewable energy nations.

Minister Pralhad Joshi highlighted that this growth in solar energy was part of India’s comprehensive strategy to achieve its 2030 goal of installing 500 GW of non-fossil fuel electricity capacity. He praised the "visionary leadership" of Prime Minister Narendra Modi, under whom India's energy landscape has undergone a revolutionary transformation.

Joshi stated that India is now “leading the way in the global clean energy revolution,” attributing the nation’s progress to policy innovation, aggressive capacity building, investment support, and strategic international collaboration.

IRENA’s Role and Data Significance

The statistics released were based on the 2025 IRENA renewable energy data repository, which tracks global energy production and provides insights into clean energy trends. IRENA, a global intergovernmental organisation, plays a pivotal role in assisting countries through their energy transitions, offering not only statistics but also guidance on policies, financing mechanisms, and innovative technologies.

India’s climb to the third position is not just symbolic but reflective of a ground-level energy transition that has included:

• Rapid solar panel deployment across both rural and urban areas.

• Major infrastructure projects under schemes such as PM-KUSUM, National Solar Mission, and Solar Parks Programme.

• Expanding use of solar energy in public buildings, metro systems, and industrial applications.

A Multi-Pronged Energy Strategy

India’s approach to increasing renewable capacity is multi-faceted, combining solar, wind, hydro, and bioenergy to form a holistic energy matrix. Of this, solar energy has emerged as the most rapidly growing sector, owing to:

• Declining costs of photovoltaic technology.

• Favorable policy frameworks like accelerated depreciation and Viability Gap Funding (VGF).

• Enhanced private sector participation and increasing investments from domestic and foreign players.

India’s 500 GW target by 2030 includes around 280 GW from solar energy alone, making it the centerpiece of the national green energy agenda.

International and Domestic Implications

India’s new ranking comes at a time when global climate policies are under increased scrutiny. As the world moves towards the UN’s Sustainable Development Goals (SDGs) and the Paris Agreement targets, India's progress offers a scalable model for other developing nations.

On the domestic front, the solar push contributes to:

• Energy security, reducing dependence on imported fossil fuels.

• Employment generation, especially in rural areas where solar installations and maintenance offer local job opportunities.

• Improved air quality and public health, especially in urban centers where energy demand is surging.

Furthermore, India’s solar sector has become a magnet for global capital, with billions flowing into solar manufacturing, grid development, and storage systems. The upcoming PLI (Production Linked Incentive) schemes and investments in battery storage are expected to further boost the sector.

The Modi Government’s Role in Energy Transformation

Since 2014, under Prime Minister Narendra Modi, India’s renewable energy capacity has grown more than fourfold. From a nascent sector, solar energy has transformed into a pillar of national development, with the government focusing on:

• Establishing international partnerships, including ISA (International Solar Alliance).

• Launching innovative campaigns like One Sun One World One Grid.

• Strengthening grid infrastructure through Green Energy Corridors.

The Modi administration’s policy consistency, long-term vision, and focus on sustainable development have made India’s energy transition both impactful and globally respected.

Challenges and the Road Ahead

Despite these achievements, several challenges remain. Grid integration, land acquisition for solar parks, and maintaining financial health of DISCOMs (distribution companies) are areas that need ongoing attention. Additionally, there is a rising need for robust solar storage solutions and domestic manufacturing of solar components, including solar cells, modules, and wafers, to reduce dependency on imports.

India is now focusing on:

• Hybrid solar-wind systems.

• Floating solar plants.

• Enhanced R&D in solar efficiency and grid resilience.

The Ministry of New and Renewable Energy (MNRE) is also exploring models that combine solar power with green hydrogen, electric mobility, and smart grids, paving the way for a next-generation renewable ecosystem.

Final Word

India’s emergence as the third-largest solar energy generator globally is not just a number—it is a testament to its sustainable development model, energy transition policy, and strategic foresight. As India races towards its 500 GW non-fossil target, this achievement will serve as both a motivational milestone and a global signal of its capability and commitment.

With continued innovation, investments, and inclusive policy execution, India is set to not only meet but possibly exceed its clean energy targets, thereby securing its place as a leader in the global renewable energy revolution.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.