India Emerges as World’s Second-Fastest Growing Solar Power Market

Installed solar capacity rises to 162 GW as renewable energy push gathers pace

New Delhi, Aug 3: India has become the world’s second-fastest growing solar energy market after adding 37 GW of new solar capacity in 2025, overtaking the United States, according to a government factsheet.

The country’s installed solar power capacity has expanded nearly fifty-fold—from just 3 GW in 2014 to 162.15 GW as on June 30, 2026—reflecting India’s rapid transition towards clean energy, energy security and sustainable growth.

The government attributed this remarkable growth to policy reforms and a sharp decline in solar tariffs driven by the e-Reverse Auction mechanism. Increased competition among developers has brought tariffs down from nearly ₹18 per unit in 2010 to a record low of ₹2.44 per unit, making solar power one of the most affordable sources of electricity in the country.

In 2025, the Levelised Cost of Electricity (LCOE) for utility-scale solar photovoltaic projects in India stood at $35 per MWh, significantly below the global average of $44 per MWh, further strengthening India’s attractiveness for renewable energy investments.

The sector has received an additional boost with the approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on July 31, 2026. The ₹5,070-crore scheme aims to establish 5,000 MW of floating solar photovoltaic projects integrated with Energy Storage Systems (ESS) having a minimum storage capacity of 10,000 MWh.

The initiative seeks to utilise reservoirs and industrial water bodies for solar generation, thereby reducing pressure on land resources, improving grid stability and helping States meet peak electricity demand.

Large-scale projects such as the Bhadla Solar Park, Pavagada Solar Park and Rewa Ultra Mega Solar Park continue to play a key role in expanding India’s renewable energy capacity.

The government’s factsheet also noted that India’s total non-fossil fuel power capacity has reached 283.46 GW, including 274.68 GW from renewable sources. On July 29, 2025, renewable energy met a record 51.5 per cent of the country’s electricity demand.

These achievements are in line with India’s Panchamrit commitments announced at COP26, including the target of achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero carbon emissions by 2070.

Backed by sustained policy support, falling generation costs and rapid capacity additions, India is consolidating its position as one of the world’s leading clean energy economies and a major force in the global renewable energy transition.