Green Energy and India’s Solar Leap: What’s Next After Surpassing 200 GW?

India has achieved a significant milestone in its green energy journey by surpassing 200 gigawatts (GW) of installed renewable energy capacity in 2024. For the first time, renewable energy now exceeds thermal (coal-based) capacity, reflecting a major pivot in India’s power sector. According to the Central Electricity Authority (CEA), renewable sources now account for over 44% of total installed power capacity. This shift not only aligns with India’s climate goals but also positions the country among the global leaders in clean energy development.

How India Crossed the 200 GW Milestone

India’s renewable energy portfolio includes 80+ GW from solar, 45 GW from wind, 47 GW from large hydro and smaller shares from bioenergy and small hydro projects. This rapid growth is the result of long-term policy focus and public-private coordination. Initiatives such as the National Solar Mission, Renewable Energy Development Agency schemes and the Production Linked Incentive (PLI) program for solar manufacturing have incentivized large-scale adoption.

In recent years, India’s renewable capacity additions have consistently outpaced fossil fuel-based expansions. The Bhadla Solar Park in Rajasthan and Rewa Ultra Mega Solar Park in Madhya Pradesh stand out as shining examples of large-scale project execution. The rooftop solar segment, especially in urban commercial zones and government buildings, has also seen growth, now accounting for more than 11 GW of capacity.

Drivers Behind India’s Solar Surge

India’s solar energy sector has witnessed a remarkable transformation over the past decade. In 2014, the country had just over 3 GW of installed solar capacity; today, that number has crossed 80 GW and continues to grow rapidly. This dramatic expansion has been fueled by several key factors. One of the most significant is the sharp decline in solar module prices, which have dropped by more than 80% in the last ten years, making solar power increasingly affordable. In addition, strong policy support and long-term power purchase agreements (PPAs) have provided investors with the confidence and financial predictability needed to commit to large-scale solar projects. International cooperation has also played a vital role, with bilateral funding arrangements and technology transfers accelerating project implementation and innovation. Investor interest has surged, with clean energy foreign direct investment (FDI) in India exceeding $15 billion in 2024 alone. As a result, India has emerged as a global leader in auction-based pricing, achieving some of the lowest solar tariffs worldwide, ₹1.99 per kWh in some cases, further enhancing the attractiveness of both utility-scale and decentralized solar systems across the country.

Challenges That Still Lie Ahead

While the progress is impressive, key challenges need addressing. Solar and wind energy are intermittent, which makes grid balancing and storage essential. India’s storage capacity, though growing, remains limited. The Solar Energy Corporation of India (SECI) is launching bids for solar-plus-storage projects, but high costs and technological readiness are hurdles.

India is also heavily reliant on imported solar modules, particularly from China. While the PLI scheme aims to boost local manufacturing, capacity needs to be scaled rapidly. Another structural issue is the financial instability of DISCOMs, which impacts timely payments to renewable energy developers and undermines investment confidence.

Land acquisition and transmission infrastructure are also bottlenecks, especially for large-scale solar parks in remote areas. Coordination between central and state authorities, along with digital smart grid upgrades, is necessary to manage growing decentralized capacity.

The Road to 500 GW: What’s Next

India’s next big goal is 500 GW of non-fossil fuel capacity by 2030, which includes solar, wind, hydro and nuclear. Achieving this will require adding 30–40 GW annually, nearly double the current average. The government is also advancing into new sectors like offshore wind (with potential projects off Gujarat and Tamil Nadu) and green hydrogen, supported under the National Green Hydrogen Mission.

Decentralized solar will be crucial. The PM-KUSUM scheme is driving the solarization of agriculture by promoting solar pumps and mini-grids in rural areas. These not only reduce emissions but also improve energy access and farmer livelihoods.

At the global level, India continues to lead the International Solar Alliance (ISA) and is helping other developing nations adopt solar through training, finance and technology transfer. These efforts align with SDG 7 which is about ensuring access to affordable, reliable, sustainable and modern energy for all.

Conclusion: Building on Momentum

Crossing the 200 GW threshold is a proud milestone for India, but it is also just the beginning. The path forward requires more megawatts, smarter planning, robust infrastructure and inclusive policies. Addressing challenges like storage, domestic manufacturing and DISCOM reform will be critical. With continued innovation, international collaboration and strong political will, India is well-positioned to become a global powerhouse in green energy. The journey beyond 200 GW will define not just India’s energy future, but its contribution to the global climate transition.

References

Walia, A. (2025, July 16). India’s “green” power capacity overtakes thermal: Why it matters, the challenges posed and what’s next. The Indian Express. https://indianexpress.com/article/business/indias-green-power-capacity-overtakes-thermal-10129592/

Shetty, S. (2025, January 3). The Solar Week Malaysia 2025: Conference & Awards. SolarQuarter. https://solarquarter.com/2025/01/03/a-sustainable-leap-indias-renewable-energy-achievements-in-2024/

India Achieves Historic Milestone of 100 GW Solar Power Capacity. (2025). Pib.gov.in. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2100603

ET EnergyWorld. (2025, July 21). India’s record renewables rollout moves it closer to 2030 goal. ETEnergyworld.com; Bloomberg. https://energy.economictimes.indiatimes.com/news/renewable/india-accelerates-renewable-energy-expansion-22-gw-added-in-2025/122813004

India’s Solar Power Boom: How Renewable Energy is Shaping a Sustainable Future. Solarsmart. https://solarsmart.co.in/indias-solar-power-boom-leap-towards-sustainable-future/