From 2020 to 2025, India's renewable energy sector experienced significant growth, contributing to both the country's energy security and economic development

 From 2020 to 2025, India's renewable energy sector experienced significant growth, contributing to both the country's energy security and economic development. Key developments included a substantial increase in installed renewable energy capacity, attracting substantial foreign investment, and a decline in the cost of renewable energy technologies like solar power. 

Key Highlights:

Capacity Growth:

India's installed renewable energy capacity surged from 76.37 GW in March 2014 to 226.79 GW in June 2025, according to the PIB. This represents a nearly threefold increase in just over a decade, according to the PIB. 

Shift in Electricity Generation:

Renewable energy's share in total power generation increased from 17.20% in 2014-15 to around 22.20% in 2024-25, according to the PIB. 

Dominance in Capacity Additions:

Solar, coal, and wind power were the primary drivers of this growth, with solar power capacity surpassing 100 GW in January 2025 according to the PIB. 

Cost Reduction in Solar Power:

Solar tariffs have significantly decreased, making solar power with battery storage potentially cheaper than thermal power. 

Investment Boom:

India attracted substantial foreign direct investment (FDI) in the clean energy sector, with over Rs. 1,60,000 crore (US$ 18.60 billion) in cumulative FDI inflows since 2020, according to IBEF. 

Job Creation:

The renewable energy sector is a major source of employment, with the sector employing over 10 million people in 2023, according to IBEF. 

Government Initiatives:

The government launched initiatives like the PM Surya Ghar: Muft Bijli Yojana to promote rooftop solar installations and support the transition to clean energy. 

Challenges:

Despite the progress, challenges remain in areas like the financial health of distribution companies and the need for adequate transmission infrastructure. 

Overall Impact:

The growth of renewable energy in India has contributed to energy security, reduced carbon emissions, and stimulated economic growth by attracting investments and creating jobs. The sector's continued expansion is crucial for India to meet its climate goals and achieve sustainable development.