Solar segment is expected to remain the key driver of growth
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India’s renewable energy sector witnessed its highest-ever capacity addition in FY25, driven predominantly by solar, which contributed 83 per cent of the new installations. The total capacity added during the year stood at 28.7 GW across all segments —significantly higher than the 18.5 GW added in FY23.
According to data from the Union Ministry of New and Renewable Energy, the solar segment — including ground-mounted, rooftop, hybrid, and off-grid installations — added 23.8 GW in FY25, up from 15 GW in the previous fiscal year.
Analysts at Kotak Institutional Equities described FY25 as a record-breaking year for solar additions and projected continued momentum in the coming years. With India targeting 500 GW of total renewable energy capacity, including nearly 300 GW from solar alone, they expect the solar segment to remain a key driver of growth. Most of FY25’s solar additions came from ground-mounted and rooftop projects.
Rajasthan leads States
Last week, Union Minister for New and Renewable Energy, Pralhad Joshi, remarked that India may have already become—or is poised to become—the world’s third-largest country in terms of installed renewable energy capacity.
Among the States, Rajasthan led solar capacity additions with 6.9 GW, followed by Gujarat (4.95 GW) and Maharashtra (4.4 GW). Tamil Nadu added close to 2 GW during the year, pushing its total installed solar capacity past the 10-GW mark.
The wind energy segment added around 4.2 GW in FY25, an improvement over the 3.3 GW added in FY24, taking the total installed wind capacity to 50 GW. Karnataka led the segment with 1.3 GW in new additions, followed by Tamil Nadu with 1.1 GW.
Hybrid projects
As of March 2025, India’s total cumulative renewable energy capacity reached 172 GW. Solar accounted for the largest share, with 106 GW, comprising 81 GW from ground-mounted projects, 17 GW rooftop installations, 2.87 GW of hybrid systems, and 4.74 GW (4.5 per cent) from off-grid solar.
In March 2025 alone, approximately 5,587 MW of renewable energy capacity was allocated to various developers. Wind-solar hybrid projects accounted for 50 per cent of this, followed by solar at 40 per cent, wind at 5.6 per cent, and standalone storage at 4 per cent. Additionally, around 5,100 MW of renewable energy tenders were issued across India during the month, according to JMK Research.
Published on April 9, 2025
