India Renewable Energy Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report 2026-2030

India's renewable energy market encompasses solar, wind, bioenergy, and small hydro power generation across the country, positioning it as one of the world's largest clean energy markets. The sector has experienced significant expansion as the government pursues its commitment to achieving 500 GW of non-fossil fuel capacity by 2030, with current installed renewable capacity exceeding 180 GW. Market development is supported by a combination of policy incentives, declining equipment costs, and growing domestic and international investment flows into clean energy infrastructure.

• •Installed renewable energy capacity surpassed 180 GW as of 2024, with solar representing the largest share at over 70 GW
• •India ranks fourth globally in wind power capacity and fifth in solar power deployment
• •The sector attracted over $15 billion in foreign direct investment between 2014 and 2024

Government policy frameworks provide the primary catalyst for market expansion, including aggressive renewable purchase obligations, tax incentives, and the Production Linked Incentive scheme for domestic solar manufacturing. Plummeting costs of solar panels and wind turbines have improved project economics, while rising electricity demand from industry, data centers, and electrification initiatives creates sustained offtake opportunities. Additionally, corporate sustainability commitments and growing consumer preference for green energy through open access and rooftop solar schemes continue to accelerate adoption rates across urban and rural markets.

• •Solar module costs have declined by over 80% in the past decade, making utility-scale solar competitive with coal-based power
• •PLI scheme for solar manufacturing allocates $3 billion to boost domestic production and reduce import dependence
• •Corporate renewable energy procurement exceeded 10 GW in 2023-24 through open access and bilateral agreements

Solar photovoltaic dominates the market segmentation with approximately 55% of total renewable capacity, followed by wind power at roughly 30%, with bioenergy and small hydro projects accounting for the remainder. Rajasthan, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh represent the top five states by installed renewable capacity, collectively hosting over 60% of India's clean energy assets. Regional variations in solar irradiation levels, wind speeds, and state-level policy support create distinct investment landscapes, with western and southern states leading in solar deployment while Tamil Nadu and Gujarat remain dominant in wind power generation.

• •Rajasthan leads in solar capacity with over 17 GW, followed by Karnataka with approximately 9 GW
• •Tamil Nadu accounts for the largest share of wind power at approximately 9.5 GW
• •Gujarat hosts significant hybrid renewable projects combining solar and wind capacity

What are the recent trends and outlook?

Emerging trends indicate a shift toward larger renewable energy tenders, hybrid renewable-cum-storage projects, and increased focus on green hydrogen production linked to renewable generation. Floating solar, agri-voltaics, and offshore wind are gaining regulatory attention as next-generation opportunities, while grid integration challenges are driving investment in battery energy storage systems and smart grid technologies. The market is expected to require approximately $500 billion in investment by 2030 to meet national targets, with ongoing policy support and falling storage costs expected to sustain double-digit growth through the forecast period.

• •Battery storage tenders exceeding 4 GWh have been announced to address renewable intermittability and grid stability
• •Green hydrogen production linked to renewable energy projects is emerging as a major industrial opportunity
• •Rooftop solar adoption is projected to reach 40 GW by 2026 under the Grid Connected Rooftop Solar Programme