What Happened
- Infomerics Ratings projected that renewable energy will account for 26% of India's total power generation by the end of FY2026 (March 2026)
- Electricity demand grew at a strong CAGR of 7-8% from FY21 to FY25, aligning with average GDP growth of about 8% during that period
- RE capacity additions touched a record 49 GW in the first nine months of FY2026
- Renewable energy accounts for nearly 64% of incremental electricity generation growth during 9M FY26
- The agency projects that renewables, led by solar, will account for 59% of total installed capacity by FY2032
Static Topic Bridges
India's Renewable Energy Targets and NDC Commitments
India's renewable energy expansion is driven by its Nationally Determined Contribution (NDC) under the Paris Agreement. India's updated NDC (August 2022) commits to achieving 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030 and reducing emissions intensity of GDP by 45% by 2030 (from 2005 levels). The 500 GW non-fossil fuel capacity target by 2030 is the operational benchmark. India achieved a landmark milestone in June 2025 when non-fossil fuel sources crossed 50% of total installed capacity — more than five years ahead of the NDC target.
- India's updated NDC (August 2022): 50% non-fossil fuel capacity by 2030; 45% emissions intensity reduction by 2030 (from 2005 base)
- 500 GW non-fossil fuel target by 2030 (from 175 GW by 2022 — the earlier target)
- Non-fossil fuel capacity as of June 2025: 242.8 GW (50.07% of total 484.82 GW) — target met 5 years early
- Net-Zero by 2070: Announced by PM Modi at COP26 (Glasgow, November 2021)
- India is the 3rd largest energy consumer and 3rd largest RE market globally
- International Solar Alliance (ISA): Co-founded by India and France in 2015 at COP21; HQ in Gurugram
Connection to this news: The 26% generation share by March 2026 is significant because installed capacity (where India has already crossed 50% non-fossil) does not equal generation share — solar and wind have lower capacity utilisation factors (20-25%) compared to coal (60-70%), making the 26% generation milestone harder to achieve.
Solar and Wind Energy — Capacity and Growth Trajectory
India's solar energy installed capacity reached 132.85 GW by November 2025 (41% year-on-year growth from 94.17 GW in November 2024), making solar the fastest-growing energy source. Wind energy capacity reached 53.99 GW (12.5% growth from 47.96 GW). The year 2025 saw the highest-ever RE capacity addition, with 44.51 GW added through November — nearly double the 24.72 GW added in the corresponding period of the previous year.
- Solar installed capacity: 132.85 GW (November 2025); 41% YoY growth
- Wind installed capacity: 53.99 GW (November 2025); 12.5% YoY growth
- Total RE capacity (including large hydro): ~233 GW (November 2025)
- India crossed 100 GW solar milestone in January 2025
- India crossed 50 GW wind milestone in March 2025
- Top solar states: Rajasthan, Gujarat, Karnataka, Tamil Nadu
- Top wind states: Tamil Nadu, Gujarat, Karnataka, Maharashtra, Rajasthan
- Solar tariffs: Fallen to record low of Rs 1.99/kWh (competitive with coal-based power at Rs 3-5/kWh)
Connection to this news: The record 49 GW RE capacity addition in 9M FY2026 is dominated by solar, reflecting India's solar-led decarbonisation strategy and the dramatic cost decline that has made solar cheaper than new coal power in most regions.
Energy Transition and Coal Dependence — The Balancing Act
Despite rapid RE growth, India remains heavily dependent on coal, which accounts for approximately 50% of total installed capacity and over 70% of electricity generation. The gap between installed capacity share and generation share exists because solar and wind are variable (intermittent) sources with capacity utilisation factors (CUF) of 20-25%, while coal plants operate at 60-70% plant load factor (PLF). India's energy transition must balance decarbonisation with energy security for a growing economy.
- Coal share: ~50% of installed capacity but ~73% of electricity generation (FY2025)
- RE share: ~45% of installed capacity but ~26% of generation (projected FY2026)
- Capacity Utilisation Factor: Solar ~22-25%, Wind ~25-30%, Coal PLF ~65-70%
- Energy storage: Critical for managing RE intermittency; National Framework for Promoting Energy Storage Systems (2023)
- Battery storage target: 51.5 GWh by 2031-32 under Central Electricity Authority projections
- Green hydrogen: National Green Hydrogen Mission (Rs 19,744 crore, January 2023) — targets 5 MMT annual production by 2030
- India is the world's 2nd largest coal consumer and 3rd largest coal producer
Connection to this news: The Infomerics projection of 26% RE generation share — while celebrating progress — also highlights that coal still generates nearly three-quarters of India's electricity, underscoring the long road ahead for India's energy transition.
Key Facts & Data
- RE generation share projected: 26% by March 2026 (FY2026-end)
- RE capacity additions: Record 49 GW in 9M FY2026 (nearly double previous year)
- Solar capacity: 132.85 GW (November 2025); crossed 100 GW in January 2025
- Wind capacity: 53.99 GW (November 2025); crossed 50 GW in March 2025
- Non-fossil fuel share: 50.07% of installed capacity achieved in June 2025 — 5 years ahead of NDC target
- India's 500 GW non-fossil fuel target by 2030
- Net-Zero target: 2070 (announced COP26, Glasgow, 2021)
- Solar tariff record low: Rs 1.99/kWh
- Coal generates ~73% of India's electricity despite being ~50% of installed capacity
- Electricity demand CAGR: 7-8% (FY21-FY25)