India attracted $11.8 billion in renewable energy investments in the first half of 2025, according to the Institute for Energy Economics and Financial Analysis (IEEFA). The figure is the second-highest half-year inflow on record, underscoring the country’s accelerating pivot to clean power. Solar energy alone captured 77 per cent of the inflows, a reflection of its scale and the steady returns promised by government auctions.
“Solar has emerged as the lowest-cost and most bankable option for India’s energy transition,” said Vibhuti Garg, South Asia Director at IEEFA. “Investor appetite is strong because policy and revenue frameworks are increasingly predictable.”
The government awarded 59 GW of renewable capacity in 2024, much of it solar, and plans to double capacity by 2030. Utility-scale projects dominate, supported by 25-year power purchase agreements that provide revenue security. Investors such as Brookfield, Actis, and Adani Green have been aggressively bidding in auctions, with tariffs now averaging around ₹2.5 per kWh.
The sector is also moving towards hybrid models—solar, wind, and storage combinations—that stabilise supply and address intermittency challenges. “The next phase is not just scale, but reliability,” said a senior official at the Ministry of New and Renewable Energy.
Domestic manufacturing of photovoltaic modules, spurred by production-linked incentives, is expanding capacity to more than 50 GW annually by 2026. Analysts say this will reduce import dependence and improve supply security.
With financing costs easing and global investors chasing ESG-aligned assets, solar’s dominance appears secure. The sector’s trajectory aligns with India’s pledge to source half of its electricity from non-fossil fuel sources by 2030.