India Renewable Energy Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

India Renewable Energy Market Trends and Insights

Falling LCOE of Solar PV & Wind

Record solar tariffs of INR 2.51/kWh have been achieved on the back of PLI-supported module production and technology gains, reducing import dependence from 90% in 2020 to below 60% in 2025. Wind’s cost trajectory is similar, though slower, yet 25.4 GW of repowering potential for sub-2 MW turbines offers further cost optimization. The merging of solar, wind, and coal cost curves has reached a tipping point where renewable additions are now the default choice for new capacity.

Aggressive Central & State-Level RE Auctions

Solar Energy Corporation of India (SECI) and state agencies issued 7.6 GW of tenders in H1 2024, 191% higher year-on-year, while evolving bid structures now require storage and domestic content to enhance grid integration.^{[2]Solar Energy Corporation of India, “Bid Documents and Auction Results,” seci.co.in} Visibility of 132.7 GW of projects through 2026 gives developers confidence to expand manufacturing and project pipelines.

Renewable Purchase Obligations & ESCerts Enforcement

A 43% Renewable Purchase Obligation (RPO) for 2030 anchors demand, yet uneven state compliance indicates room for policy tightening. New carbon trading rules due in 2026 are expected to create parallel demand for clean power certificates.

Surge in Green-Power PPAs from C&I Off-takers

Commercial and Industrial renewable procurement is booming as corporates view clean power as both a cost hedge and a sustainability lever. Fourth Partner Energy, for example, raised USD 275 million to deliver 3.5 GW to global customers such as Walmart and Unilever. Streamlined open-access rules and forthcoming virtual PPA frameworks are set to further accelerate uptake.

DISCOM Financial Stress & Payment Delays

Distribution losses above 20% in several states continue to erode DISCOM liquidity, delaying payments and discouraging new projects despite payment-security mechanisms.^{[3]Policy Circle, “DISCOM Financial Health Review,” policycircle.org} Structural reforms in tariff setting and subsidy rationalization remain essential.

Land-Acquisition & Right-of-Way Bottlenecks

Competition with agriculture and conservation areas slows project timelines. Supreme Court directives on Great Indian Bustard habitats initially stalled Rajasthan and Gujarat projects before revised guidelines restored clarity.

Segment Analysis

By Technology: Manufacturing Surge Anchors Solar Dominance

Solar Energy’s 46.6% share in 2024 is rooted in the rapid scale-up of domestic factories to 38 GW of modules a year, slashing logistics delays and supporting auctions below thermal parity. The segment’s contribution to the India renewable energy market size is set to widen as utility parks in Rajasthan and Gujarat routinely clear bids near INR 2.5 per kWh, prompting coal retirements across northern load centers. Rooftop solar crossed 11 GW on residential incentives, though net-metering disputes still curb adoption. CSP remains a niche at just 0.5 GW, given its premium capex.

Wind capacity growth is slower because domestic nacelle lines cover barely 40% of annual demand, forcing import reliance. Onshore bids in Tamil Nadu at INR 2.79 per kWh keep the resource competitive, but land and right-of-way hurdles delayed 2.8 GW of awarded projects in 2024. Offshore wind blocks totaling 37 GW have been demarcated off Gujarat and Tamil Nadu, yet environmental reviews extend the first power past 2028. Hydropower stands at 51 GW, with pumped-storage retrofits adding long-duration flexibility, but seven-year build times dampen its near-term impact. Geothermal, though tiny today, shows the fastest growth trajectory as Ladakh pilots head for the demonstration stage. Bioenergy and ocean technologies remain experimental and account for marginal volumes.

Note: Segment shares of all individual segments available upon report purchase

By End-Use Sector: Corporate Procurement Reshapes Market Dynamics

Utilities still purchase 90.8% of renewable output under 15-to-20-year PPAs that anchor most project finance, yet payment delays and rising RPO compliance costs are squeezing their balance sheets. Falling tariffs allow state agencies to add 19 GW of capacity awards in fiscal 2024-25, but the India renewable energy market is witnessing a tilt as commercial-and-industrial buyers sign direct PPAs to cut Scope 2 emissions. The C&I tranche is compounding at 18.8% a year and now pursues group-captive models that pool smaller loads, spurring third-party developers to roll out zero-capex offers.

Industrial clusters in Maharashtra, Gujarat, and Karnataka signed 9.2 GW of PPAs in 2024, exploiting wheeling charges below INR 0.50 per kWh. Rooftop schemes for residences account for barely 1.2% of capacity, in part because net-metering credits often sit well under retail tariffs, elongating payback to almost a decade. Upcoming policy tweaks aim to shift DISCOMs toward a wires-only role, letting them earn on wheeling rather than volumetric sales, which could unlock more distributed generation in housing and small business segments.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Rajasthan leads the India renewable energy market with 29.98 GW installed in 2024, followed by Gujarat at 29.52 GW, Tamil Nadu at 23.70 GW, and Karnataka at 22.37 GW. Combined, these four states hold more than half of the national capacity. Concentration enhances scale economies and strains existing corridors, prompting a USD 500 billion grid-upgrade roadmap to FY 2050.^{[4]Financial Express, “USD 500 Billion Grid Investment Need,” financialexpress.com}

Karnataka and Gujarat rank highest on power-transition readiness, balancing high variable generation with stable networks, while Uttar Pradesh and West Bengal remain fossil-dominant. The India renewable energy market size for emerging hubs such as Madhya Pradesh is set to accelerate as NTPC earmarks INR 2 lakh crore for new solar, wind, and pumped-hydro assets.

Northeastern states receive 50% capital grants for renewables to offset terrain-related costs, yet logistical hurdles limit deployment. Manufacturing concentration in Gujarat, Tamil Nadu, and Rajasthan streamlines supply chains but creates regional risk; policymakers are exploring incentives for new factories in central and eastern India. Ultra-Mega Renewable Energy Parks planned in less-developed regions aim to spread capacity growth and reduce over-reliance on a handful of states.