A Green Revolution: India’s Renewable Energy Sector Soars to New Heights solar now cheaper than coal

India’s renewable energy sector has achieved unprecedented growth, with capacity additions rising 420% year-on-year in June 2025. Solar energy capacity soared by 4,000% over the past decade, while wind energy grew 140%. Solar tariffs dropped 80%, making renewables cost-effective. The sector attracted $9.8 billion in Q1 2025 and over ₹1.6 lakh crore in foreign investments since 2020. Projects like Ahmedabad’s waste-to-energy plant highlight sustainability and inclusivity, positioning India as a global leader in clean energy innovation and development.

India's renewable energy landscape is undergoing an extraordinary transformation, with record-breaking growth and global recognition setting the stage for a sustainable future. In June 2025, the nation's capacity addition in renewable energy surged by an astonishing 420% year-on-year, expanding from a modest 1.4 GW in June 2024 to an impressive 7.3 GW. Union Minister for New and Renewable Energy, Prahlad Joshi, shared these milestones during the IVCA Renewable Energy Summit held in Mumbai earlier this week.

A Decade of Remarkable Growth in Solar and Wind Energy

India’s renewable energy journey has been nothing short of revolutionary. Over the past decade, solar energy capacity has skyrocketed by a phenomenal 4,000%, leaping from just 2.82 GW to an unprecedented 117 GW by 2025. Wind energy, another cornerstone of India’s green transition, has also demonstrated significant progress. Capacity in this sector rose by 140%, growing from 21 GW to 51.7 GW over the same period.

This growth has been accompanied by a significant reduction in costs, particularly in solar energy. Solar tariffs have dropped by 80%, from ₹10.95 per unit in 2010-11 to just ₹2.15 per unit today. Joshi highlighted that even solar energy combined with battery storage now offers a more affordable option than traditional thermal power. Such cost efficiencies have made renewables a dominant force in the power sector, commanding 83% of energy investments in 2024 alone.

Attracting Global Investment and Driving Financial Returns

India’s renewable energy sector has emerged as a magnet for global finance. The country secured $2.4 billion in international energy development funding in 2024, making it the largest recipient of such investments worldwide. Since 2020, foreign direct investment (FDI) in clean energy has exceeded ₹1.6 lakh crore, with ₹42,000 crore flowing into the sector in 2023. The momentum continued into 2025, with clean energy investments reaching $9.8 billion in the first quarter alone—a remarkable 7.7-fold increase compared to the same period last year.

Joshi underscored the financial benefits for investors, pointing out the multiple returns already realized by early backers of India's energy transition. He extended an open invitation to stakeholders, encouraging further participation in this rapidly expanding sector.

Sustainability Meets Inclusivity: A National Model for Green Innovation

India’s advancements in renewable energy aren’t just about numbers—they reflect a commitment to sustainability and inclusivity. The minister spotlighted Ahmedabad’s cutting-edge waste-to-energy plant, which processes 1,000 tonnes of solid waste daily to generate electricity. Projects like this exemplify how clean energy initiatives are simultaneously addressing urban waste management challenges, supporting farmers, and enhancing community well-being.

“This is not just about clean energy; it’s about creating a better, more inclusive future for everyone,” Joshi emphasized.

The Road Ahead: A Global Leader in Renewable Energy

India's renewable energy success story is a testament to its vision, innovation, and determination to lead the global energy transition. With its remarkable growth trajectory, declining costs, and strong investment appeal, the country is setting a benchmark for sustainable development. As Joshi aptly put it, India’s clean energy revolution is not just an opportunity for investors—it’s a movement toward a brighter, greener tomorrow.