India Among World’s Cheapest Solar Power Producers as Renewable Costs Stabilise

• India’s solar power cost at $35/MWh in 2025, below China and Brazil.

• Global average solar cost steady at $44/MWh.

• Solar PV costs down 89% since 2010.

• Battery storage prices fell nearly 30% in 2025 to $140/kWh.

• Renewables avoided 8.4 gigatonnes of CO₂ and saved $480 billion in 2025.

India has positioned itself as one of the most affordable large-scale solar power markets globally in 2025, outperforming major economies including China in terms of generation costs. According to the latest report by the International Renewable Energy Agency (IRENA), India’s utility-scale solar photovoltaic (PV) electricity has become one of the least expensive among major markets.

The levelised cost of electricity (LCOE) from solar PV in India was recorded at $35 per megawatt hour (MWh) in 2025. This placed India ahead of China at $36 per MWh and Brazil at $37 per MWh. The global weighted average remained significantly higher at $44 per MWh.

Earlier this year, IRENA ranked India third worldwide in installed solar capacity, fourth in wind energy capacity and fourth overall in total renewable power capacity—highlighting the country’s expanding role in the global clean energy transition.

Costs Begin to Stabilise Globally

The findings arrive at a time when renewable energy costs are showing signs of stabilisation after years of steep declines. Globally, the average cost of solar power remained unchanged at $44 per MWh in 2025. Meanwhile, onshore wind costs dropped to $33 per MWh, and offshore wind stood at $78 per MWh.

Over the longer term, the transformation has been dramatic. Since 2010, solar PV costs have fallen by 89%. Onshore wind costs have declined by 71%, while offshore wind has seen a 63% reduction. In 2025 alone, more than 90% of newly commissioned utility-scale renewable projects generated electricity at a lower cost than the cheapest new fossil fuel alternatives.

However, IRENA noted that the pace of cost reductions is being tempered by new challenges. Lower equipment prices and installation expenses are increasingly being offset by higher financing costs and slightly reduced capacity factors. According to the agency, differences in national economic conditions now account for roughly 2.3 times more variation in financing costs than the technology choice itself. This underscores the growing importance of affordable capital, macroeconomic stability and supportive policy frameworks.

Battery Storage Sees Major Breakthrough

A standout development in the 2025 data is the rapid decline in battery storage costs. The installed price of four-hour utility-scale battery systems dropped nearly 30% in 2025 to approximately $140 per kilowatt hour (kWh)—around 95% lower than 2010 levels. In China, battery costs fell even further, dipping below $70 per kWh.

The sharp fall in storage prices is accelerating the deployment of hybrid renewable systems. At high-quality project sites, solar-plus-battery systems delivering 95% reliability saw costs fall below $85 per MWh in 2025, compared with over $100 per MWh in 2020.

Battery integration is becoming increasingly common. IRENA estimates that roughly one-quarter of all new utility-scale solar capacity commissioned globally in 2025 was paired with storage solutions.

Record Renewable Additions

Global renewable energy installations reached new highs in 2025. Total additions exceeded 690 gigawatts (GW), marking an increase of about 20% compared to the previous year. Solar power accounted for more than 500 GW of new capacity, while wind energy contributed around 160 GW.

Beyond cost competitiveness, renewables delivered significant environmental and economic gains. According to the report, renewable energy deployment in 2025 helped avoid 8.4 gigatonnes of carbon dioxide emissions and reduced fossil fuel expenses by approximately $480 billion.

India’s Strategic Advantage

India’s comparatively low solar generation cost reflects a combination of competitive bidding processes, large-scale deployment, improving supply chains and falling technology prices. However, the broader global trend suggests that future gains will depend increasingly on financing conditions and policy clarity rather than purely technological advancements.

As renewable technologies mature and battery integration accelerates, countries that can provide stable regulatory environments and affordable financing are likely to gain a stronger competitive edge.

With solar power costs already among the lowest globally and storage becoming more economical, India appears well positioned to strengthen its leadership in clean energy—provided it continues to address financing and infrastructure challenges in the years ahead.