Solar Power Leads the Charge: India Adds Record 25 GW of Renewable Energy in FY 2024–25

In a significant achievement for India’s clean energy ambitions, the Ministry of New and Renewable Energy (MNRE) added 25 gigawatts (GW) of renewable energy capacity in the financial year 2024–25. This marks a 35% increase compared to the 18.57 GW added in FY 2023–24. The progress highlights India’s continued focus on sustainable energy under the leadership of Prime Minister Shri Narendra Modi.

Solar Power Leads the Charge

India’s solar energy sector played a pivotal role in this growth. Solar capacity additions rose from 15 GW in FY24 to nearly 21 GW in FY25, reflecting a 38% year-on-year increase. With this addition, India surpassed the milestone of 100 GW in installed solar capacity, reaffirming its position as a major global player in solar energy.

Domestic Solar Manufacturing Strengthens

In line with the government’s Atmanirbhar Bharat initiative, domestic solar manufacturing saw unprecedented expansion. By March 2025:

• Solar module manufacturing capacity increased from 38 GW to 74 GW.
• Solar photovoltaic (PV) cell capacity surged from 9 GW to 25 GW.
• The nation’s first ingot-wafer manufacturing facility (2 GW) began operations.

Under the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules, investments worth ₹41,000 crore were made, creating approximately 11,650 direct jobs. These developments signal a shift towards reducing import dependence and enhancing self-sufficiency in clean energy production.

PM Surya Ghar Muft Bijli Yojana Empowers Households

The PM Surya Ghar Muft Bijli Yojana made notable strides during the year. As of March 31, 2025:

• Over 11.01 lakh households benefited from the scheme.
• ₹5,437.20 crore was disbursed as Central Financial Assistance.
• Assistance reached 6.98 lakh households, encouraging the use of rooftop solar panels.

The scheme has played a vital role in promoting solar energy adoption among residential consumers, especially in rural and semi-urban areas.

Green Hydrogen Sector Gains Traction

India’s Green Hydrogen ambitions also saw a boost in FY25:

• ₹2,220 crore was awarded for 1,500 MW of annual electrolyser manufacturing capacity.
• ₹2,239 crore was allocated for 4.5 lakh tonnes per annum of Green Hydrogen production.
• 7 pilot projects aimed at decarbonising the steel sector received ₹454 crore.
• 5 transport-sector pilot projects worth ₹208 crore were launched, introducing 37 hydrogen-powered vehicles and nine hydrogen refuelling stations.

These initiatives under the National Green Hydrogen Mission indicate India’s intent to establish itself as a global leader in hydrogen-based clean fuel.

Record Progress in PM-KUSUM Scheme

The PM-KUSUM Scheme, which promotes solar energy use in agriculture, achieved remarkable outcomes in FY25:

• Under Component B, 4.4 lakh solar pumps were installed—a 4.2x increase over the previous year.
• Under Component C, 2.6 lakh pumps were solarised, 25 times higher than in FY24.
• The totalTotal installed and solarised pumps under the scheme crossed the 10-lakh mark.
• Financial expenditure under PM-KUSUM rose by 268% to ₹2,680 crore.

These results reflect growing farmer participation and government efforts to promote clean irrigation solutions.

IREDA’s Enhanced Role in Clean Energy Financing

The Indian Renewable Energy Development Agency (IREDA) played a pivotal role in scaling up financing for clean energy:

• Loan sanctions rose by 27% to ₹47,453 crore.
• Loan disbursements increased by 20% to ₹30,168 crore.

This financial support has enabled several large-scale renewable projects to take shape across the country.

India’s Global Standing in Renewable Energy

Union Minister Shri Prahlad Joshi remarked that India “may have already become or will soon become the 3rd largest renewable energy capacity holder in the world.” This progress reflects the government’s long-term vision of sustainable energy development, energy security, and economic resilience.

Conclusion

India’s performance in FY 2024–25 showcases its unwavering commitment to renewable energy growth. From solar and hydrogen to agricultural reforms and manufacturing expansion, the momentum is clear. While challenges remain, these achievements mark a critical step forward in India’s clean energy journey.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.