India’s solar energy sector continues its remarkable growth trajectory, with 119,016.54 MW of installed solar photovoltaic (PV) capacity recorded by the end of July 2025. This figure accounts for 63.35% of the country’s total renewable energy capacity, excluding large hydro projects, underscoring the dominant role of solar in India’s clean energy mix.

The surge in solar capacity has been fueled by a combination of falling solar panel costs, improved technology, robust government policies, and growing public awareness of clean energy benefits.

Record Installations in 2025

In the first seven months of 2025 alone, India added 21,151.82 MW of new solar capacity. July contributed 2,768.71 MW, a 2.38% increase over June. Wind energy also saw gains, with 465.25 MW added in July, reinforcing India’s broader renewable expansion.

Policy Support Driving Growth

Government measures have played a critical role in enabling this progress. The Production-Linked Incentive (PLI) scheme has boosted domestic solar manufacturing, while the Approved List of Models and Manufacturers (ALMM) policy has raised quality standards for solar modules. Reinstated on April 1, 2024, ALMM mandates that only certified modules can be used in government projects, with the rule extending to solar PV cells from June 1, 2026 to further ensure system reliability.

Renewable Energy Mix

As of July 2025, India’s total renewable energy capacity—excluding large hydro—stood at 187.862 GW. Solar and wind together contributed nearly 161 GW, representing 91.11% of the total.

· Ground-mounted solar systems lead the market with 90.99 GW installed.

· Rooftop solar has reached 19.88 GW, gaining popularity among homes, businesses, and industries seeking lower electricity bills and greater energy independence.

· Solar-wind hybrid projects stand at 3.06 GW, optimizing land and transmission use.

Off-Grid Solar Transforming Rural India

Off-grid solar systems have surpassed 5.09 GW in capacity, bringing reliable electricity to remote communities. These include solar lanterns, agricultural water pumps, and mini-grids that replace diesel generators, cutting pollution and energy costs.

Challenges Ahead

Despite its achievements, India’s solar sector faces hurdles. Land acquisition for large-scale projects is becoming harder, and integrating increasing volumes of solar into the grid without disrupting supply will require significant investment in transmission networks and advanced grid technologies.