India's Renewable Energy Sector Set for $350 Billion Investment by 2030

Minister Pralhad Joshi highlights India's ambitious clean energy targets and module manufacturing capacity in a recent event.

pocketias team

•February 26, 2026•5 mins read

Joshi outlines $350 billion renewable energy push

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1. Investment Push and 500 GW Target by 2030

India’s renewable energy (RE) sector is projected to attract $350 billion in investments over the next five years to achieve 500 GW of non-fossil fuel capacity by 2030. This aligns with India’s broader climate commitment of achieving net zero emissions by 2070.

NITI Aayog has estimated that India would require $22 trillion** investment to meet its 2070 net-zero target. Over the last decade alone, more than **$ 150 billion has already been invested in the clean energy transition.

The scale of planned investment reflects not only climate responsibility but also industrial and economic strategy, as affordable clean energy is central to India’s competitiveness.

“Our requirement will be around $350 billion to reach 500 GW of non-fossil capacity by 2030.” — Pralhad Joshi

Large-scale capital mobilisation is essential to avoid energy bottlenecks, climate risks, and competitiveness loss. Without sustained investment, both climate commitments and industrial ambitions may be compromised.

2. Capacity Expansion and Global Positioning

India has achieved over 50% non-fossil fuel-based installed power capacity, five years ahead of its national target, making it the only G20 country to do so.

Non-fossil installed capacity stands at around 267 GW, compared to 81 GW in 2014. Solar capacity has grown from 2.8 GW to over 140 GW, while total renewable capacity (excluding hydro) exceeds 195 GW.

This rapid expansion positions India as a key player in global climate governance and clean energy markets.

Capacity Milestones:

Non-fossil capacity: 267 GW
Solar capacity: 140+ GW
Total RE (excluding hydro): 195+ GW
Rooftop solar installations: 30 lakh+
Rooftop generation: 14 GW

“What India has achieved on the renewable energy front in the past 11 years is really pathbreaking.” — Pralhad Joshi

Early achievement of targets enhances credibility in global climate negotiations and attracts international investment flows.

3. Cost Reduction and Energy Affordability

A major achievement of India’s renewable transition has been the reduction in per-unit power cost. Solar tariffs have fallen from around ₹11 per unit (2014) to nearly ₹2.15 per unit.

For firm and dispatchable renewable energy (FDRE) tenders, including storage, prices have been discovered between ₹4–₹4.5 per unit, indicating improved viability of round-the-clock renewable supply.

Feeder-level solarisation under PM-KUSUM in Maharashtra reportedly reduced agricultural power costs from around ₹9 to ₹3 per unit.

Tariff Trends:

Solar tariff (2014): ₹11/unit
Recent solar tariff: ₹2.15/unit
FDRE tariffs: ₹4–₹4.5/unit
PM-KUSUM example: ₹9 → ₹3/unit

Lower renewable tariffs improve industrial competitiveness and reduce subsidy burdens, directly supporting the goal of becoming a globally competitive manufacturing economy.

4. Energy Storage and Grid Integration

Renewable expansion requires parallel development of storage and grid infrastructure to address intermittency. India plans to add 41 GW per hour storage capacity to support the 500 GW target.

Policy emphasis has shifted towards:

Firm and Dispatchable Renewable Energy (FDRE) tenders
Pump Storage Projects (PSP)
Wind-solar hybrid projects

Intermittency challenges are increasingly being managed through storage integration and diversified generation.

Without adequate storage and transmission upgrades, high renewable penetration could create grid instability and stranded assets.

5. Domestic Manufacturing and Supply Chain Self-Reliance

India has expanded domestic solar module manufacturing capacity to over 140–144 GW, reducing imports by more than 50%, with expectations of further reduction by 80%.

The government has allocated over ₹24,000 crore under the Production-Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules.

Cell manufacturing capacity, which was zero in 2014, has now reached 27 GW, with projections of 50–60 GW by 2029. Plans are underway to domestically manufacture wafers, ingots (by 2028), and polysilicon, covering the entire solar supply chain.

Manufacturing Highlights:

Module capacity: 140+ GW
Cell capacity: 27 GW (current)
Target cell capacity: 50–60 GW (by 2029)
PLI allocation: ₹24,000+ crore

“As far as solar is concerned, the entire supply chain will be manufactured in India very soon.” — Pralhad Joshi

Domestic manufacturing reduces import dependence, strengthens energy security, and supports India’s ambition to become the third-largest economy.

6. Rooftop Solar and Inclusive Energy Access

Under PM Surya Ghar Muft Bijli Yojana (PMSGMBY), India has crossed 30 lakh rooftop solar installations, generating around 14 GW of power.

To ensure inclusion, the government is exploring:

Utility-led models for households without suitable rooftops
Additional support for those unable to afford solar even after subsidy

Feeder-level solarisation under PM-KUSUM integrates renewable energy with agricultural power supply.

Distributed solar enhances energy access, reduces distribution losses, and democratizes clean energy adoption.

7. Climate Commitment, Industrial Competitiveness and Viksit Bharat

India’s renewable strategy simultaneously addresses three commitments:

Global: Emission reduction and climate responsibility
Domestic: Affordable and reliable energy for citizens
Industrial: Lower power costs to enhance global competitiveness

Affordable energy is essential for achieving long-term economic ambitions, including the vision of Viksit Bharat by 2047.

“The Earth provides enough to satisfy every man's needs, but not every man's greed.” — Mahatma Gandhi

Balancing rapid industrialisation with sustainable energy expansion is crucial for long-term ecological and economic stability.

Conclusion

India’s renewable energy transition reflects a strategic blend of climate responsibility, industrial policy, and energy security. Rapid capacity expansion, declining tariffs, domestic manufacturing integration, and storage deployment are reshaping the energy landscape.

Achieving the 500 GW target by 2030 and progressing toward net zero by 2070 will depend on sustained investment, grid reforms, and supply chain localisation. If successfully implemented, renewable energy can become the foundation of affordable growth, industrial competitiveness, and sustainable development in the coming decades.

Quick Q&A

Everything you need to know

India’s renewable energy (RE) transition strategy rests on three major pillars: capacity expansion, domestic manufacturing, and affordability. The government aims to achieve 500 GW of non-fossil fuel-based installed capacity by 2030, supported by an estimated $350 billion investment over the next five years. As of now, India has already crossed 267 GW of non-fossil capacity, with solar power growing from 2.8 GW in 2014 to over 140 GW. This scale demonstrates a structural shift in India’s energy mix.

The second pillar is domestic manufacturing self-reliance. Through the Production-Linked Incentive (PLI) scheme worth over ₹24,000 crore, India has expanded module manufacturing capacity to over 140 GW and reduced imports significantly. The government is moving towards complete supply-chain integration, including cells, wafers, ingots, and polysilicon manufacturing. This reduces external dependence and strengthens energy security.

The third pillar is cost reduction and energy accessibility. Solar tariffs have declined from ₹11 per unit in 2014 to around ₹2.15 per unit today. Rooftop solar under PM Surya Ghar Yojana and feeder-level solarisation under PM-KUSUM demonstrate the dual objective of sustainability and affordability. Together, these pillars position renewable energy as both a climate and economic strategy.

Renewable energy sources like solar and wind are inherently intermittent, producing electricity only when the sun shines or wind blows. As India increases renewable capacity, managing grid stability becomes a critical challenge. This makes energy storage and FDRE essential to ensure round-the-clock power supply.

The government plans to add 41 GW of storage capacity and promote pump storage projects (PSP). FDRE tenders, which integrate storage with renewable generation, have discovered tariffs between ₹4–₹4.5 per unit, indicating improved commercial viability. These measures help address intermittency while maintaining affordability.

Strategically, storage enhances grid reliability, reduces curtailment of renewable energy, and supports industrial competitiveness by ensuring uninterrupted power supply. Without storage, high renewable penetration could destabilise the grid. Thus, energy storage is not merely a technical add-on but a foundational requirement for sustainable decarbonisation.

India’s emphasis on domestic manufacturing of solar modules, cells, wafers, and polysilicon strengthens both economic resilience and strategic autonomy. With module manufacturing capacity exceeding 140 GW and cell capacity reaching 27 GW (projected to rise to 50–60 GW by 2029), India is moving towards a fully integrated solar supply chain.

This reduces import dependence—particularly on China—thereby enhancing energy security. The Approved List of Models and Manufacturers (ALMM) ensures quality control and promotes domestic producers. The PLI scheme incentivises scale and technological advancement, fostering industrial ecosystems similar to those seen in East Asia.

Economically, domestic manufacturing generates employment, stimulates ancillary industries (glass, aluminium), and supports export potential. Affordable renewable power also reduces industrial production costs, boosting global competitiveness. Thus, renewable manufacturing is both a climate solution and an industrial policy instrument.

India’s renewable energy expansion has achieved remarkable milestones, including surpassing 50% non-fossil installed capacity among G20 nations ahead of schedule. Tariff reductions from ₹11 to around ₹2.15 per unit demonstrate strong cost competitiveness. Large-scale rooftop solar and hybrid projects indicate inclusive and diversified growth.

However, challenges persist. High renewable penetration requires massive investments in transmission infrastructure and storage. Renewable projects also face land acquisition hurdles and ecological trade-offs. Additionally, the $22 trillion estimated requirement for net-zero by 2070 highlights the scale of financial mobilisation needed.

Balanced View: While India’s progress is globally recognised, sustaining momentum requires grid modernisation, policy stability, and continuous innovation. Renewable expansion must be integrated with storage, nuclear diversification (e.g., small modular reactors), and industrial policy to ensure long-term viability. Thus, environmental transformation must be matched with institutional and financial robustness.

The PM Surya Ghar Muft Bijli Yojana (PMSGMBY) aims to expand rooftop solar adoption, with over 30 lakh installations generating around 14 GW. This scheme reduces household electricity bills and decentralises power generation. For individuals without rooftop access, the government is exploring utility-led models to ensure inclusion.

Similarly, PM-KUSUM promotes solarisation of agricultural pump sets. In Maharashtra, feeder-level solarisation reduced power costs from ₹9 to ₹3 per unit. This not only lowers fiscal burden on state utilities but also improves farmer incomes and promotes sustainable irrigation practices.

Broader Implications: These schemes demonstrate how renewable energy can address climate goals while advancing social equity. By reducing energy poverty, enhancing rural incomes, and promoting decentralised generation, they align environmental sustainability with inclusive development—key to achieving Viksit Bharat by 2047.