India's Renewable Energy Sector Hits New Highs
India recorded a substantial surge in its utility-scale solar power capacity additions, jumping approximately 55% year-on-year to reach 28.6 gigawatts (GW) in the 2025 calendar year. This significant expansion was largely propelled by faster project completions ahead of the expiry of the Inter-State Transmission System (ISTS) charges waiver, alongside the commissioning of several long-delayed projects.
Record Renewable Energy Additions
According to insights from JMK Research & Analytics, India's total installed renewable energy capacity neared 258 GW by the end of 2025. Solar energy constituted a dominant share at about 53% of this capacity. Wind power followed at 21%, large hydro at 20%, bio power at 4%, and small hydro at 2%. The year 2025 marked India's highest-ever annual renewable energy additions, with approximately 37.9 GW of solar and 6.3 GW of wind capacity installed.
Driving Factors for Solar Growth
The marked increase in utility-scale solar capacity was primarily attributed to the swift execution of tenders awarded by central and state agencies. Developers expedited installation activities, partly motivated by the approaching ISTS waiver deadline, which significantly boosted project momentum. The open access segment emerged as a crucial growth engine, accounting for over 38% of the total utility-scale solar installations during the year.
Domestic Manufacturing and Rooftop Solar Expansion
Domestic module and cell manufacturing capabilities have also played a supportive role, with cumulative manufacturing capacity exceeding 200 GW by December 2025. Beyond utility-scale projects, rooftop solar installations grew by 72% to approximately 7.9 GW in 2025, with a notable 60% of these additions occurring in the second half of the year. This expansion was considerably influenced by the launch of the 'PM Surya Ghar: Muft Bijli Yojana'. Conversely, the off-grid/distributed solar segment saw a slight decrease of 8.8% compared to 2024.
Wind Sector Momentum
In the wind energy domain, India added about 6.3 GW of new capacity in 2025, nearly doubling the 3.4 GW installed in 2024. This acceleration was largely driven by open-access capacity additions, which represented 60-70% of the year's wind installations.
State-Level Performance
Gujarat emerged as the leading state for installations in 2025, adding around 11.1 GW. Rajasthan followed with 10.2 GW, and Maharashtra with 9.7 GW. Collectively, the top five states—Gujarat, Rajasthan, Maharashtra, Karnataka, and Tamil Nadu—accounted for approximately 83.7% of India's total solar and wind capacity additions for the year.