How 11 years of Modi govt shaped India’s renewable energy sector

Over the past eleven years, India’s renewable energy sector has undergone a significant transformation, marking a departure from chronic energy shortages to becoming one of the top global players in clean energy. The shift coincides with the tenure of Prime Minister Narendra Modi, whose government has introduced a series of structural reforms aimed at expanding renewable energy capacity, improving infrastructure, and attracting investment.

As of mid-2025, India has installed over 232 gigawatts (GW) of renewable energy capacity, with another 176 GW currently under development. The country now ranks third globally in solar energy, fourth in wind power, and fourth in total renewable energy capacity. This growth stands in stark contrast to the situation in 2014, when solar capacity stood at just 2.63 GW and investor confidence in the sector was low.

A key factor in this expansion has been the shift from feed-in tariffs to a competitive bidding model, which has helped reduce solar tariffs from ₹10.95 per unit in 2010 to as low as ₹1.99 per unit by 2021. This price reduction, combined with policy consistency and infrastructure upgrades, has helped India establish price parity between renewable energy and conventional power sources.

Government schemes have also played a central role. The Production Linked Incentive (PLI) scheme, with an outlay of ₹24,000 crore, has led to significant growth in domestic solar manufacturing capacity. From 2.3 GW of module manufacturing in 2014, the country is projected to reach 88 GW by 2025, with cell manufacturing capacity rising to 25 GW. Policies such as the waiver of inter-state transmission charges and the development of green energy corridors have facilitated easier grid access and supported pan-India project deployment.

The Modi government has also focused on decentralised energy access. The PM-Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems in one crore households, with over 13.75 lakh installations already completed. The PM-KUSUM scheme has supported the solarisation of more than 11 lakh irrigation pumps, promoting clean energy use in agriculture.

Efforts are underway to diversify renewable sources, including plans for 37 GW of offshore wind power tenders by 2030, with pilot projects already launched in Gujarat and Tamil Nadu. In addition, the National Green Hydrogen Mission—backed by nearly ₹20,000 crore in funding—aims to make India a global hub for green hydrogen production.

Private and international investment has increased in parallel. Between April 2020 and September 2024, India attracted nearly $20 billion in foreign direct investment in the renewable energy sector. The RE-Invest 2024 summit saw investor commitments totaling ₹32.45 lakh crore for clean energy projects through 2030.

India has also played a prominent role in global renewable energy cooperation. The International Solar Alliance, launched in 2015 and headquartered in India, now has over 100 member countries. The “One Sun, One World, One Grid” initiative, promoted by the Indian government, seeks to build interconnected solar power networks across regions.

On the domestic front, electrification efforts have reached previously unserved areas, including tribal and remote communities. Programs under the PM JANMAN mission and the CPSU Scheme Phase-II have brought electricity to thousands of households through off-grid solar systems. Skill development initiatives such as Suryamitra, Vayumitra, and Jal Urjamitra are also helping prepare a trained workforce for the growing green economy.

Looking ahead, India is targeting 500 GW of non-fossil fuel power capacity by 2030 and a long-term goal of 1,800 GW by 2047. With rising power demand expected to double by 2032, the government continues to prioritise policy support, infrastructure development, and job creation in the renewable energy space.

While challenges remain—particularly in ensuring grid stability, scaling storage solutions, and supporting domestic supply chains—the sector’s performance over the past decade suggests strong momentum. The Modi government’s sustained focus on clean energy has significantly altered the country’s energy landscape and positioned India as a key contributor to the global energy transition.