Deepak Dwivedi/h5>
NEW DELHI: SUNNY days are ahead for renewable energy sector in India. The country made strong progress in its clean energy journey in November 2025 by generating 20,600 million units of electricity from renewable sources, excluding large hydro projects. The performance shows how renewable energy is becoming a reliable part of the country’s power system. The total renewable electricity generated during the month was 22.95 pc higher than the level recorded in November 2024. Installed solar and wind capacities crossed the milestones of 125 GW and 50 GW respectively.
This has enabled India to cross two significant thresholds: total renewable energy capacity surged past 200 GW, and non-fossil fuel-based electricity generation capacity rose to more than half of the total installed capacity. Alongside, the solar module manufacturing industry built up a cumulative capacity of 100 GW. These achievements came despite headwinds: a shortage of domestically manufactured solar cells mandated for domestic content requirement projects; grid-related issues leading to solar curtailment; and the loss of the US export market due to the Trump effect. While the US market remains uncertain, the other two constraints are likely to ease due to increased availability of domestic cells and deployment of battery energy storage systems.
Renewable energy is becoming a reliable part of the country’s power system
On the policy and regulatory front, the sector saw important reforms. General Network Access was operationalised, and the day was split into solar and non-solar hours, unlocking transmission infrastructure for use during otherwise idle periods. While 2026 inherits a rich bounty, complacency would be misplaced. Achieving the next phase of growth will require careful crafting of policy and regulatory frameworks. Many such measures are works in progress and much depends on their effective implementation. An overhaul of the Electricity Act, for instance, is in the offing.
The draft Electricity (Amendment) Bill, 2025, seeks to truly open up the sector by allowing multiple distribution companies to operate in the same area. This reform is critical, not the least because the Supreme Court has directed discoms to liquidate their regulatory assets within four years – a move that will inevitably result in higher tariffs. It would be a travesty of justice for a monopolist to pass on rising costs to consumers without the disciplining force of competition. Another eagerly awaited reform is the Government’s initiative to roll out the India Energy Stack, often described as ‘Aadhaar for electricity’. The IES could enable innovations such as virtual power plants and peer-to-peer electricity trading, significantly expanding the market for renewable energy.
India’s potential for global leadership in renewable energy is rooted in its ability to execute projects at a massive scale and achieve some of the world’s lowest costs for solar and wind energy. The country has leveraged its competitive landscape and innovative tender design to achieve low tariffs for solar plus hybrid battery, making clean energy an economically rational choice for new power generation.
Importantly, this scale is supported by a rapidly expanding domestic supply chain. Such policies have seen positive response from the industry, with investment commitment amounting to Rs 48,120 crore. This push for ‘Make in India’ aims to reduce dependence on imports, create more jobs, and strengthen India’s role as a global manufacturing centre for renewable technologies, shifting the country from being a consumer to a significant manufacturer in the global clean energy supply chain.
