New Delhi: India ranks third globally in solar power capacity and fourth in renewable energy installed capacity, says the IRENA RE Statistics 2025. India produced 108,494 GWh of solar power, more than Japan’s 96,459 GWh, and became the world’s third-biggest solar energy producer.
The renewables now make up 50.07 percent of the total installed power capacity of 484.82 GW. This milestone, part of the CoP 26 (Conference of Parties) commitment, was achieved five years ahead of the 2030 target.
The Associated Press (AP) reports that India is planning to develop solar manufacturing to rival its eastern neighbour, China, which makes more than 80 percent of solar components in its solar supply chains and supplies key materials.
India is facing another challenge in the form of the United States, which slapped 50 percent Indian tariffs on Indian goods that took effect last month while simultaneously taking other steps to hinder adoption of solar and clean energy.
India’s fast-growing clean energy demand is helping solar manufacturers withstand external pressures, including new U.S. tariffs. Analysts note that strong domestic appetite for solar power will cushion any slowdown in exports, as India pursues ambitious renewable energy targets.
The U.S. has been a major market, accounting for nearly a third of India’s solar panel exports, and proceeds from these sales helped Indian firms upgrade supply chains and reduce dependence on Chinese inputs. Yet, India’s own solar market has expanded rapidly, with installed capacity rising 30-fold in the past decade, supported by lower costs and favorable policies. Companies like Hyderabad-based Vega Solar have already shifted from export reliance to a majority domestic customer base since the pandemic.
Goverment push for solar and renewables
Government initiatives, including restrictions on imports, incentives for local manufacturers, and mandates to source from approved suppliers, have further fueled industry growth. India now has nearly 170 GW of renewable projects underway and aims for 500 GW by 2030. Solar module capacity more than doubled to 74 GW in FY25, while solar cell capacity tripled to 25 GW.
Despite progress, India still imports raw materials and components from China, with $1.3 billion worth brought in during Q1 2025, though this was down by a third from last year. Analysts predict India could eventually need only raw polysilicon imports by 2030, as domestic production of other inputs scales up. Experts stress that supply chain infrastructure remains a key challenge, making the next few years crucial for India’s solar ambitions.