India has emerged as a leading renewable energy market, supported by sustained policy ambition, competitive procurement, infrastructure development and a growing domestic manufacturing base. This report “India Renewable Energy Market Report 2026: Analysis and forecast to 2030” published by IEA examines the evolution and outlook of renewable energy across the power, transport and heating sectors, and considers its implications for affordability, reliability and energy security. India’s experience offers valuable lessons for emerging economies seeking to advance affordable, reliable and secure clean energy transitions. 

Key highlights of the report are:

  • India has become the world’s second fastest-growing renewable energy market and the second-largest manufacturer of solar PV modules. Renewable power capacity has surpassed 300 GW1 in Q4 2026, almost quadrupling over the past decade. India achieved its objective of sourcing 50% of installed power capacity from non-fossil technologies in 2025, five years ahead of schedule. 
  • Renewables are set to supply 35% of India’s electricity by 2030, with generation almost doubling from today’s levels. Renewable generation exceeded 500 TWh in 2025, accounting for one-quarter of India’s total electricity supply, and is forecast to approach 950 TWh in 2030. 
  • India’s competitive auctions have driven down costs, while policy measures have tackled non-cost barriers to deployment. Since 2010, India has awarded over 220 GW of utility-scale renewable capacity through competitive auctions. Transparent price discovery, standardised contracts and central agencies that aggregated demand and reduced counterparty risk have brought tariffs down rapidly. 
  • India is becoming a leading clean energy manufacturing hub globally, helping to diversify international supply chains. Annual solar PV module manufacturing capacity reached around 225 GW in September 2026 and is projected to rise further by 2030. Its wind manufacturing industry is also expanding, with India projected to become the world’s second-largest manufacturer by 2030.
  • India increased biofuel production sixfold between 2020 and 2025, driven by strong policy support. Compressed biogas is emerging as a domestic alternative to imported natural gas. 
  • More than 2 Mt of renewable hydrogen could be produced in 2030 if all announced projects are delivered on time. This volume is around 40% of the Mission’s target. Progress towards implementation has nevertheless been slow. Only around 0.1 Mt of potential production has reached a final investment decision.

Access the full report here