India Renewable Energy Market Overview, 2030

India’s renewable energy sector stands as one of the largest and most rapidly expanding in the world, bolstered by a strong policy framework, plentiful natural resources, and ambitious climate objectives. The country aims to attain 500 GW of non-fossil fuel capacity by 2030 and achieve net-zero emissions by 2070. India's venture into renewable energy started with the implementation of hydroelectric power in the early 20th century. Major hydro projects, including the Bhakra Nangal Dam, were pivotal in electrifying rural and urban regions after independence. The oil crisis of the 1970s ignited interest in alternative energy, culminating in the creation of the Department of Non-Conventional Energy Sources in 1982, which was later renamed the Ministry of New and Renewable Energy (MNRE). The 2000s represented a notable transformation with policy initiatives like the Electricity Act of 2003, which introduced Renewable Energy Purchase Obligations (RPOs). By the 2010s, India emerged as a global frontrunner in solar and wind energy, stimulated by programs such as the Jawaharlal Nehru National Solar Mission (JNNSM) initiated in 2010. As of 2023, India’s renewable energy capacity surpasses 125 GW, representing over 40% of the total installed power capacity derived from non-fossil fuel sources. Solar energy is in the lead with roughly 72 GW, followed by wind (45 GW), biomass (10 GW), and small hydro (5 GW). India has also progressed in new fields like green hydrogen and offshore wind. India’s renewable energy sector is poised for significant expansion, underpinned by foreign investments, public-private collaborations, and decreasing costs of solar and wind technologies. Challenges such as land acquisition, grid integration, and financial sustainability remain, but India's robust policy framework and dedication to sustainable development predict a bright future.

According to the research report, "India Renewable Energy Market Overview, 2030," published by Bonafide Research, the India Renewable Energy market is anticipated to grow at more than 12.65% CAGR from 2025 to 2030. India’s renewable energy landscape offers tremendous possibilities. The country's extensive land area and elevated solar radiation levels position it as a frontrunner in solar power, with considerable prospects for wind and hydropower growth as well. The government's dedication to reaching 500 GW of renewable energy capacity by 2030 acts as a strong catalyst for development. Innovations like offshore wind, green hydrogen, and energy storage solutions also promise significant future advancement. Moreover, the increasing need for cleaner and more sustainable energy within urban and industrial sectors presents vast market prospects. In spite of its potential, India encounters numerous obstacles in expanding renewable energy. Issues related to land acquisition, regulatory challenges, and grid integration create major hurdles for the swift development of renewable projects. The country's outdated grid infrastructure often struggles to effectively integrate the fluctuating nature of solar and wind energy. Additionally, financial challenges regarding high upfront investment costs and financing problems, particularly in rural regions, hinder the adoption of renewable energy. The expansion of renewable energy in India is fueled by proactive government initiatives, including the National Solar Mission and various incentives at the state level. The decreasing costs of solar photovoltaic (PV) panels and wind turbines, along with improvements in energy storage technology, have rendered renewable energy increasingly economically feasible. Furthermore, foreign investments and the involvement of the private sector in green energy initiatives further advance growth. India’s venture into renewable energy commenced with large-scale hydroelectric projects in the mid-20th century. The nation made progress in wind energy during the 1990s and introduced the solar mission in 2010. Since that time, solar and wind energy have experienced exponential growth, establishing India as a global leader in these domains.

India's renewable energy industry is varied, incorporating multiple energy sources: hydropower, wind power, solar energy, bioenergy, geothermal, and more. Each type plays a role in the country's initiatives to shift towards a more sustainable energy infrastructure. Hydropower has been a crucial element of India's renewable energy journey, accounting for approximately 12-14% of total electricity production. India possesses substantial potential for both large and small hydroelectric projects, with notable facilities such as the Bhakra Nangal and Sardar Sarovar dams. Nevertheless, the sector encounters obstacles, including environmental issues and restricted opportunities for new large initiatives. In spite of these challenges, small and micro-hydro projects are still vital, particularly in the context of rural electrification. India is a worldwide frontrunner in wind energy, boasting an installed capacity exceeding 45 GW. The western and southern coastal areas provide strong wind resources, rendering them suitable for onshore wind farms. The government has played a significant role in this development through initiatives like tax benefits and the establishment of power purchase agreements (PPAs). India is also investigating offshore wind energy, especially in the Gujarat and Tamil Nadu areas, which have considerable potential. Solar energy represents the quickest growing segment in India, fueled by the government's ambitious goals under the National Solar Mission. India enjoys high solar radiation levels, positioning it as one of the largest markets worldwide for solar power. By 2023, India had more than 72 GW of installed solar capacity, with large-scale solar parks and rooftop systems increasingly gaining traction. The falling prices of solar panels and advancements in energy storage are further enhancing growth. Bioenergy, sourced from agricultural waste, biogas, and biomass, is playing an increasing role in India's energy portfolio. It is especially crucial in rural regions, where biomass serves as cooking fuel, while bioelectricity facilities assist in supplying the grid. India has significant geothermal potential, particularly in areas such as Ladakh, the Himalayas, and certain parts of Maharashtra.

India’s renewable energy market caters to a variety of end-users, including the industrial, residential, and commercial sectors. Each segment has distinct energy requirements and adoption trends, which contribute to the overall growth of renewable energy in the country. The industrial sector stands out as a significant consumer of renewable energy in India, motivated by the necessity to achieve sustainability objectives, cut operational expenses, and guarantee energy security. Industries, especially in energy-intensive fields such as manufacturing, textiles, and cement, are progressively embracing solar, wind, and bioenergy alternatives. Solar energy is widely implemented in large manufacturing facilities and industrial zones, while biomass and biofuels are utilized for process heating. Numerous companies are also relying on renewable energy to satisfy the government’s Renewable Energy Purchase Obligations (RPOs) and enhance their environmental reputation. The residential sector is experiencing a swift increase in renewable energy adoption, especially solar power, fueled by falling prices and government incentives. India’s rooftop solar initiative has gained traction, with households installing solar panels to lower electricity expenses and foster sustainable energy consumption. In rural regions, where grid access could be limited or unreliable, off-grid solar solutions offer a dependable and cost-effective energy option. Government programs, such as subsidies and net metering, further support residential uptake. In addition, biomass-based cookstoves are commonly utilized in rural homes to lessen reliance on firewood and kerosene. The commercial sector, which comprises offices, retail businesses, hotels, and educational institutions, is increasingly adopting renewable energy to decrease costs and fulfill environmental objectives. Solar power is the most favored renewable energy option, with numerous companies choosing rooftop installations or engaging in green power initiatives. Commercial structures are also implementing energy efficiency strategies and employing renewable energy sources for heating and cooling purposes. Hotels, in particular, utilize solar energy for hot water systems, while substantial office complexes and shopping malls invest in both solar and wind energy systems to accommodate their rising electricity demands.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030



Aspects covered in this report
• Renewable Energy Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hydropower
• Wind Power
• Solar Energy
• Bioenergy
• Geothermal
• Others

By End-User
• Industrial
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.