India’s Solar Capacity Reaches 150 GW As Renewables Account For ~42% Of Total Power Mix

India’s renewable energy sector is growing quickly as the country works to meet rising power demand while also focusing on its climate goals. As of March 2026, coal continues to hold the largest share in the power mix, contributing 41.66% of the total installed capacity. However, renewable energy, especially solar and wind, is expanding at a strong pace and is becoming a major part of India’s electricity system.

In the first quarter of 2026, India added 14,450 MW of new solar capacity, showing how fast projects are being developed and commissioned. Government support has played a key role in this growth. Policies such as the Approved List of Models and Manufacturers (ALMM) have helped maintain quality standards while also promoting domestic manufacturing.

India has made significant progress in building its manufacturing ecosystem. By January 2026, the country reached 162 GW of solar module manufacturing capacity and 26 GW of solar cell capacity. This has reduced dependence on imports and strengthened local supply chains. The installed solar module manufacturing capacity has now crossed 173 GW, reflecting continued expansion.

Renewable energy accounted for 41.75% of the total installed power capacity by January 2026. Solar energy remains the largest contributor, with total installed solar capacity reaching 150 GW. This represents 67.56% of the renewable energy mix and 28.21% of the overall power capacity. Solar installations have grown by over 42% compared to last year, highlighting strong momentum in the sector.

India’s total installed power capacity crossed 532.7 GW in March 2026, growing at an annual rate of over 12%. Despite the rise of renewables, coal still generates nearly two-fifths of the electricity, showing that it remains important for ensuring a stable supply. This reflects the challenge of balancing clean energy growth with reliability and affordability.

As renewable capacity increases, managing grid stability and storage is becoming more important. Solar and wind are variable sources, so investments in battery storage and grid infrastructure are necessary. Without strong storage systems, it may be difficult to fully utilize renewable energy during peak generation hours.

The sector is also creating jobs and supporting local development, especially in rural areas where many solar and wind projects are located. This is improving electricity access and boosting small businesses. At the same time, increasing renewable capacity is helping India reduce its dependence on imported fuels, improving energy security.

Looking ahead, the growth of renewable energy will depend on faster deployment of storage, stronger grid planning, and consistent policy support. While coal will continue to play a role in the near term, the steady rise of solar power shows that India is moving towards a cleaner and more self-reliant energy future.