India adds record 20.1 GW renewable capacity in April-August, 123% jump YoY
- IBEF
- October 1, 2025
India added 20.1 gigawatt (GW) of renewable energy capacity in FY26 (April-August 2025), marking a record 123% increase over 9 GW added in the same period last year. This surge was driven by a strong project pipeline and the expiry of inter-state transmission charge waivers, with full-year additions expected to exceed 35 GW, supported by rising electricity demand, according to ICRA. The previous fiscal saw 28.7 GW of capacity added, up from 18.5 GW in FY24, aided by favourable solar photovoltaic (PV) module prices and policy support.
Despite robust growth, challenges remain in execution, including land acquisition, transmission infrastructure, and delays in signing power purchase agreements. The tendering pipeline remains strong, with 142.8 GW under development, though recent auction activity has slowed. Solar module prices in India remain high at Rs. 13.32-15.10 (US$ 0.15-0.17) per watt, while imported N-type modules cost around Rs. 7.11-7.99 (US$ 0.08-0.09) per watt, making them attractive for developers. Exports of solar cells and modules rose 21% YoY in early FY26, aided by favourable United States (US) tariffs. However, the recent 50% US tariffs on Indian solar exports may affect competitiveness and future volumes.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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