India added a record 22 gigawatts (GW) of renewable energy capacity in the first half of 2025, driven primarily by solar installations and policy incentives, according to analysis from Rystad Energy. Despite the surge, fossil fuels continue to account for the bulk of the country’s electricity generation.
The 22GW added between January and June represents a 57% increase over the 14.2GW installed during the same period in 2024. The new capacity includes 18.4GW of solar, 3.5GW of wind, and 250 megawatts (MW) of bioenergy, making it the highest-ever renewable addition in any six-month period in India.
The rapid growth was attributed in part to developers accelerating project timelines to benefit from the central government’s Interstate Transmission System (ISTS) charge waiver. The phased incentive scheme, which begins at a 25% discount, is scheduled to ramp down annually until its full implementation in June 2028.
“India installed 22GW of renewable energy capacity in the first half of 2025, a new record,” said Sushma Jaganath, vice president of renewables and power research at Rystad Energy. “However, the country is still banking heavily on coal to meet growing power demand, with plans to install an additional 80GW of new thermal projects.”
Total renewable capacity now stands at 234GW, including large hydropower, bringing India closer to its target of sourcing 50% of installed power capacity from clean energy. But fossil fuels—primarily coal—continue to dominate electricity generation, accounting for approximately 75% of output in the first half of the year.
India’s energy mix is also seeing developments in nuclear power, with the 700MW Unit 7 of the Rajasthan Atomic Power Project recently connected to the northern grid. Additionally, the government has approved the development of the country’s first small modular reactor (SMR) in Bihar.
Battery energy storage systems (BESS) also saw record growth. Awards for 5.4GW of collocated solar-BESS projects and 2.2GW of standalone BESS were issued, marking the country’s largest battery storage allocation to date.
“India is not yet undergoing a true energy transition; instead, it is focusing on building up installed capacity from both conventional and renewable energy sources to ensure energy security,” Jaganath added. “Without urgent action to improve affordability and sustainability, particularly through grid upgrades and energy storage, coal will remain central to electrification efforts, jeopardising progress toward India’s net-zero goals.
