India's Solar Push: Targets, Capacity and Policy (2026)

Last updated 18 October 2026 · By Pradeep Kumar, India Solar

In short: India has committed to 500 GW of non-fossil power capacity by 2030 and passed 50% non-fossil installed capacity in June 2025, more than five years ahead of its climate target. Solar reached 150.26 GW by 31 March 2026 after a record 44.61 GW was added in 2025-26, and foreign investment in renewables is allowed up to 100% without approval.

National targets

500 GW of non-fossil capacity by 2030 and net zero by 2070, announced by the Prime Minister at COP26 in November 2021.
About 50% of installed power capacity from non-fossil sources by 2030, in India's updated climate commitment approved in August 2022.
Reached early: non-fossil sources passed 50% of installed capacity in June 2025 and stood at 51.93% (266,788 MW of 513,730 MW) on 31 December 2025.
India's 2035 climate commitment, filed in 2026, raises the aim to 60% non-fossil capacity by 2035 (as reported).

Capacity and growth

Measure	Figure	As of
Installed solar capacity	150.26 GW	31 Mar 2026
Installed solar capacity	162.15 GW	30 Jun 2026
Solar added in 2025-26	44.61 GW (record; target was 34 GW)	FY 2025-26
Non-fossil capacity added in 2025-26	55.29 GW (record)	FY 2025-26
Solar module manufacturing capacity	about 172 GW	31 Mar 2026
India's rank in renewable capacity (IRENA)	3rd, after China and the US	Dec 2025 data

Capacity share and generation share are different: non-fossil sources produced 29.2% of India's electricity in 2025-26, because coal plants run more hours than solar plants. The gap is why demand for new clean power, and for the plants already running, keeps growing.

Programmes behind the growth

Production-linked incentive for high-efficiency solar modules: ₹24,000 crore across two tranches (2021 and 2022).
Approved List of Models and Manufacturers (ALMM): listed modules, and from 1 June 2026 listed cells, for government-supported projects.
PM Surya Ghar rooftop scheme: ₹75,021 crore to solarise 1 crore homes; over 43 lakh done by June 2026.
PM-KUSUM for farmers: ₹34,422 crore of central support for about 34,800 MW.
Solar parks: 54 parks with 39,188 MW sanctioned by February 2026.
Green Energy Corridor transmission: 24,568 MW of renewable power evacuated by February 2026.
Renewable tenders of 50 GW a year planned from 2023-24 to 2027-28.
Renewable purchase obligation for utilities of 35.95% in 2026-27.
GST on renewable energy devices cut from 12% to 5% from 22 September 2025.

What matters most for owners of running plants

Getting paid: under the Late Payment Surcharge Rules 2022, utilities' overdue legacy payments to generators fell from ₹1,39,947 crore in June 2022 to ₹3,330 crore in March 2026 (as reported from a Lok Sabha reply).
Transmission charges: solar and wind plants commissioned by 30 June 2025 keep a full waiver of inter-state transmission charges; later plants pay a rising share until the waiver ends in July 2028. This favours plants already running.
Open access: the Green Energy Open Access Rules 2022 let consumers from 100 kW buy green power directly, widening the market for commercial and industrial sales.
Foreign ownership: up to 100% under the automatic route.
Budget: the renewable energy ministry's allocation rose to ₹32,914 crore for 2026-27 from ₹26,549 crore (as reported).

Sources

General information only, not investment, legal or tax advice. Rules change and depend on your circumstances; take advice before you act. India Solar does not offer securities or guarantee returns.