India Surges Ahead, Overtakes US as World’s Second Largest Solar Growth Market in 2025

India has crossed a landmark threshold in its clean energy journey, emerging as the world’s second largest solar growth market in 2025 , overtaking the United States for the first time. According to the International Renewable Energy Agency (IRENA), India added 37 gigawatts (GW) of solar capacity during the year, edging past the United States, which added 34 GW . China retained its commanding lead with 315 GW .

Union Minister for New and Renewable Energy Pralhad Joshi hailed the achievement, calling India “the fastest growing major solar market” and crediting strong policy support, innovation, and infrastructure for driving record additions. Environment Minister Bhupender Yadav also cited IRENA assessments while highlighting the scale of progress.

The growth curve shows sharp acceleration. India added 9.6 GW in 2023 and 25.4 GW in 2024 , before rising to over 37 GW in 2025 . After crossing 50 GW of cumulative installed capacity in 2022 , India added the next 50 GW in three years and another 50 GW in just 14 months, reaching 154 GW by April 2026 . In total, India added a record 44.61 GW in FY2026 alone. A decade ago, installed capacity stood at just 2.8 GW .

India has now crossed 155 GW of installed solar capacity, helping it meet its Nationally Determined Contributions (NDCs) ahead of schedule and achieve 50 percent non-fossil fuel power capacity earlier than committed. Renewable energy met 51.5 percent of electricity demand during a peak period in July 2025.

Driving this transformation are major government programmes. The PM Surya Ghar: Muft Bijli Yojana has already enabled over 40 lakh households with rooftop solar installations. The Union Budget 2026–27 has allocated ₹22,000 crore for the scheme, alongside ₹5,000 crore for PM-KUSUM , creating a combined ₹28,000 crore push toward solar expansion.

On the manufacturing side, India’s solar module capacity has surged from about 15 GW in 2021 to over 60 GW by end-2025 . Production capacity reached 172 GW in FY2026 , supported by Production Linked Incentive (PLI) schemes aimed at reducing import dependence.

However, challenges remain. Manufacturing utilisation is around 40 percent , and US tariffs exceeding 200 percent have effectively closed a key export market for Indian producers. To meet the 500 GW non-fossil target by 2030 , India must add roughly 35 to 40 GW annually , a demanding but achievable pace if momentum continues.

India’s solar rise is no longer just a promise. It is a measurable, rapidly unfolding reality reshaping the global clean energy landscape.