Driving Sustainable Transition and Climate Action: ESG BROADCAST shares key takeaways.
India has marked a historic achievement, surpassing 50% of its total installed electricity capacity from non-fossil fuel sources, five years ahead of its national target. As reported in late 2025, the non-fossil electricity capacity reached over 259 GW, largely propelled by an unprecedented surge in Solar Energy Capacity. This milestone underscores the nation’s commitment to its climate pledges outlined in the Panchamrit Declaration at COP26, including the goal of achieving 50% non-fossil capacity by 2030 and achieving Net Zero Emissions by 2070.
The core driver of this achievement is solar power, which has grown exponentially from just 3 GW in 2014 to nearly 130 GW by October 2025. This remarkable over 40-fold increase positions solar as the single largest contributor to India’s renewable energy portfolio, outpacing capacity additions from wind and hydro sources. The rapid growth in Solar Energy Capacity is a testament to the success of targeted national policies designed to accelerate deployment across diverse sectors of the economy, fostering a broader Sustainable Transition.
Several key government initiatives are responsible for translating these ambitious targets into ground-level results. The PM Surya Ghar mission, launched in early 2024 with a significant financial outlay, is accelerating decentralized adoption, leading to the installation of 7 GW of rooftop solar across approximately 24 lakh households by the end of 2025. Concurrently, the PM-KUSUM scheme has facilitated the installation of over 9 lakh standalone solar pumps, directly integrating clean power into the agricultural sector and enhancing rural energy access. Furthermore, the PM-KUSUM scheme has been extended until March 31, 2026, ensuring continued support for farmers adopting solar solutions.
Government efforts also extend to scaling up domestic manufacturing and infrastructure. The Production-Linked Incentive (PLI) scheme for high-efficiency solar photovoltaic (PV) modules has attracted substantial investment, helping to build a resilient domestic solar supply chain. Separately, the Solar Parks scheme, which facilitates large-scale deployment by providing essential infrastructure, has been extended until March 31, 2029. This measure ensures the completion of approved solar parks totaling nearly 40 GW of sanctioned capacity. The combined success of these initiatives solidifies the trajectory toward meeting India’s goal of 500 GW of non-fossil fuel capacity by 2030.
Strategic significance lies in the fact that India’s rapid deployment of Solar Energy Capacity establishes it as a global leader. For the domestic business and compliance landscape, this signals firm political and financial backing for the Sustainable Transition, creating enormous market opportunities in renewable energy and green technology. Companies must integrate renewable energy sourcing into their long-term capital expenditure and Climate Action plans, as government support for solar and related technologies remains a structural pillar of national economic policy.
Image Credit: The India Forum
