India’s rapid expansion of renewable energy has helped the country avoid more than $100 billion (approximately Rs 9.4 lakh crore) in coal and natural gas import costs between 2011 and 2025. According to a report by the International Energy Agency (IEA), cumulative savings could reach nearly $240 billion (Rs 22.6 lakh crore) by 2030. The findings highlight the growing economic and energy security benefits of India’s renewable energy transition. By increasing domestic electricity generation from solar, wind and bioenergy, India is reducing its dependence on imported fossil fuels and limiting its exposure to fluctuations in international energy markets.
Renewable Energy Reduces Coal and Natural Gas Imports
The IEA’s India Renewable Energy Market Report 2026, released on November 3, estimates that without the solar photovoltaic (PV), wind and bioenergy capacity added since 2010, India’s coal imports in 2025 would have been approximately 110 million tons higher. Furthermore, the country’s dependence on imported fuels for electricity generation would have exceeded 30%, nearly twice the actual level. The agency projects that annual savings on coal and natural gas imports could reach approximately $35 billion (Rs 3.3 lakh crore) by 2030. This would exceed India’s actual expenditure on non-coking coal and natural gas imports in FY2024-25. These projections assume that international fuel prices remain broadly around their 2024-25 average levels. Renewable energy is strengthening not only India’s climate commitments but also its external-sector resilience by reducing the foreign exchange required to meet growing electricity demand.
India’s Renewable Energy Capacity Crosses 300 GW
India’s renewable energy capacity has nearly quadrupled over the past decade, making the country the world’s second-fastest-growing renewable energy market, according to the IEA. Government data shows that India’s total renewable energy capacity, including large hydropower, reached approximately 299.25 GW as of September 30, 2026. Total non-fossil electricity capacity, including nuclear power, reached approximately 308 GW. Between March 2014 and September 2026, India added around 168 GW of solar capacity and 38 GW of wind capacity, demonstrating the accelerating pace of renewable energy deployment. Importantly, India achieved its target of sourcing 50% of installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of its 2030 deadline under its climate commitments.
Renewable Electricity Generation to Reach 950 TWh by 2030
The expansion of installed renewable energy capacity has also increased electricity generation. The IEA estimates that renewable energy sources generated more than 500 terawatt-hours (TWh) of electricity in 2025, accounting for approximately 25% of India’s total electricity supply. By 2030, renewable electricity generation is projected to approach 950 TWh, meeting around 35% of the country’s power requirements. Solar PV will remain the primary driver of this growth, accounting for more than 80% of India’s renewable capacity additions through 2030. The country’s installed solar capacity is expected to exceed 350 GW, while overall renewable power capacity could reach approximately 530 GW.
Solar Power Costs Decline as Domestic Manufacturing Expands
Competitive auctions have helped India achieve some of the world’s lowest solar electricity generation costs, the IEA noted. Tariffs for solar PV projects commissioned in 2025 were approximately 40% lower than the average cost of coal-fired electricity. At the same time, India has emerged as the world’s second-largest manufacturer of solar PV modules, supported by expanding domestic manufacturing capacity and government incentives. Key initiatives, including the Production Linked Incentive (PLI) scheme and domestic sourcing policies, are encouraging investments in solar manufacturing. This expansion is strategically important as India seeks to diversify global clean energy supply chains and reduce its dependence on imported solar equipment, particularly from China.
Government Schemes Accelerate Rooftop Solar and Agricultural Applications
Government initiatives are also extending renewable energy adoption beyond large utility-scale projects to households and agricultural communities. The PM Surya Ghar: Muft Bijli Yojana is accelerating residential rooftop solar installations, enabling households to generate electricity for their own consumption and reduce dependence on grid power. Similarly, the PM-KUSUM scheme supports solar-powered irrigation pumps and the solarisation of agricultural electricity supply. This helps farmers reduce their dependence on conventional electricity sources. Together, these programmes complement large-scale solar and wind projects by promoting decentralised electricity generation and creating opportunities for households, farmers and businesses to participate in India’s clean energy transition.
IEA Highlights India’s Growing Energy Security Benefits
IEA Executive Director Fatih Birol said India’s renewable energy expansion was delivering significant energy security benefits amid heightened uncertainty in global energy markets. He also emphasised that India’s experience demonstrates how consistent government policies can reduce renewable energy costs and attract investment, offering valuable lessons for other emerging economies. As reported by thehitavada.com, India’s renewable energy transition is delivering benefits beyond emissions reduction. By lowering fossil fuel imports, strengthening domestic manufacturing and expanding clean electricity generation, the country is improving its energy security while creating new opportunities for investment and industrial growth.
