In 2009–2010, India’s renewable energy capacity was modest—around 13 GW for wind and nearly zero for solar. Today, India proudly stands with roughly 47 GW of wind capacity and 90 GW of solar capacity—a dramatic jump in just 13 years. Moreover, India’s total power generation capacity has reached 442 GW as of March 2024, with an additional 98 GW added since 2018. 

Among these new capacities, solar energy leads the charge with a 59.8 GW contribution. With renewable sources now accounting for 46.3% of total power generation (compared to 49% from conventional sources like coal and lignite), the stage is set for an even more promising future in Indian renewable energy.

This article explores the monumental growth of the renewable energy sector in India, examines the key drivers and government initiatives behind this transformation, and outlines the mega trends and leading companies setting the pace for innovation in this booming industry.

The Renewable Energy Landscape in India

Sources of Renewable Energy:

  • Solar: With nearly 90.76 GW of capacity, India capitalizes on abundant sunlight—from the deserts of Rajasthan to the plains of Gujarat.
  • Wind: With 47.36 GW of installed capacity, robust wind energy production is seen particularly in coastal regions like Gujarat and Tamil Nadu.
  • Hydro: India generates around 46.92 GW from large hydro projects and an additional 5.07 GW from small hydro installations.
  • Bio-power: Biomass and biogas power generation has reached 11.32 GW, making optimal use of agricultural waste and organic materials.

State Highlights:

  • Rajasthan: Leads the way with approximately 29.98 GW of renewable capacity.
  • Gujarat: Follows close with around 29.52 GW.
  • Tamil Nadu and Karnataka: Contribute significantly with 23.70 GW and 22.37 GW, respectively.

The growth seen today is not solely due to technological improvements; it is also a result of several government initiatives and policy reforms designed to make renewable energy more accessible and affordable.

Government Initiatives and Regulatory Framework

The Indian government has played a pivotal role in driving the country’s renewable energy revolution through several ambitious schemes:

  • National Green Hydrogen Mission: Aimed at scaling up the use of green hydrogen as a sustainable fuel.
  • PM-KUSUM Scheme: Encourages the adoption of solar pumps, enhancing the solar energy market and boosting rural electrification.
  • Production Linked Incentives (PLI) for Solar PV Modules: Support domestic manufacturing of solar panels and related components.
  • Offshore Wind Initiatives: Gujarat and Tamil Nadu are pioneering plans to install 1 GW of offshore wind capacity, with additional support from Viability Gap Funding.

These initiatives contribute significantly to the renewable target of 500 GW by 2030, reflecting a robust policy framework that fosters investment and technological advancement.

Technological Advancements and Industry Mega Trends

1. Technological Advancements

Recent years have witnessed rapid technological progress in the renewable energy sector:

  • Wind Turbines: Modern wind turbines now feature larger blades that capture energy more efficiently, even in areas with low wind speeds.
  • Solar Modules: Innovations from polysilicon to monosilicon and advanced modules like mono PERC and bifacial N-type have boosted panel efficiency by 3–4%.
  • Static Solar Trackers: The advent of motionless solar trackers using prism technology helps align panels correctly without moving parts, reducing maintenance costs and enhancing reliability.

2. Cheaper Energy Storage

Energy storage costs have fallen dramatically—from around ₹14-₹15 per kilowatt-hour to below ₹7, with targets to reduce further to around ₹5-₹6 per unit through government Viability Gap Funding (VGF) schemes. For instance, recent RTC tenders in Rajasthan have secured storage costs as low as ₹6.68 per kWh, making stored renewable energy not only cleaner but also more economical compared to traditional coal-based power.

3. The Role of States

State governments are also playing a critical role in boosting renewable energy investments. For example:

  • Gujarat: Targets 36 GW solar and 143 GW wind.
  • Rajasthan: Plans to invest in 65 GW of wind, 15 GW of solar, and 10 GW of pumped hydro storage.
  • Orissa: Recently introduced its first 500 MW wind project, driven by technological advancements and supportive policies.

These ambitious state targets further push the momentum toward a sustainable energy future in India.

Leading Companies in the Indian Renewable Sector

Several key companies are transforming India’s renewable landscape. Here’s a look at some industry leaders making headlines and shaping investor sentiment:

Waaree Energies

  • Profile: India’s largest solar module manufacturer and exporter.
  • Market Share: Holds 21% of the domestic market and contributes 44% to India’s solar module exports.
  • Capacity: Total installed capacity of 13.3 GW.
  • Recent Performance: The stock has risen by 8.88% YTD, reflecting strong market confidence.

Premier Energies

  • Profile: A leading integrated solar cells and module manufacturer.
  • Product Portfolio: Offers monofacial and bifacial modules, along with EPC and O&M services.
  • Capacity: 2 GW for solar cells and 3.36 GW for solar modules.
  • Stock Performance: Listed in September, and has seen a YTD increase of 3.15%.

Inox Wind

  • Profile: Specializes in wind turbine generators and provides turnkey solutions.
  • Capacity: Manufacturing capacity exceeds 2.5 GW across four facilities, with an O&M capacity nearing 10 GW.
  • Stock Performance: YTD surge of 77.62% highlights robust demand.

Suzlon Energy

  • Profile: A well-known renewable energy solutions provider that manufactures wind turbine generators.
  • Market Presence: With an installed base of 15 GW, Suzlon represents about 32% of India’s total wind capacity.
  • Stock Performance: Has recorded a YTD increase of 73.90%.

Sterling & Wilson Renewable Energy Ltd

  • Profile: A global leader in solar EPC solutions, handling both project execution and O&M.
  • EPC Portfolio: 20.7 GWp, with an additional 7.8 GWp under O&M.
  • Stock Performance: Up by 31.79% YTD.

These companies are at the forefront of India’s renewable revolution, leveraging technological innovation, cost-effective storage, and expanding operational capacities to capture market opportunities.

Future Outlook for the Renewable Sector

The renewable energy sector in India is on an upward trajectory, powered by both technological advancements and supportive government policies. Key future trends include:

  • Increased Installed Capacity: The ambitious target of 500 GW renewable energy capacity by 2030 sets the stage for sustained growth.
  • Technological Breakthroughs: Continuous improvements in solar module efficiency and wind turbine design will drive further cost reductions and efficiency gains.
  • Cheaper and More Efficient Storage: As storage costs continue to decline, renewable energy will become increasingly competitive against conventional power sources.
  • Enhanced Grid Integration: Modern grid management and distributed generation models will facilitate higher integration of renewable sources.
  • State-Driven Growth: With individual states setting aggressive renewable targets, private investments and public-private partnerships are expected to flourish.

Investors and market analysts are closely monitoring these trends, as they directly impact the future performance of renewable projects and associated stocks. With technological innovations and lower energy storage costs, renewable energy is rapidly proving to be both economically and environmentally viable.

Conclusion

India’s renewable energy landscape has transformed remarkably over the past decade. From a modest 13 GW capacity in 2009–10 to a dynamic, multi-source portfolio that now includes robust solar, wind, hydro, and bio-power, the country’s commitment to clean energy is undeniable. Government initiatives such as the National Green Hydrogen Mission, PM-KUSUM scheme, and solar PV Production Linked Incentives, coupled with aggressive state-level targets, have fueled this growth and set ambitious goals for the future.

With leading industry players such as Waaree Energies, Premier Energies, Inox Wind, Suzlon Energy, and Sterling & Wilson Renewable Energy Ltd, the market is witnessing strong momentum and investor confidence. These companies are not only driving operational efficiencies and technological innovations but are also paving the way for a greener, more sustainable energy future for India.

As renewable energy becomes increasingly accessible and economically competitive, the future looks bright for India’s green revolution. With falling storage costs, advancing technology, and robust policy support, renewable energy is set to play a critical role in reducing India’s carbon footprint and ensuring a secure energy future.

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