India’s renewable energy sector has entered 2026 on a strong footing, supported by record capacity additions, expanding domestic manufacturing, and sustained policy backing. The country’s clean energy transition is now moving beyond targets and announcements into large-scale execution across solar, wind, energy storage, and emerging green hydrogen projects.

Record Capacity Growth Strengthens Energy Transition

Over the past year, India added one of its highest-ever volumes of renewable power capacity, with solar energy accounting for the largest share. Utility-scale solar parks, rooftop installations, and hybrid solar-wind projects have all contributed to strengthening grid-scale clean power availability.

This growth has pushed renewables closer to becoming the backbone of India’s electricity mix, reducing dependence on imported fossil fuels and improving long-term energy security.

Policy Stability and Financing Drive Investor Confidence

Continued policy clarity from the central government, combined with improved transmission planning and auction mechanisms, has helped restore investor confidence in the sector. Public-sector financing institutions and private lenders have increased exposure to renewable projects, particularly those aligned with long-term power purchase agreements.

The emphasis on transparent bidding, payment security mechanisms, and grid connectivity has been critical in sustaining momentum.

Manufacturing, Storage, and Green Hydrogen Gain Momentum

Beyond power generation, India is witnessing rapid expansion in solar module manufacturing, battery energy storage systems, and electrolyser production. These segments are emerging as strategic pillars of the clean energy ecosystem, supporting both domestic demand and export potential.

Pilot projects under the green hydrogen mission are gradually transitioning toward commercial-scale deployment, signaling India’s intent to become a global hub for low-carbon fuels.

Outlook for 2026

As India advances toward its long-term climate and energy goals, the focus in 2026 is expected to shift toward execution efficiency, grid resilience, and market integration. The renewable energy sector is no longer a parallel system but an integral component of national infrastructure planning.

With sustained reforms and continued private-sector participation, India’s clean energy journey is poised to influence global renewable markets in the years ahead.