India well on path to solar overtaking coal-based capacity

New Delhi: India reached installed capacity of 162.15 GW of solar energy in June this year, marking a significant rise from 3 GW in 20214.

Though India still remains far behind its giant neighbour China in solar power production, it overtook the United States in annual solar capacity additions, becoming the world’s second-largest growth market. India added 37 GW of solar capacity in 2025, as against 34 GW produced by the US, though China remained far ahead, adding 315 GW during the year.

If we look back, we find that ten years ago, solar power occupied only a small place in India’s electricity mix. Today, it forms the largest share of the country’s renewable energy capacity. The solar power growth has got a major push through the newly approved Pradhan Mantri Surya Sarovar Yojana (PM-SSY).

The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) approved on 31 July 2026, aims to support 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS). The states will be able to manage peak demands through ESS with a minimum storage capacity of two hours (10,000 MWh) The government says that by utilising existing reservoirs and industrial ponds, the scheme will reduce pressure on scarce land resources. It will also improve grid reliability through integrated energy storage. With an outlay of ₹5,070 crore, the scheme will be implemented from FY 2026– 27 to FY 2030– 31.

According to the official information available, the scheme is based on an assessment by the National Institute of Solar Energy (NISE). The assessment estimates a floating solar potential of about 102.18 GWp across India’s reservoirs and suitable inland water bodies. The scheme is expected to reduce around 10 million tonnes of CO₂ emissions annually. It will generate 16,000–17,000 full-time equivalent jobs. It will also promote domestic manufacturing of floatation systems, PV cells, modules and energy storage systems. All States and Union Territories will be eligible to benefit through this scheme. The initiative will increase India’s floating solar capacity by 5,000 MW, from the current level of around 700 MW.

A strong policy framework has laid the foundation for the expansion of the national solar expansion. Key initiatives included the National Solar Mission (2010), the Solar Parks Scheme, the Green Energy Corridor Programme, and competitive bidding. Together, they accelerated large-scale solar deployment.

India had declared at COP26 in Glasgow that it will install 500 GW of non-fossil fuel capacity by 2030 and achieve net-zero emissions by 2070. These commitments were reflected in India’s updated Nationally Determined Contributions under the Paris Agreement.

It is expected that India will go over China’s current milestone in terms of the relative position of solar and coal. The government has said that India’s installed solar capacity will overtake coal-based capacity by 2036 and could go up beyond it by nearly 200 GW.

–India News Stream