By 2025, India’s renewable energy story had moved beyond the question of how fast capacity could be added to how well that capacity could function within the power system. Official data from the Ministry of New and Renewable Energy (MNRE) shows that India crossed over 180 GW of installed renewable energy capacity, excluding large hydro, during the year. When large hydro is included, non-fossil fuel capacity crossed the 200 GW mark, taking India closer to its stated goal of 500 GW of non-fossil capacity by 2030.
While capacity growth remained steady, MNRE’s policy focus in 2025 increasingly reflected the realities of grid integration, variability and system stability.
From megawatts to grid integration
Solar power continued to dominate additions, accounting for the largest share of renewable capacity, followed by wind. However, government documents and ministerial statements through the year acknowledged that high solar and wind penetration was creating operational challenges for the grid.
This recognition drove greater emphasis on hybrid renewable projects, combining solar and wind, and on round-the-clock (RTC) renewable power tenders. The aim was to ensure that renewable electricity could be supplied consistently, rather than intermittently, aligning clean energy growth with rising demand.
Energy storage moves into policy focus
One of the clearest shifts in 2025 was the growing centrality of energy storage. MNRE-backed initiatives on Battery Energy Storage Systems (BESS) gained momentum, supported by policy coordination with the power ministry.
Government communications repeatedly underlined that storage would be essential to integrate high renewable capacity. Pumped storage projects also received renewed attention, with several states identifying sites and moving projects into planning and approval stages.
Manufacturing and the PLI push
Domestic manufacturing remained a core pillar of MNRE’s strategy. The Production Linked Incentive (PLI) scheme for high-efficiency solar modules, with a total government outlay of ₹24,000 crore, continued to anchor India’s effort to reduce import dependence and build end-to-end solar manufacturing capacity.
By 2025, MNRE consistently positioned renewable energy not only as a climate imperative but as an industrial opportunity, aligned with broader self-reliance goals.
Green hydrogen: Laying the groundwork
The National Green Hydrogen Mission, approved with an outlay of ₹19,744 crore, moved from announcement to early implementation in 2025. While commercial-scale deployment remains a longer-term objective, the year saw progress on pilot projects, policy frameworks and sectoral consultations.
MNRE reiterated that green hydrogen would be critical for decarbonising sectors such as fertilisers, refining and steel, where direct electrification is difficult.
Rooftop solar and decentralisation
Decentralised renewable energy also featured prominently. The launch and rollout of PM Surya Ghar: Muft Bijli Yojana, which aims to cover one crore households with rooftop solar, reinforced MNRE’s focus on consumer-led energy transition.
The scheme was positioned as both a clean energy and welfare initiative, intended to reduce household electricity bills while easing pressure on distribution companies.
What 2025 tells us?
MNRE’s 2025 narrative reflects a maturing renewable energy ecosystem. With headline capacity targets largely on track, policy attention shifted to storage, transmission, manufacturing and system reliability.
The year underscored a key reality: India’s energy transition will be decided not just by how much renewable power is installed, but by how seamlessly it can power homes, industries and cities. In that sense, 2025 was less about scale—and more about making scale work.
