India Renewable Energy Market is driven by supportive policies, rising energy demand, and rapid urbanization during the forecast period.

According to the TechSci Research report, “India Renewable Energy Market – By Region, Competition, Forecast and Opportunities, 2021–2031F,” the India Renewable Energy Market was valued at USD 19 billion in 2025 and is projected to reach USD 31 billion by 2031, growing at a CAGR of 8.82% during the forecast period. The market is witnessing strong momentum, underpinned by government policy support, international climate commitments, rising power demand, and a shift toward sustainable energy solutions.

Environmental and Policy Drivers

One of the key forces propelling India’s renewable energy sector is its growing environmental consciousness and urgent need to transition from fossil fuels. With rapid urbanization, population growth, and industrial development, the country faces severe environmental degradation, including rising air pollution, water stress, and greenhouse gas emissions. This has necessitated a nationwide shift to clean and sustainable energy alternatives.

India’s commitment to global climate agreements such as the Paris Accord has further catalyzed renewable energy growth. Under its Nationally Determined Contributions (NDCs), India aims to achieve about 50% of its cumulative electric power installed capacity from non-fossil fuel sources by 2030. This target represents a significant ramp-up in renewable energy deployment, requiring aggressive investment and policy reform to ensure timely implementation.

The government has responded with a supportive regulatory environment that includes financial incentives, tax exemptions, and accelerated clearances for renewable energy projects. Additionally, initiatives such as the International Solar Alliance, PM-KUSUM scheme, and Green Energy Corridor reflect India’s dedication to building a cleaner energy future.

Rising Public and Corporate Support

Beyond governmental initiatives, public awareness and health concerns have also fueled the shift to green energy. Increasing incidences of respiratory illnesses due to air pollution and the growing frequency of climate-related natural disasters have heightened public demand for cleaner power sources. As a result, individuals and communities are increasingly advocating for cleaner, decentralized energy models such as rooftop solar and off-grid renewable systems.

On the corporate side, sustainability has become a strategic imperative. Businesses are increasingly integrating Environmental, Social, and Governance (ESG) criteria into their operations and investment decisions. Many Indian and multinational corporations have joined global platforms like RE100, committing to 100% renewable energy sourcing. These voluntary pledges are driving a surge in green energy procurement through Power Purchase Agreements (PPAs), rooftop solar installations, and captive renewable energy projects.

Financial institutions are also adjusting their investment portfolios, reducing exposure to fossil fuels and channeling funds into sustainable energy ventures. The availability of green financing, combined with falling costs of solar and wind technologies, is making renewable energy projects more viable than ever.

Industrial Sector Leads the Way

By end use, the industrial segment dominates India’s renewable energy landscape. Industries such as cement, steel, textiles, IT, and heavy manufacturing are among the largest consumers of electricity in the country. Rising electricity tariffs, unstable fossil fuel pricing, and environmental accountability are pushing these sectors to seek more cost-effective and cleaner alternatives.

One of the key advantages for industries is cost savings. The cost of solar and wind energy has dropped significantly over the past decade, allowing companies to secure long-term, low-cost energy through open access models and captive generation. These mechanisms not only ensure reliable power but also reduce dependence on state utilities, which are often plagued by inefficiencies and high cross-subsidization charges.

Government support has played a pivotal role. Policies offering waivers on transmission charges, accelerated depreciation, and capital subsidies have incentivized industrial users to transition to renewable energy. Additionally, the ease of land acquisition, financing options, and availability of technical expertise make renewable projects feasible and attractive for large-scale industrial operations.

Sustainability is another major motivator. Many companies are aligning their operations with global climate targets and internal ESG benchmarks. The drive for green certification, carbon neutrality, and cleaner supply chains ensures that the industrial sector will remain a critical player in expanding India’s renewable energy capacity.

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North India: A Hotbed of Renewable Energy Growth

Regionally, North India is emerging as one of the most promising markets for renewable energy development. The region boasts ample solar irradiation, especially in Rajasthan, Haryana, and Uttar Pradesh, making it ideal for large-scale solar projects. Rajasthan, in particular, has become a solar powerhouse with several ultra-mega solar parks and a supportive policy environment.

State governments in the north have introduced ambitious solar and wind policies, coupled with investor-friendly measures such as streamlined approvals, land banks, and fiscal incentives. These efforts have helped attract both domestic and international investors, accelerating capacity additions.

The region’s rapid industrialization and urban growth also contribute to rising energy demand. Cities like Delhi, Noida, Gurugram, and Jaipur are major consumption hubs requiring stable, affordable, and clean power. Locating renewable energy projects near these high-demand zones minimizes transmission losses and enhances economic viability.

Furthermore, infrastructure improvements have made renewable energy integration easier. The Green Energy Corridor initiative and development of high-capacity transmission networks in the region facilitate seamless evacuation and distribution of renewable power, ensuring grid stability and reducing curtailment risks.

Outlook

India’s renewable energy market stands at a pivotal point in its energy transition journey. With robust policy backing, technological innovation, and growing demand from industrial, residential, and commercial sectors, the country is well-positioned to accelerate its shift to a sustainable energy economy.

As environmental challenges intensify and fossil fuel resources become more strained, renewable energy will play an increasingly central role in meeting India’s energy needs. From driving economic development and energy security to combating climate change, the renewable energy sector is poised to shape the nation’s future.

With a well-coordinated approach involving the government, industry, and consumers, India’s renewable energy market is expected to experience sustained and inclusive growth through 2030 and beyond.

Major companies operating in the India Renewable Energy Market are:

NextEra Energy, Inc.
Iberdrola, S.A.
Enel S.p.A.
Orsted A/S
Siemens S.A.
Vestas Wind Systems A/S
Canadian Solar Inc.
First Solar, Inc.

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“India’s renewable energy market presents a significant growth opportunity driven by its ambitious target of 500 GW of non-fossil fuel capacity by 2030. Rapid urbanization, rising energy demand, and climate commitments are fueling investment across solar, wind, hybrid, and green hydrogen segments. Government incentives, declining technology costs, and increasing corporate sustainability initiatives further strengthen the market potential.

Emerging areas such as energy storage, rooftop solar, and electric mobility integration offer additional avenues for expansion. With strong policy support and investor interest, India is poised to become one of the world’s largest and most dynamic renewable energy markets in the coming decade.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“India Renewable Energy Market, By Type (Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, Others), By End Use (Residential, Commercial, Industrial, Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Renewable Energy Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions. The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Renewable Energy Market.

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