India’s “Green Bolt”: Half of India’s Installed Energy Capacity Now Comes From Non-Fossil Sources

In a striking affirmation of its green energy ambitions, India has officially reached a major milestone. 50% of the nation’s total installed electricity capacity now comes from non-fossil fuel sources, totalling 242.8 GW out of 484.8 GW. Announced by Union Minister Shri Pralhad Joshi, the achievement arrives a full five years ahead of the nation’s Paris Agreement target.

Illustration by The Geostrata

More than just a statistic, this feat is a signal to the world that India’s energy transition is more than just talk. As global powers inch towards their climate pledges, India has quietly delivered a “green half-century,” reshaping the energy narrative both at home and on the global stage.

COAL TO KILOWATT

India's transition from a coal-dominated grid to a carbon-lean grid is not a coincidence. It has been firmly based on the competitive solar auctions that have reduced tariffs from ₹17.05/kWh in 2016 to ₹2.57/kWh today, which is 30% less than coal's marginal costs. 

In recent years, reliance on Chinese imports has decreased from 90% to roughly 54% because of policy tools like the ₹24,000 crore PLI scheme, which has promoted the rapid domestic manufacturing of 67 GW solar modules.

CLEAN ENERGY TO A CURRENCY OF GLOBAL INFLUENCE

India’s milestone in sustainable climate practice is not just a domestic triumph; it is a potent diplomatic lever. Founded by India and France, the International Solar Alliance (ISA) currently has more than 120 member countries. It has supported India's position as a thought climate leader and a responsible partner in the Global South by assisting in the sharing of solar technology and expertise throughout Africa, the Pacific and beyond.

This has promoted closer ties with emerging economies and allowed India to tie solar diplomacy to talks for access to vital raw minerals as well. An estimated ₹4 trillion in fossil fuel imports have been avoided by India, thanks to its energy transition, which has also freed up funds to provide technical assistance and concessional support to its immediate neighbours and Africa, as COP, BRICS and G20. This would challenge the legacy carbon powers’ global narrative and advocate for climate justice for developing economies.

AHEAD OF THE CURVE IN CLIMATE CONSCIOUSNESS

In comparative terms, India’s progress is striking. By volume, China still has the most installed renewable capacity in the world as of 2025. More than 57% of China's grid is powered by non-fossil sources, including massive new hydropower plants and gigawatt-scale solar parks.

The European Union's renewable energy output is just under half, with 46 to 47% of its capacity coming from solar, wind and hydropower by 2024, and a set target of 65% by 2030. With renewables accounting for roughly 28% of installed capacity, the US lags even further behind. However, India has surpassed both the US and the EU in relative progress and is the only major power to meet its Paris clean-energy target ahead of schedule.

WHAT IS INDIA DOING DIFFERENT

India’s meteoric rise stems from the grassroots scale and ambition at home. Renewable energy deployment has accelerated on both rural fields and urban rooftops thanks to government programs like PM-KUSUM, PM Surya Ghar-Muft Bijli Yojana, large solar parks, and a forward-thinking wind-solar hybrid policy.

However, enterprise is just as much of the engine as policy. The clean energy transition is now quicker, more flexible, and surprisingly scalable because of a strong push from the private sector, with developers spearheading quick roll-outs rather than depending entirely on state-run utilities.

A strong emphasis on manufacturing and independence is at the core of this change. The government has increased incentives for domestic production of solar panels, wind turbines, and battery cells in keeping with the "Make in India" movement. This has reduced reliance on imports and matched industrial growth with climate goals. 

India's next objective is to install 500GW of non-fossil power by 2030, which will require the addition of 35 - 40GW of clean power annually for the following five years. Rapid battery storage and pumped hydro deployment, increased domestic module production, and the development of new cross-border transmission corridors linking South and Southeast Asia are all necessary to achieve this. With these actions, India has the potential to become both a regional energy anchor and a leader in climate change.

In India's quest for a resilient, renewable-powered grid, expanding storage capacity is essential, and its strategic importance cannot be emphasised. Solar and wind energy's inherent intermittency creates operational challenges because sunlight and wind are not constant, and without storage, a wealth of clean energy during peak generation hours could be lost, resulting in curtailment and inefficiency.

Advanced batteries and other energy storage devices solve this problem by storing excess power when output surpasses demand and releasing it during blackouts or at night, allowing for a consistent, 24-hour supply and lowering dependency on coal-fired "backup" plants.

The government's approach is already yielding positive results. Improved storage capacity and grid coordination are widely credited with helping India meet a record peak power demand of 241GW in June 2025 without experiencing supply shortages.

In order to meet the country's renewable energy goals, plans call for increasing storage capacity to 411GWh by 2031 and approximately 2,400GWh by 2047. To put it briefly, storage is the vital link that enables India's clean energy investments to provide safe, dependable, and reasonably priced electricity, establishing the framework for further decarbonisation and an incredibly adaptable, resilient energy system.

CONCLUSION

India’s early accomplishment isn’t just about megawatts, it’s about narrative and diplomacy. While the West debates net zero by 2050, India has already delivered 50% non‑fossil capacity in 2025. India can now credibly anchor climate finance, driving change across nations.

The tone is neither smug nor sanctimonious but confident. India has lit the renewable lamp early, and now the real test is keeping it burning brighter, through smart policy, innovation, storage and above all, global cooperation.     

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BY ARYAVEER SHARMA

CENTRE FOR ENVIRONMENT AND CLIMATE ACTION

TEAM GEOSTRATA

info@thegeostrata.com