India Renewable Energy Market Outlook to 2035

The report titled “India Renewable Energy Market Outlook to 2035 – By Energy Source, By Project Scale, By End-Use Segment, By Ownership Model, and By Region” provides a comprehensive analysis of the renewable energy industry in India. The report covers an overview and genesis of the market, overall market size in terms of installed capacity and investment value, detailed market segmentation; trends and developments, policy and regulatory framework, buyer- and offtaker-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the Indian renewable energy market.

The report concludes with future market projections based on India’s decarbonization commitments, Nationally Determined Contributions (NDCs), grid-scale capacity addition targets, energy security imperatives, electrification of transport and industry, regional resource availability, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and risks shaping the market through 2035.

India Renewable Energy Market Overview and Size

The India renewable energy market is valued at approximately ~USD ~ billion, representing the development, installation, and operation of renewable power generation assets including solar, wind, hydropower, bioenergy, and emerging sources such as green hydrogen-linked renewable capacity. The market encompasses utility-scale projects, commercial and industrial (C&I) installations, and distributed and rooftop systems supplying electricity to state utilities, private offtakers, captive users, and open-access consumers.

India has established one of the world’s largest renewable energy expansion programs, driven by rapid growth in electricity demand, rising dependence on energy imports, climate commitments, and declining levelized cost of renewable power. Solar and wind form the backbone of capacity additions due to abundant natural resources, large land availability in select regions, and continued improvements in module efficiency, turbine size, and balance-of-system costs. Renewable energy has transitioned from a policy-driven sector to a core pillar of India’s long-term power generation mix, increasingly competitive with conventional thermal power on cost and deployment timelines.

The market is anchored by strong central government targets, large-scale auction mechanisms, and long-term power purchase agreements (PPAs) with central and state utilities. Utility-scale solar parks, wind clusters, and hybrid renewable projects dominate new capacity additions, while rooftop solar and C&I captive projects are gaining traction due to rising grid tariffs and corporate sustainability commitments. Renewable energy growth is also supported by the gradual strengthening of transmission infrastructure, including green energy corridors connecting high-resource regions to demand centers.

Regionally, Western and Southern India represent the largest renewable energy hubs. States such as Rajasthan, Gujarat, Tamil Nadu, and Karnataka lead in installed capacity due to high solar irradiation, strong wind regimes, and relatively proactive state-level policies. Central India is emerging as a new growth belt for large solar and hybrid projects, while Eastern and Northeastern regions remain underpenetrated but offer long-term potential driven by hydroelectric resources and grid expansion. Northern India shows increasing adoption of rooftop and distributed renewable systems, supported by urbanization and commercial power demand.

What Factors are Leading to the Growth of the India Renewable Energy Market:

Ambitious national targets and decarbonization commitments drive sustained capacity additions: India has set aggressive renewable energy targets as part of its long-term energy transition strategy, including large-scale additions of non-fossil fuel capacity by 2030 and beyond. These targets are supported by structured bidding programs, long-term PPAs, and policy visibility that enables developers, financiers, and equipment manufacturers to plan capacity expansion. Renewable energy plays a central role in reducing carbon intensity, meeting international climate commitments, and aligning the power sector with broader sustainability and ESG objectives. This policy-driven clarity provides a strong demand foundation extending well into the 2030s.

Declining cost of solar and wind power improves competitiveness versus conventional energy sources: The levelized cost of electricity from solar and wind projects in India has declined sharply over the past decade due to scale, technology improvements, and global supply chain integration. Competitive auctions have consistently driven tariffs to levels comparable to, and often lower than, new coal-based power generation. This cost advantage makes renewable energy increasingly attractive not only for utilities but also for commercial and industrial consumers seeking long-term power cost stability. As storage technologies mature and hybrid configurations become more common, renewables are also improving their ability to provide firm and dispatchable power.

Rising electricity demand and energy security concerns accelerate renewable deployment: India’s electricity demand continues to grow due to urbanization, industrial expansion, electrification of transport, and increased appliance penetration. At the same time, dependence on imported fossil fuels exposes the economy to price volatility and geopolitical risks. Renewable energy offers a domestic, scalable, and strategically secure source of power generation. Large solar and wind projects can be developed relatively quickly compared to conventional power plants, enabling faster response to demand growth while reducing fuel import exposure.

Which Industry Challenges Have Impacted the Growth of the India Renewable Energy Market:

Grid integration constraints and transmission bottlenecks impact project commissioning and capacity utilization: While renewable energy capacity additions in India have accelerated, the pace of transmission infrastructure development has not always kept up with generation growth, particularly in high-resource regions such as Rajasthan, Gujarat, and parts of southern India. Delays in green energy corridor projects, right-of-way challenges, and substation readiness issues can postpone project commissioning even after construction is completed. In some cases, curtailment during periods of high generation reduces effective plant utilization and revenue realization. These grid integration constraints increase execution risk for developers and can affect investor confidence, especially for large utility-scale projects dependent on timely evacuation infrastructure.

Financial stress of distribution companies (DISCOMs) affects payment security and PPA bankability: State-owned distribution companies remain the primary offtakers for a large share of renewable power in India, and their persistent financial challenges continue to pose risks for developers. Delays in payments, renegotiation concerns, and creditworthiness disparities across states impact cash flow predictability and financing terms. Although central government-backed agencies and payment security mechanisms have improved confidence in recent years, exposure to weaker DISCOMs still raises counterparty risk. This dynamic can slow project closures in certain states and increase reliance on central auctions or corporate offtake models to mitigate payment uncertainty.

Land acquisition, permitting complexity, and local opposition extend project development timelines: Large renewable energy projects in India require significant land parcels, often in rural or semi-arid regions where land ownership is fragmented or subject to competing uses. Land aggregation, title verification, local stakeholder negotiations, and environmental clearances can extend development timelines and increase upfront costs. In wind and hybrid projects, additional constraints such as aviation clearances, forest permissions, and wildlife-related approvals add further complexity. These challenges reduce development certainty, particularly for new entrants, and can delay capacity additions despite favorable policy intent.

What are the Regulations and Initiatives which have Governed the Market:

National renewable energy targets, mission-based programs, and central auction frameworks shaping capacity growth: India’s renewable energy market is governed by ambitious national targets supported through mission-mode programs and centralized bidding mechanisms. Initiatives such as long-term non-fossil capacity targets, solar and wind bidding programs, and hybrid and round-the-clock (RTC) renewable tenders provide visibility on future demand. Central agencies play a key role in aggregating demand, standardizing contract structures, and reducing counterparty risk for developers. These frameworks have enabled rapid scale-up of renewable capacity while improving price discovery and developer participation.

Renewable Purchase Obligations (RPOs) and energy transition mandates influencing utility and corporate demand: Mandatory Renewable Purchase Obligations require utilities and certain large consumers to procure a defined share of electricity from renewable sources. These obligations, combined with sector-specific decarbonization pressures, drive sustained demand for renewable power across states. In parallel, open-access regulations and captive generation norms enable commercial and industrial consumers to directly source renewable energy, expanding demand beyond state utilities. Enforcement effectiveness varies by state, but RPOs remain a structural demand driver shaping long-term market growth.

Grid connectivity, forecasting regulations, and market-based mechanisms governing operational compliance: Renewable energy projects in India must comply with grid connectivity standards, forecasting and scheduling regulations, and deviation settlement mechanisms designed to maintain grid stability. These requirements influence project design, inverter and control system selection, and the adoption of energy storage and hybrid configurations. As renewable penetration increases, regulatory emphasis on grid discipline, real-time monitoring, and flexible generation is expected to strengthen, shaping technology choices and operating models across the market.

India Renewable Energy Market Segmentation

By Energy Source: Solar energy holds dominance in the Indian renewable energy market. This is because solar power aligns strongly with India’s resource availability, scalability requirements, and cost-reduction trajectory. Utility-scale solar projects benefit from abundant solar irradiation across western, central, and southern states, relatively faster construction timelines, and competitive tariffs discovered through centralized auctions. Rooftop and distributed solar systems further support adoption across commercial, industrial, and residential segments. While wind energy remains structurally important and hybrid projects are gaining traction, solar continues to account for the largest share of installed capacity additions due to its flexibility across project sizes and end-use models.

Solar Power (Utility-scale + Rooftop)  ~55 %
Wind Power (Onshore)  ~25 %
Hydropower (Large + Small Hydro)  ~10 %
Bioenergy (Biomass, Biogas, Waste-to-Energy)  ~5 %
Hybrid & Emerging (Solar-Wind Hybrid, Storage-linked)  ~5 %

By End-Use / Offtaker Segment: Utility-scale power procurement dominates the India renewable energy market. Central and state utilities account for the majority of renewable power offtake through long-term PPAs awarded via competitive bidding. These buyers prioritize tariff competitiveness, project bankability, and grid-scale capacity addition to meet Renewable Purchase Obligations and national targets. The commercial and industrial (C&I) segment is expanding steadily, driven by rising grid tariffs, sustainability mandates, and open-access mechanisms. Distributed and residential adoption remains smaller in absolute terms but continues to grow in urban and semi-urban markets.

Utilities (Central & State DISCOMs)  ~65 %
Commercial & Industrial (Captive / Open Access)  ~25 %
Residential & Distributed Consumers  ~10 %

Competitive Landscape in India Renewable Energy Market

The India renewable energy market exhibits moderate-to-high concentration, characterized by a group of large, vertically integrated developers and independent power producers (IPPs) with multi-gigawatt portfolios, strong balance sheets, and access to global capital. Market leadership is driven by scale of operating assets, bidding discipline, execution capability, financing access, and long-term relationships with utilities and corporate offtakers.

While large national players dominate utility-scale solar, wind, and hybrid projects, mid-sized developers and EPC-linked platforms remain competitive in C&I and state-level tenders by offering customized project structures, faster execution, and flexible commercial models. The competitive environment continues to evolve as storage-linked renewables, RTC tenders, and green hydrogen-associated capacity create differentiation beyond pure tariff competition.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Adani Green Energy: Adani Green continues to strengthen its market leadership through aggressive capacity expansion, large solar park developments, and hybrid and storage-linked renewable projects. The company’s scale, integrated infrastructure approach, and access to capital enable it to participate competitively in large central auctions and long-duration contracts where balance sheet strength and execution certainty are critical.

ReNew Energy Global: ReNew maintains a strong competitive position through a diversified portfolio across solar, wind, and hybrid assets, with increasing emphasis on RTC and firm power solutions. Its focus on long-term offtake contracts, international capital markets access, and operational optimization supports stable growth and risk diversification across regions and technologies.

NTPC Renewable Energy: As the renewable arm of India’s largest power utility, NTPC Renewable Energy benefits from strong institutional backing, superior credit profile, and direct access to utility-led demand. Its role is central in scaling renewable capacity while maintaining grid reliability, and it increasingly participates in large hybrid and storage-linked tenders aligned with national transition objectives.

Tata Power Renewable Energy: Tata Power Renewable Energy leverages the broader Tata Group ecosystem to compete across utility-scale, C&I, and rooftop segments. The company differentiates itself through strong corporate offtake relationships, execution reliability, and a balanced presence across project sizes, making it well-positioned for decentralized and distributed renewable growth.

Greenko Group: Greenko has carved out a differentiated position by focusing on complex renewable solutions, including pumped storage, hybrid projects, and integrated energy storage platforms. Its strategy aligns with India’s need for dispatchable renewable power, positioning the company favorably as grid flexibility and round-the-clock supply gain importance.

What Lies Ahead for India Renewable Energy Market?

The India renewable energy market is expected to expand strongly through 2035, supported by sustained electricity demand growth, national decarbonization commitments, and the strategic imperative to reduce dependence on imported fossil fuels. Capacity additions will continue to be driven by utility-scale solar, wind, and hybrid projects, complemented by rising adoption of renewable power by commercial and industrial consumers. As renewable energy transitions from a capacity-addition phase to a system-integration phase, the market will increasingly focus on reliability, grid compatibility, and long-term cost stability rather than tariff discovery alone.

Transition Toward Hybrid, Storage-Linked, and Firm Renewable Power Solutions: The future of India’s renewable energy market will see a gradual shift from standalone solar and wind projects toward hybrid configurations that combine multiple renewable sources with energy storage. Round-the-clock (RTC) and firm power tenders are expected to gain prominence as grid operators and utilities seek dispatchable clean energy to replace thermal baseload. Projects integrating battery storage and pumped hydro will become more commercially viable as technology costs decline and regulatory clarity improves. Developers capable of structuring complex hybrid solutions will capture higher-value contracts and long-duration offtake agreements.

Growing Emphasis on Grid Integration, Transmission Readiness, and System Flexibility: As renewable penetration increases, grid integration will become a defining factor shaping market outcomes. Expansion of interstate transmission systems, green energy corridors, and flexible balancing mechanisms will be critical to unlocking future capacity. Forecasting accuracy, scheduling discipline, and real-time power management will gain importance for project developers and operators. Through 2035, renewable assets that demonstrate grid-friendly behavior and flexibility will enjoy stronger offtake confidence and reduced curtailment risk.

Expansion of Commercial and Industrial Renewable Procurement Models: Commercial and industrial demand is expected to play a larger role in market growth as corporations seek long-term power cost predictability and emissions reduction. Captive, group captive, and open-access renewable projects will expand across manufacturing, data centers, IT parks, and large commercial facilities. These buyers value customized contract structures, reliability of supply, and long-term partnership over lowest headline tariffs. This shift will diversify demand sources and reduce exclusive reliance on state utilities for market growth.

Integration of Renewable Energy with Green Hydrogen and New Energy Value Chains: Renewable energy will increasingly act as a foundational input for emerging green hydrogen and green ammonia ecosystems. Dedicated renewable capacity for electrolyzers, industrial decarbonization, and export-oriented hydrogen projects is expected to create incremental demand beyond grid-connected power. This integration will strengthen the strategic relevance of renewables in India’s industrial policy and attract long-term capital into large-scale, multi-decade infrastructure projects.

India Renewable Energy Market Segmentation

By Energy Source

• Solar Power (Utility-scale and Rooftop)
• Wind Power (Onshore)
• Hydropower (Large and Small Hydro)
• Bioenergy (Biomass, Biogas, Waste-to-Energy)
• Hybrid and Storage-Linked Renewable Systems

By Project Scale

• Utility-Scale Projects
• Commercial & Industrial (Captive / Open Access)
• Distributed and Rooftop Systems

By Ownership / Procurement Model

• Utility PPA-Based Projects
• Captive and Group Captive Projects
• Open Access Renewable Procurement
• Government and Public-Sector Led Projects

By End-Use / Offtaker Segment

• Central and State Utilities
• Commercial & Industrial Consumers
• Residential and Distributed Consumers

By Region

• Western India
• Southern India
• Northern India
• Central India
• Eastern & Northeastern India

Players Mentioned in the Report:

• Adani Green Energy
• ReNew Energy Global
• NTPC Renewable Energy
• Tata Power Renewable Energy
• Greenko Group
• JSW Energy
• ACME Solar
• Azure Power
• Regional renewable energy developers, EPC contractors, and asset operators

Key Target Audience

• Renewable energy developers and independent power producers
• EPC contractors and balance-of-system suppliers
• Central and state utilities and power procurement agencies
• Commercial and industrial power consumers
• Data center operators and large infrastructure users
• Green hydrogen developers and industrial decarbonization players
• Financial institutions, infrastructure funds, and private equity investors
• Policy makers, regulators, and grid operators

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035