India Becomes World's Second-Largest Solar Growth Market

India emerged as the world's second-largest solar growth market in 2025, overtaking the United States in annual capacity additions. Data from the International Renewable Energy Agency shows India added over 37 GW of solar capacity in 2025, compared to 34 GW for the US, while China remained the global leader with nearly 315 GW. India's total installed solar capacity rose from 98.5 GW in 2024 to 135.5 GW in 2025.

Pralhad Joshi, Minister for New and Renewable Energy, attributed the progress to innovation, world-class infrastructure, and strong policy support, such as the PM Surya Ghar: Muft Bijli Yojana. By March 31, 2026, India reached a cumulative installed solar capacity of 150.26 GW, including a record annual addition of 44.61 GW for the 2026 fiscal year. Renewable energy met 51.5% of India's total electricity demand in July 2025.

Despite these milestones, reports indicate that the domestic manufacturing sector is struggling with approximately 40% capacity utilization. Export pressures have increased as the Federal government of the United States implemented tariffs exceeding 200% in April 2026, impacting a market that previously received 97% of India's solar PV exports. To reach a national target of 500 GW of non-fossil fuel capacity, India must now maintain annual installations of 50 GW.