{"id":106918,"date":"2026-06-05T18:18:38","date_gmt":"2026-06-05T12:48:38","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=106918"},"modified":"2026-06-05T18:18:38","modified_gmt":"2026-06-05T12:48:38","slug":"india-becomes-the-worlds-second-largest-solar-growth-market","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-becomes-the-worlds-second-largest-solar-growth-market\/","title":{"rendered":"India Becomes the World\u2019s Second-Largest Solar Growth Market"},"content":{"rendered":"<p><b>Why in news<\/b><span style=\"font-weight: 400;\">: According to the latest International Renewable Energy Agency (IRENA) report, India added 37 GW of solar capacity in 2025, compared with 34 GW added by the US, making India the world\u2019s second-largest solar growth market. China remained the largest, adding 315 GW during the year.<\/span><\/p>\n<h2><b>Key Highlights of the IRENA Report<\/b><\/h2>\n<p><b>For the first time, India emerged as the world\u2019s second-largest solar growth market in 2025<\/b><span style=\"font-weight: 400;\">, underscoring the rapid expansion of its <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/renewable-energy-in-india\/\" target=\"_blank\"><strong>renewable energy<\/strong><\/a> sector and its growing role in the global clean energy transition.<\/span><\/p>\n<p><b>Solar Capacity Additions (2025):\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India added over 37 GW of solar capacity in 2025, surpassing the United States (34 GW) to become the world\u2019s second-largest solar growth market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China remained the global leader, adding nearly 315 GW of solar capacity in a single year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Global solar power capacity increased by 512 GW, rising from 1,880 GW in 2024 to 2,392 GW in 2025.<\/span><\/li>\n<\/ul>\n<p><b>India\u2019s Installed Solar Capacity:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s installed solar capacity increased from 98.5 GW in 2024 to 135.5 GW in 2025, registering a growth of nearly 37 GW in one year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During the same period, the United States expanded its solar capacity from 177.6 GW to 211.6 GW.<\/span><\/li>\n<\/ul>\n<p><b>Solar Power Generation:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India overtook Japan to become the world\u2019s third-largest solar power producer in 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India generated 108,494 GWh of solar electricity, compared to 96,459 GWh generated by Japan.<\/span><\/li>\n<\/ul>\n<p><b>Overall Renewable Energy Installed Capacity (December 2025):\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India ranked third globally in total renewable energy installed capacity with 250.52 GW.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China retained the top position with 2,258.02 GW, followed by the United States with 467.92 GW.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India surpassed Brazil (228.20 GW) and Germany (199.92 GW) in renewable energy capacity rankings.<\/span><\/li>\n<\/ul>\n<table style=\"width: 66.7098%;\">\n<tbody>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\"><b>Rank<\/b><\/td>\n<td style=\"width: 24.3437%; text-align: center;\"><b>Country<\/b><\/td>\n<td style=\"width: 123.866%; text-align: center;\"><b>Renewable Energy Capacity (GW)<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\">\n<p><b>1<\/b><\/p>\n<\/td>\n<td style=\"width: 24.3437%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">China<\/span><\/p>\n<\/td>\n<td style=\"width: 123.866%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">2,258.02<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\">\n<p><b>2<\/b><\/p>\n<\/td>\n<td style=\"width: 24.3437%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">United States<\/span><\/p>\n<\/td>\n<td style=\"width: 123.866%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">467.92<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\">\n<p><b>3<\/b><\/p>\n<\/td>\n<td style=\"width: 24.3437%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">India<\/span><\/p>\n<\/td>\n<td style=\"width: 123.866%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">250.52<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\">\n<p><b>4<\/b><\/p>\n<\/td>\n<td style=\"width: 24.3437%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">Brazil<\/span><\/p>\n<\/td>\n<td style=\"width: 123.866%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">228.20<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.5012%; text-align: center;\">\n<p><b>5<\/b><\/p>\n<\/td>\n<td style=\"width: 24.3437%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">Germany<\/span><\/p>\n<\/td>\n<td style=\"width: 123.866%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">199.92<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>India\u2019s Solar Growth Trajectory<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India\u2019s solar sector has witnessed unprecedented growth over the last decade, with the pace of capacity addition accelerating significantly in recent years.<\/span><\/p>\n<table style=\"width: 67.2704%;\">\n<tbody>\n<tr>\n<td style=\"width: 58.1892%; text-align: center;\"><b>Milestone<\/b><\/td>\n<td style=\"width: 157.572%; text-align: center;\"><b>Time Taken<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 58.1892%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">2.7 GW (2014) to 50 GW<\/span><\/p>\n<\/td>\n<td style=\"width: 157.572%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">96 months<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 58.1892%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">50 GW to 100 GW<\/span><\/p>\n<\/td>\n<td style=\"width: 157.572%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">36 months<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 58.1892%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">100 GW to 150 GW<\/span><\/p>\n<\/td>\n<td style=\"width: 157.572%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">14 months<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Other Key Milestones:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India added a record 44.6 GW of solar capacity in FY 2025-26, compared to 23.8 GW in FY 2024-25.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Installed solar capacity increased from 98.5 GW in 2024 to 135.5 GW in 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India added 55.3 GW of non-fossil fuel capacity during FY 2025-26.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In July 2025, renewable energy met 51.5% of India\u2019s electricity demand of 203 GW, marking the highest-ever renewable share in power generation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India achieved 50% of its installed power capacity from non-fossil fuel sources ahead of its <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/paris-agreement\/\" target=\"_blank\"><strong>Paris Agreement<\/strong><\/a> commitment.<\/span><\/li>\n<\/ul>\n<h2><b>Factors Driving Solar Growth<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India\u2019s rise as the world\u2019s second-largest solar growth market has been driven by strong policy support, expansion of solar infrastructure, promotion of domestic manufacturing, and continuous technological innovation.<\/span><\/p>\n<p><b>PM Surya Ghar: Muft Bijli Yojana<\/b><span style=\"font-weight: 400;\">: Launched in 2024, it aims to install rooftop solar systems on 1 crore households and provide up to 300 units of free electricity per month.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outlay: \u20b975,021 crore<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">More than 32 lakh households benefited by March 2026<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rooftop solar capacity reached 4,946 MW by July 2025<\/span><\/li>\n<\/ul>\n<p><b>Production Linked Incentive (PLI) Scheme<\/b><span style=\"font-weight: 400;\">: The scheme promotes domestic manufacturing of solar modules and cells to reduce import dependence.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outlay: \u20b924,000 crore<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Created 18.5 GW solar module manufacturing capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attracted \u20b952,900 crore investment and generated 44,400 jobs<\/span><\/li>\n<\/ul>\n<p><b>Solar Parks and Ultra Mega Solar Power Projects<\/b><span style=\"font-weight: 400;\">: Provides land, transmission connectivity, and other infrastructure for large-scale solar projects.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">50 Solar Parks sanctioned across 12 States<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total sanctioned capacity: 37,990 MW<\/span><\/li>\n<\/ul>\n<p><b>Green Energy Corridors (GEC)<\/b><span style=\"font-weight: 400;\">: The Green Energy Corridor (GEC) programme develops dedicated transmission infrastructure to transport electricity from renewable energy-rich states such as Rajasthan and Gujarat to major consumption centres across the country, ensuring seamless integration of solar and wind power into the national grid.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GEC Phase-II aims to establish 10,750 circuit km of transmission lines and 27,500 MVA of substation capacity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By March 2025, 9,161 circuit km of transmission lines and 21,925 MVA of substation capacity had already been completed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Future GEC Phases III and IV are planned to facilitate the evacuation of an additional 150 GW of renewable energy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GEC-III, proposed in the Union Budget FY26, is expected to involve an investment of around \u20b956,000 crore.<\/span><\/li>\n<\/ul>\n<p><b>PM-KUSUM Scheme<\/b><span style=\"font-weight: 400;\">: PM-KUSUM promotes the solarisation of agriculture through solar pumps and feeder solarisation, helping farmers reduce energy costs and earn additional income.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over 9 lakh standalone solar pumps installed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">More than 9.7 lakh feeder-level solarisation pumps completed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduces dependence on diesel and conventional electricity for irrigation.<\/span><\/li>\n<\/ul>\n<p><b>Renewable Purchase Obligations (RPOs) and Domestic Content Requirement (DCR)<\/b><span style=\"font-weight: 400;\">: These measures support both renewable energy demand and domestic manufacturing.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RPOs require DISCOMs and large consumers to procure a specified share of electricity from renewable sources, ensuring steady demand for solar power.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">DCR promotes the use of domestically manufactured solar equipment, reducing import dependence and strengthening the solar manufacturing ecosystem.<\/span><\/li>\n<\/ul>\n<p><b>Research and Innovation<\/b><span style=\"font-weight: 400;\">::India is making progress in next-generation solar technologies.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IIT Bombay developed a 26% efficient perovskite solar cell.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A 30.2% efficient perovskite-silicon tandem solar cell has placed India among global leaders in solar research.<\/span><\/li>\n<\/ul>\n<h2><b>Significance of This Achievement<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India\u2019s emergence as the world\u2019s second-largest solar growth market marks a major milestone in its clean energy transition, strengthening its energy security, climate leadership, and economic competitiveness.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Energy Security<\/b><span style=\"font-weight: 400;\">: Reduced dependence on imported fossil fuels enhances energy independence, improves the current account balance, and cushions the economy against global energy price volatility.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Climate Commitments<\/b><span style=\"font-weight: 400;\">: Accelerates progress towards India\u2019s Nationally Determined Contributions (NDCs), including the target of achieving 500 GW of non-fossil fuel capacity by 2030 and Net-Zero emissions by 2070.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Economic Growth<\/b><span style=\"font-weight: 400;\">: Expansion of the solar sector generates employment, boosts domestic manufacturing, attracts investments, and supports the growth of green industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sustainable Development<\/b><span style=\"font-weight: 400;\">: Facilitates access to clean, affordable, and reliable energy while contributing to environmental sustainability and inclusive growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Global Leadership<\/b><span style=\"font-weight: 400;\">: Positions India as a leading renewable energy power and demonstrates that rapid industrialisation and clean energy expansion can advance simultaneously.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Geopolitical Leverage<\/b><span style=\"font-weight: 400;\">: Strengthens India\u2019s influence in global climate governance and multilateral forums such as the UNFCCC, COP Summits, and the <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/international-solar-alliance\/\" target=\"_blank\"><strong>International Solar Alliance<\/strong><\/a> (ISA).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technological Advancement<\/b><span style=\"font-weight: 400;\">: Encourages innovation in solar manufacturing, energy storage, and next-generation technologies, enhancing India\u2019s long-term competitiveness in the global clean energy sector.<\/span><\/li>\n<\/ul>\n<h2><b>Challenges Ahead<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Grid Integration<\/b><span style=\"font-weight: 400;\">: Rapid solar additions strain grid infrastructure; need for advanced storage and smart grid solutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Land Acquisition<\/b><span style=\"font-weight: 400;\">: Large-scale solar parks face land availability and rehabilitation challenges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Import Dependence<\/b><span style=\"font-weight: 400;\">: Despite PLI push, India still imports significant volumes of solar cells and polysilicon (largely from China).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financing Gap<\/b><span style=\"font-weight: 400;\">: Mobilising capital at the scale needed (especially for distributed rooftop solar) remains a challenge.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Skewed State Distribution<\/b><span style=\"font-weight: 400;\">: Rajasthan, Gujarat, and Tamil Nadu account for a disproportionate share of installations; lagging states need policy attention.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Waste Management<\/b><span style=\"font-weight: 400;\">: Growing concerns about end-of-life solar panel disposal and recycling infrastructure.<\/span><\/li>\n<\/ul>\n<h2><b>Way Forward<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accelerate domestic manufacturing of solar cells, wafers, and polysilicon to reduce import vulnerability and strengthen the supply chain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strengthen grid infrastructure through investment in battery energy storage systems (BESS), pumped hydro, and smart grid technology.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Promote Distributed Renewable Energy \u2014 expand rooftop solar in residential, commercial, and agricultural sectors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure just transition by supporting states and regions with high fossil fuel dependency to shift toward renewables.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expand International Solar Alliance (ISA) initiatives to position India as a leader in global solar diplomacy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Develop a robust solar waste management policy in anticipation of large-scale panel decommissioning post-2030.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>India became the world\u2019s second-largest solar growth market in 2025, adding 37 GW capacity and strengthening its leadership in renewable energy.<\/p>\n","protected":false},"author":25,"featured_media":106949,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[7985],"class_list":{"0":"post-106918","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-studies","8":"tag-india-becomes-the-worlds-second-largest-solar-growth-market","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=106918"}],"version-history":[{"count":6,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106918\/revisions"}],"predecessor-version":[{"id":106950,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106918\/revisions\/106950"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/106949"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=106918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=106918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=106918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}