India Reaches 50 Per Cent Clean Power Capacity Ahead Of Target

08 Dec 2025 CW Team

Recent reports have suggested that the Ministry of New and Renewable Energy (MNRE) has advised lenders to pause financing for renewable energy projects due to concerns around overcapacity. The Ministry has now clarified that no such advisory has been issued to any financial institution for stopping lending to renewable power projects or renewable energy equipment manufacturers.

MNRE explained that it has only shared information with the Department of Financial Services and NBFCs — including PFC, REC and IREDA — on the current domestic manufacturing capacity in the solar PV value chain. This includes modules, solar cells, ingots and wafers, polysilicon, and ancillary components such as solar glass and aluminium frames. The aim is to ensure that lenders adopt a calibrated and well-informed approach when assessing new proposals, and expand financing to upstream stages rather than limiting support to module manufacturing alone.

The Government of India remains committed to building self-reliance in solar PV manufacturing and positioning the country as a key player in global supply chains. This vision is supported through measures such as the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, along with policies designed to ensure a level playing field for domestic industry.

These interventions have helped expand India’s solar module manufacturing capacity from just 2.3 GW in 2014 to roughly 122 GW today, as per MNRE’s Approved List of Models and Manufacturers (ALMM). This remarkable scale-up reflects coordinated efforts between industry, State Governments and the Centre. It also reinforces India’s broader commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and contributing significantly to global decarbonisation.

MNRE stated that it will continue to strengthen the solar manufacturing ecosystem through sustained policy support, infrastructure enhancement and innovation. Engagement with stakeholders will remain central to ensuring that India’s clean energy transition remains competitive, inclusive and future-ready.

India has achieved 50 per cent of its installed electricity capacity from non-fossil fuel sources — five years ahead of the timeline pledged under its Nationally Determined Contributions to the Paris Agreement. As of 31 October 2025, non-fossil power capacity stands at around 259 GW, with 31.2 GW added in the current financial year up to October. Recent reports have suggested that the Ministry of New and Renewable Energy (MNRE) has advised lenders to pause financing for renewable energy projects due to concerns around overcapacity. The Ministry has now clarified that no such advisory has been issued to any financial institution for stopping lending to renewable power projects or renewable energy equipment manufacturers. MNRE explained that it has only shared information with the Department of Financial Services and NBFCs — including PFC, REC and IREDA — on the current domestic manufacturing capacity in the solar PV value chain. This includes modules, solar cells, ingots and wafers, polysilicon, and ancillary components such as solar glass and aluminium frames. The aim is to ensure that lenders adopt a calibrated and well-informed approach when assessing new proposals, and expand financing to upstream stages rather than limiting support to module manufacturing alone. The Government of India remains committed to building self-reliance in solar PV manufacturing and positioning the country as a key player in global supply chains. This vision is supported through measures such as the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, along with policies designed to ensure a level playing field for domestic industry. These interventions have helped expand India’s solar module manufacturing capacity from just 2.3 GW in 2014 to roughly 122 GW today, as per MNRE’s Approved List of Models and Manufacturers (ALMM). This remarkable scale-up reflects coordinated efforts between industry, State Governments and the Centre. It also reinforces India’s broader commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and contributing significantly to global decarbonisation. MNRE stated that it will continue to strengthen the solar manufacturing ecosystem through sustained policy support, infrastructure enhancement and innovation. Engagement with stakeholders will remain central to ensuring that India’s clean energy transition remains competitive, inclusive and future-ready.

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