A report by Knight Frank India found that India faces an annual renewable energy financing gap of nearly USD 35 billion (USD 35 bn) as it pursues a target of 500 GW of non-fossil fuel capacity by 2030. The firm noted non-fossil fuel capacity has increased fivefold from 59 GW in 2016 to 300 GW as of July 2026 and that India needs to add nearly 200 GW over the next four years. It said average annual capacity additions of around 50 GW will be required, with investment needs of USD 48-54 bn annually against current annual investments of USD 13-18 bn. Knight Frank observed that financing is particularly challenging because private developers account for more than 90 per cent of India’s renewable energy capacity. The report said project financing in India remains nearly 80 per cent more expensive than in mature international markets, increasing the importance of mechanisms that can recycle capital from operating assets. It identified Infrastructure Investment Trusts, or InvITs, as one mechanism that could allow developers to monetise operational projects and redeploy capital into new capacity, but noted limited uptake to date. Knight Frank estimated that less than two per cent of India’s operational renewable energy capacity has been monetised through InvIT structures so far, underscoring the untapped potential of the route. The report suggested that monetisation via InvITs could reduce the cost of capital over time and accelerate investment into next-generation renewable generation, storage and transmission infrastructure. It pointed to contracted cash flows and long-term power purchase agreements as features that can make operational renewable assets suitable for such structures. The firm highlighted solar as the main source of assets for InvITs, noting India’s solar capacity has risen nearly 13-fold since 2016 and now exceeds half of the country’s renewable capacity. Data cited in the report put solar at 165 GW, wind at 58 GW, hydro at 57 GW and bio-power at 12 GW, while only 3 GW of utility-scale solar has been monetised, or about 2.3 per cent of operational solar assets. Knight Frank estimated that operational utility-scale solar assets worth around Rs 3.1 trillion (Rs 3.1 tn) could potentially qualify for InvIT structures and noted existing renewable InvITs have recorded cash distribution yields of around 10-10.5 per cent.