India added more than 7.78 gigawatts (GW) of solar power during the first quarter of the current calendar year, which is the second highest on record in over three years.
According to the quarterly update by the Institute for Energy Economics and Financial Analysis (IEEFA), India’s solar power capacity addition fell by over 8 per cent year-on-year (y-o-y) to 7.78 GW during Q1 FY25 against the record 8.5 GW added a year ago.
“Despite the reduction, it is the second-highest capacity installation achieved in the last 13 quarters, the period of our observation. Quarter-on-quarter (q-o-q), installations increased by 9.6 per cent from Q4 2024,” the IEEFA report pointed out.
At 1,875 megawatt (MW) in Q1 2025, wind power capacity additions were the highest in the last 13 quarters. Increased solar and wind capacity additions are driven by higher offered capacities through various tenders—solar, wind, solar + wind hybrids, and energy storage—since 2018, it added.
While total tendered capacity increased to around 40GW in 2018 and 2019 (and dipped during COVID-19 years), it crossed 50 GW in 2023 and 2024.
Tendered capacity has been increasing since 2023, driven by India’s ambition to add about 50GW of non-fossil fuel power capacity every year from 2023 to achieve 500GW of the said capacity by 2030.
“However, delays in signing power supply agreements and in receiving permits and approvals, and hurdles in gaining grid connectivity continue to hinder capacity installations,” it added.
While solar and wind are the main drivers of non-fossil fuel capacity, India has also witnessed contributions from hydro, biomass, waste-to-energy and nuclear power over the years.
IEEFA pointed out that coal power capacity additions have also increased since Q1 2023 as plants under construction were expedited to meet growing electricity demand in the country. At 2,843 MW, coal capacity additions were the second highest in the last 13 quarters.
Among large states (in terms of installed renewables power generation capacity of 10 GW or more), Rajasthan and Gujarat led renewable energy capacity expansion by adding 1,973 MW and 1,910 MW, respectively, in Q1 2025.
Other notable capacity additions in Q1 2025 happened in Maharashtra (1,780 MW) and Karnataka (1,316 MW).
For the first time in several quarters, Andhra Pradesh experienced an uptick in renewable energy capacity installations (940 MW) in Q1 2025. Andhra Pradesh is witnessing renewed interest from renewable energy investors with the implementation of its new Integrated Clean Energy Policy in October 2024, which aims to install 160 GW of clean energy and energy storage capacities over five years.