India has attracted FDI of $45 billion in the Renewable Energy Sector in the last 12 Years

India’s renewable energy sector has become one of the country’s most important growth stories, driven by falling technology costs, rising electricity demand, and stronger policy support.

The clean-energy expansion is being led by solar power, with support from wind, hydro, biomass, and newer storage-linked projects.

The country’s progress is tied to both climate goals and energy security, since domestic renewables reduce dependence on imported fossil fuels and help meet rising power demand from industry, cities, and transport.

Renewable energy installed capacity in the country has nearly quadrupled from 76.38 GW in 2014 to 288.58 GW as of 30.06.2026, which shows how rapidly the sector has scaled in just over a decade.

Source-wise installed capacity under solar, wind and other renewable sources is given below:

Factors Contributing to India’s Renewable Energy Growth

India’s renewable growth is largely led by three factors – 

Government push

The government has played a central role by setting targets, running auctions, offering incentives, and creating enabling policy frameworks for solar parks, grid expansion, and manufacturing.

Public agencies have also helped de-risk investment through long-term power purchase agreements and transmission planning, which makes large-scale projects more bankable.

This policy support has been crucial in turning renewable energy from a niche segment into a mainstream part of the power system.

Private sector role

The private sector has been the main engine of project execution, capital deployment, and innovation.

Developers, utilities, equipment makers, and energy-service companies have expanded rapidly, especially in utility-scale solar, rooftop systems, hybrid projects, and battery-linked solutions.

Private firms are also pushing manufacturing, storage, and green supply chains, which is helping India build a more complete clean-energy ecosystem.

Foreign Investments

Foreign investment has been a major driver of India’s renewable energy growth, especially in solar and wind assets.

Global investors and development finance institutions have supported projects through equity, debt, and platform investments, attracted by India’s large market and long-term demand outlook.

India has attracted approximately US$ 45.72 billion in Foreign Direct Investment (FDI) in the renewable energy sector from FY 2014 to FY 2026.  

Additionally, during the same period, domestic financial institutions (12 Public sector banks, IREDA, PFC, REC, IIFCL, NaBFID, and SIDBI) have deployed Rs. 12.32 lakh crore towards the renewable energy sector.

Wrapping Up

Even with strong momentum, the sector still faces land acquisition hurdles, transmission delays, financing constraints, and the need for faster deployment of storage.

Future growth will depend on better grid integration, more domestic manufacturing, and continued policy certainty.

Still, India’s renewable energy transition is now firmly established, and it is likely to remain one of the country’s most dynamic sectors in the years ahead