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India Green Energy Market Outlook to 2030

The India green energy market is currently valued at approximately USD 24 billion, reflecting a convergence around USD 24 billion for 2024.

India-green-energy-market-scaled

Market Overview

The India green energy market is currently valued at approximately USD 24 billion, reflecting a convergence around USD 24 billion for 2024. This valuation is fueled by strong government policy support, cost reductions in solar PV modules and wind turbine technology, and aggressive targets under initiatives like PM KUSUM and tender programmes via SECI and MNRE. These frameworks have accelerated capacity additions, making green energy financially competitive with fossil fuels.

Major urban-industrial hubs such as Delhi–NCR, Mumbai, Bengaluru, Pune, and Ahmedabad–Gujarat dominate demand, driven by high energy consumption, regulatory push for Renewable Purchase Obligations (RPOs), and robust infrastructure readiness. Gujarat and Maharashtra, among others, benefit from abundant solar and wind resources, enterprise-led manufacturing zones, favorable land availability, and proactive state policies. International integration (e.g., solar parks) and investment-friendly zones further elevate their leadership.

India green energy market Size

Market Segmentation

By Energy Source

India’s green energy market is segmented into Solar, Wind, Bioenergy, Small Hydro, and Green Hydrogen. Solar dominates with a ~42.4% share, thanks to falling solar PV costs, abundant sunshine, and strong support via rooftop subsidies and national auctions like PM Surya Ghar. Wind follows, with ~25% due to competitive wind corridors in western and southern India, and policy push through hybrid wind–solar programmes. Bioenergy and small hydro hold niche positions, while green hydrogen is emerging rapidly under new mission support. These dynamics ensure solar and wind continue to lead share in value and capacity.

India green energy market Segmentation by Energy Source

By End-Use Application

The India green energy market is segmented into Grid Power, Industrial, Commercial, Residential, and EV/Transport use. Grid Power accounts for ~60%, led by large utility-scale auctions and DISCOM PPP frameworks. Industrial consumers (~20%) adopt captive solar and open-access PPAs to meet internal RPOs. Commercial (~10%) includes retail and IT sectors investing in rooftop solutions for sustainability targets. Residential (~8%) is smaller but rising via subsidy schemes. Transport (~2%) is emergent, with policy-driven momentum for EV charging and green hydrogen mobility. The dominance of grid and industrial usage stems from scale, regulatory compliance, and cost efficiency.

India green energy market Segmentation by End-user Application

Competitive Landscape

The competitive landscape is concentrated among a few major players with strong portfolios and influence. Adani Green Energy leads with multi-GW solar, wind, and hybrid pipelines, backed by tariff competitiveness and integrated manufacturing capabilities. ReNew Power and Tata Power RE follow, leveraging scale in projects and early adoption of storage integration. Greenko has carved a niche in hybrid + storage builds. Azure, with a focused solar footprint, excels in rooftop and hybrid implementation. Their dominance reflects scale economies, technology maturity, EPC strength, and ability to secure favorable PPAs.

Company Founded HQ Installed Capacity (GW) Technology Portfolio PPA Contracts (GW) Storage Projects Manufacturing Presence R&D/Innovation Financial Leverage
Adani Green Energy 2015 Ahmedabad, Gujarat
ReNew Power 2011 Gurugram, Haryana
Tata Power RE 2011 Mumbai, Maharashtra
Greenko Energy 2015 Hyderabad, Telangana
Azure Power 2008 Gurugram, Haryana

India green energy market Share of Key Players

India Green Energy Market Analysis

Growth Drivers

Policy Incentives

The World Bank approved USD 1.5 billion in June 2024 to scale India’s low‑carbon energy programmes, including green hydrogen and renewable energy tenders. Also, India received USD 3.76 billion in foreign investment during FY 2023–24 for solar projects, facilitated by 100% FDI policy and Production Linked Incentives (PLI). The MNRE’s flagship rooftop subsidy launched with an allocation of â‚ı75,021 crore is expected to cover 10 million households. These sustained flows of public and private capital underscore strong policy traction and investor certainty, amplifying green energy market uptake.

Cost Declines in Generation & Equipment

A record 30 GW of clean energy was added between April 2024 and April 2025, reflecting rapid cost efficiencies. Solar power is now “half the cost” of new coal plants, on account of cheap components and high irradiation. India also achieved 110.83 GW of solar capacity by May 2025 via 70 designated solar parks—evidence of scalable deployment. Furthermore, onshore wind capacity hit 50 GW by March 2025, spread across cost‑competitive sites in Gujarat and Tamil Nadu. These lower generation costs are unlocking higher investment volumes and accelerating large-scale rollouts.

Market Challenges

Land Acquisition

Large-scale renewable projects are facing significant land acquisition roadblocks, especially in densely populated agricultural states. For example, protests over land rights delayed Tata Power’s 100 MW solar plant near Nandgaon, Maharashtra. India’s solar parks—like the Bhadla Solar Park spanning 56 km²—must negotiate leases or compensation for thousands of smallholder plots, creating delays and cost overruns. With non-fossil capacity planning to double to 500 GW, land availability in states like Rajasthan, Gujarat, and Tamil Nadu presents a major bottleneck, triggering regulatory interventions and community engagement efforts such as agrivoltaics.

DISCOM Debt

India’s distribution companies (“DISCOMs”) continue to be burdened by cumulative losses of approximately â‚ı677,000 crore (â‚Ĵ74.4 billion) as of 2022–23. Despite financial restructuring under UDAY, high debt levels limit their ability to procure renewable energy through PPAs, bottlenecking project viability and timely payments. DISCOMs’ weak credit ratings raise borrowing costs and deter private developers, delaying capacity additions. Government-led bailouts have only partially resolved the debt issue, underscoring the need for structural reforms and tariff rationalization to unlock sustainable grid integration of renewables.

Opportunities

Green Hydrogen

India has begun mobilizing large-scale international financing to develop a green hydrogen ecosystem. In June 2024, the World Bank approved USD 1.5 billion to scale domestic electrolyser manufacturing and institutionalize green hydrogen tenders. India’s National Green Hydrogen Mission—dovetailed into these programmes—targets production capacity of up to 450,000 tonnes per annum of green hydrogen by doubling electrolyser installations to 1.5 GW yearly. These investments position India to decarbonize hard-to-abate sectors like steel and fertilizer, where ~6 million tonnes of grey hydrogen is consumed annually. This infrastructure is also expected to stimulate PPPs and private capital flows via blended finance schemes.

Solar Manufacturing

Domestic solar equipment manufacturing is gaining momentum, supported by Production Linked Incentive (PLI) schemes and revolving funding via IREDA. NIIF’s Master Fund—managing USD 4.9 billion AUM as of April 2024—has invested in PV and renewable capacity platforms. Recent investments have been channelled into establishing wafering lines, module assemblers, and cell plants in Gujarat and Rajasthan. With global solar demand surging, local production helps India meet domestic demand (over 30 GW installations in FY2023) and reduces dependence on imports, seizing export opportunities while benefiting from economies of scale and tax-incentivized manufacturing zones.

Future Outlook

Over the 2024–2030 period, the India green energy market is expected to grow steadily at an average CAGR of approximately 9%, reaching approximately USD 37 billion by 2030. Rapid tariff declines in solar and wind, aggressive capacity targets (500 GW mix), strong policy frameworks (PLI, storage tenders, green hydrogen mission), and infrastructure upgrades (interstate transmission, green corridor) will serve as key drivers. Hybrid + storage solutions are expected to mitigate intermittency, appealing to DISCOMs and end-users. Emerging segments like EV charging hubs and green hydrogen will carve niche opportunities, especially aligned with decarbonization strategies and industrial demand. Continued investment (~USD 385 b over 6–7 years via Moody’s) will fuel growth, albeit requiring resolution of land, financing, and grid integration challenges.

Major Players

  • Adani Green Energy
  • ReNew Power
  • Tata Power Renewable Energy
  • Greenko Energy
  • Azure Power
  • NTPC Renewable Energy Ltd.
  • JSW Energy
  • Sembcorp Green Infra
  • Hero Future Energies
  • Ayana Renewable Power
  • Avaada Energy
  • O2 Power
  • Amp Energy India
  • Continuum Green Energy
  • ACME Solar Holdings

Key Target Audience

  • Infrastructure & Power Utilities
  • Energy-Intensive Industries (Steel, Cement, Manufacturing)
  • Renewable Project Developers & IPPs
  • Investments and Venture Capitalist Firms
  • Equipment Manufacturers (Solar Modules, Wind Turbines, Electrolyzers)
  • EV Mobility and Charging Infrastructure Providers
  • Government and Regulatory Bodies (MNRE, CEA, SECI)
  • Financial Institutions & Project Financiers

Research Methodology

Step 1: Secondary Research and Ecosystem Mapping

We began with a comprehensive ecosystem scan of government databases (MNRE, CEA), industry portals, reports (IMARC, MarkNtel, Mordor), and news sources. This phase established core market variables—capacity, tariffs, policy frameworks, and competitive landscape.

Step 2: Historical Data Analysis & Quantification

We aggregated historical data (2019–2023) on installed capacity, generation output, tariff trends, and investment flows. This quantitative baseline enabled constructing a robust bottom-up revenue model and validating CAGR using regression techniques.

Step 3: Primary Expert Consultations

Structured interviews (CATIs) and C-level workshops were conducted with industry stakeholders—developers, DISCOM executives, OEMs, and ministry officials—to capture real-time insights on project pipelines, cost structures, financing, and execution risks.

Step 4: Forecast Modeling & Validation

Scenario modeling was used to project capacity, tariff trajectories, and market value through 2030. Forecasts were stress-tested across policy, demand, and cost-change scenarios. Final results were refined through iterative feedback loops from expert panels and cross-checked for alignment with global benchmarks.

  • Executive Summary
  • Research Methodology
    (Market Definitions and Assumptions, Abbreviations, Market Sizing Approach, Consolidated Research Approach, In-depth Stakeholder Interviews, Government and Institutional Data Sources, Primary & Secondary Research Integration, Limitations)
  • Definition and Scope
  • Sector Genesis and Evolution
  • Policy & Regulatory Landscape Timeline (MNRE, MoP, SECI)
  • National Renewable Energy Mission Alignment
  • Power Purchase Mechanism and DISCOM Integration
  • Transmission & Grid Infrastructure Assessment
  • Green Energy Certificates (RECs) & Trading Mechanisms
  • Growth Drivers
    Policy Incentives
    Cost Declines
    Global Climate Commitments
  • Market Challenges
    Land Acquisition
    DISCOM Debt
    Storage Constraints
  • Key Opportunities
    Green Hydrogen
    Solar Manufacturing
    Carbon Markets
  • Emerging Trends
    Hybrid Projects
    Floating Solar
    Energy-as-a-Service
  • Government Regulation
    ALMM
    RPO targets
    Viability Gap Funding
    PLI
  • SWOT Analysis
  • Stakeholder Ecosystem
  • Porter’s Five Forces Analysis
  • By Installed Capacity (MW), 2019-2024
  • By Generation Output (TWh), 2019-2024
  • By Value (INR Crore), 2019-2024
  • By Carbon Offset Contribution (Million Tonnes CO₂), 2019-2024
  • By Energy Source (In Value %)
    Solar (Rooftop, Utility-scale)
    Wind (Onshore, Offshore)
    Bioenergy (Biogas, Biomass, Waste-to-Energy)
    Small Hydro Power (<25 MW)
    Green Hydrogen
  • By Application (In Value %)
    Power Generation
    Industrial Usage
    Commercial Usage
    Residential Use
    Transportation (EV Charging, Hydrogen Mobility)
  • By Region (In Value %)
    Northern India
    Western India
    Southern India
    Eastern India
    North-East India
  • By Ownership Model (In Value %)
    Central Government (SECI, NTPC RE)
    State Government
    Private Sector IPPs
    PPP Projects
    Community Cooperatives
  • By End User Type (In Value %)
    Grid-connected
    Off-grid / Microgrid
    Captive Consumption
    Third Party Sales
    Open Access Consumers
  • Market Share of Major Players (Installed Capacity, Revenue, Projects)
  • Cross Comparison Parameters (Company Overview, Tech Differentiators, RE Portfolio Composition, Tariff Positioning, PPAs Signed, Storage Integration, Local Manufacturing Units, Grid Feed-in, Innovation Capabilities)
  • SWOT Analysis of Major Players
  • Project-level Tariff Analysis (Solar, Wind, Hybrid, RE+Storage)
  • Detailed Profiles of Major Companies
    ReNew Power
    Adani Green Energy
    Tata Power Renewable Energy
    Greenko Energy
    NTPC Renewable Energy Ltd.
    Azure Power
    JSW Energy
    Sembcorp Green Infra
    Hero Future Energies
    Ayana Renewable Power
    Avaada Energy
    O2 Power
    Amp Energy India
    Continuum Green Energy
    ACME Solar Holdings
  • User Profiles and Energy Demand Mix
  • Regulatory Compliance Mapping
  • Financing Preferences
  • Key Barriers and Enablers
  • Procurement Channels
  • By Installed Capacity (MW), 2025-2030
  • By Value (INR Crore), 2025-2030
  • By Energy Generation (TWh), 2025-2030
  • By Contribution to National Grid (%), 2025-2030
The India green energy market is currently valued at approximately USD 24 billion, supported by over 200 GW of installed renewable capacity and strong regulatory frameworks driving large-scale adoption.
The market is forecasted to grow at around a 9% CAGR between 2024 and 2030, reflecting continued policy support, capacity expansion, and technology advancements in solar, wind, hybrid, and storage applications.
Growth is driven by policy initiatives such as PM KUSUM and PLI, declining component costs, climate commitments, capacity targets, and increasing private investment and consumer demand.
The market faces land acquisition hurdles, grid integration issues, DISCOM financial health, intermittent generation concerns, and the need for financing to scale hybrid, storage, and green hydrogen solutions.
The market is dominated by utility-scale projects in Solar (~42%) and Wind (~25%), driven by auction-based deployment, resource availability, and favourable cost dynamics.
Leading players include Adani Green Energy, ReNew Power, Tata Power RE, Greenko Energy, Azure Power, NTPC RE, JSW Energy, and others that dominate capacity pipelines and project execution.
Product Code
NEXMR5314Product Code
pages
80Pages
Base Year
2024Base Year
Publish Date
June , 2025Date Published
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