India has witnessed one of the fastest expansions of solar energy in the world over the past decade. From an installed solar capacity of around 3 GW in 2014, the country has grown to 162.15 GW as of June 30, 2026, making solar the largest contributor to India’s renewable energy capacity. The latest milestone comes with the approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), which seeks to further accelerate the country’s clean energy transition through floating solar projects backed by energy storage.
A new push through floating solar
Approved by the Union Cabinet on Friday, the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) aims to develop 5,000 MW of floating solar photovoltaic capacity with co-located Energy Storage Systems (ESS).
The scheme has an outlay of ₹5,070 crore and will be implemented between FY 2026-27 and FY 2030-31. It proposes a minimum storage capacity of 10,000 MWh, enabling states to better manage peak electricity demand while improving grid stability.
Unlike conventional solar parks, the projects will utilise reservoirs and industrial water bodies, reducing dependence on scarce land resources. According to the National Institute of Solar Energy (NISE), India has an estimated 102.18 GW floating solar potential across reservoirs and inland water bodies. The initiative is expected to reduce nearly 10 million tonnes of carbon dioxide emissions annually, generate 16,000-17,000 full-time equivalent jobs, and increase India’s floating solar capacity from around 700 MW to nearly 5,700 MW.
A decade of rapid expansion
India’s solar expansion has been driven by sustained policy support, infrastructure development, domestic manufacturing and growing public participation.
The country added 37 GW of solar capacity in calendar year 2025, emerging as the world’s second-largest solar growth market and surpassing the United States in annual solar additions.
The momentum continued during FY 2025-26, when India added a record 44.61 GW of solar capacity—almost double the 23.83 GW added during FY 2024-25. Total non-fossil fuel capacity reached 283.46 GW, including 274.68 GW from renewable energy sources, while annual non-fossil additions touched an all-time high of 55.29 GW.
Policy framework behind the growth
The solar expansion has been supported by multiple government initiatives over the years.
The National Solar Mission, launched in 2010, laid the foundation for large-scale deployment. This was followed by initiatives such as the Solar Parks Scheme, the Green Energy Corridor Programme, competitive bidding mechanisms and Renewable Purchase Obligations (RPOs), which require electricity distribution companies to procure a fixed share of renewable energy.
India has also aligned its solar ambitions with its international climate commitments. Under the Panchamrit announced at COP26, the country aims to achieve 500 GW of non-fossil fuel capacity by 2030 and reach net-zero emissions by 2070. Mission LiFE has complemented these efforts by encouraging environmentally sustainable lifestyles.
Manufacturing gains momentum
Alongside capacity addition, India has significantly expanded its domestic solar manufacturing base.
Solar module manufacturing capacity has grown from 2.3 GW in 2014 to around 172 GW as of March 31, 2026.
This growth has been supported by the Production Linked Incentive (PLI) Scheme for high-efficiency solar photovoltaic modules and the Approved List of Models and Manufacturers (ALMM), which promotes quality standards and domestic manufacturing while reducing import dependence.
Solar reaches households and farms
India’s solar transition has increasingly moved beyond utility-scale projects.
The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, has become the world’s largest rooftop solar programme. As of June 2026, more than 43 lakh households had adopted rooftop solar systems, while over 7.7 lakh households had reported zero electricity bills. Central financial assistance of ₹14,771.82 crore had been disbursed till December 2025.
In the agriculture sector, the PM-KUSUM scheme has promoted solar-powered irrigation through decentralised power plants and solar pumps. Nearly 11.49 lakh off-grid solar pumps have been installed, over 15.89 lakh agricultural pumps have been covered through feeder-level solarisation, and 1,726 MW of decentralised solar capacity has been commissioned, benefiting more than 21.77 lakh farmers.
Strengthening infrastructure
To facilitate large-scale deployment, the government has approved 54 solar parks with a combined sanctioned capacity of 39,188 MW across the country.
Among the largest is Rajasthan’s Bhadla Solar Park, which has an installed capacity of 2,245 MW and has played a significant role in bringing down solar tariffs through competitive bidding.
Supporting these parks is the Green Energy Corridor Programme, which had enabled evacuation of 24,567.8 MW of renewable energy by February 2026 and is expected to facilitate around 44 GW of renewable power through strengthened transmission networks.
Growing global role
India’s leadership in solar energy has also expanded internationally.
The country co-founded the International Solar Alliance (ISA) with France in 2015 to promote global solar cooperation. It has also championed the One Sun One World One Grid (OSOWOG) initiative to encourage cross-border renewable energy trade and interconnected electricity grids.
During its G20 Presidency, India also helped build consensus on tripling global renewable energy capacity by 2030, reinforcing its position as a key player in the global clean energy transition.