Solar Dominates India’s Clean Energy Boom, Driving $11.8 Billion Investments in H1 2025 – EQ
In Short : India witnessed a major surge in clean energy investments in H1 2025, totaling $11.8 billion, with solar projects attracting nearly 77% of the inflows, a report revealed. The strong interest highlights investor confidence in India’s solar sector, supported by favorable policies, global capital, and the country’s ambitious renewable energy targets driving accelerated transition.
In Detail : India’s clean energy sector recorded impressive growth in the first half of 2025, attracting $11.8 billion in investments, according to a recent report. Of this, solar energy accounted for nearly 77% of the total inflows, showcasing its dominant role in the country’s green transition. This momentum reflects the global investor confidence in India’s renewable market.
The report highlights that solar’s share outpaced other clean energy sources, positioning it as the backbone of India’s energy transition. Strong policy measures, competitive tariffs, and rising corporate demand have made solar projects highly attractive. With large-scale utility projects and rooftop solar both gaining traction, the segment continues to lead.
Foreign investors have shown keen interest in India’s solar sector, drawn by its massive potential and clear policy direction. International capital is flowing into both solar manufacturing and project development, aligning with India’s target of 500 GW of renewable capacity by 2030.
The government’s push through schemes like PM Surya Ghar for rooftop solar has also boosted adoption among households. Distributed solar energy not only reduces grid dependency but also supports energy affordability. Analysts believe this growing adoption could further accelerate investment inflows in the sector.
Wind energy, hydropower, and bioenergy together accounted for a smaller portion of the total clean energy investments. While wind projects are picking up with hybrid models, they are yet to reach solar’s scale. Nonetheless, diversification of clean energy sources remains essential for grid stability and energy security.
Experts say India’s growing appeal lies in its transparent regulatory framework, improving infrastructure, and ambitious climate goals. Solar, being cost-competitive and scalable, is expected to remain the most preferred technology for investors in the coming years. The sector has already created strong momentum for industrial growth and job opportunities.
Corporate power purchase agreements (PPAs) are also contributing significantly to solar growth. Companies seeking to reduce carbon footprints and meet sustainability targets are increasingly signing long-term deals. This trend not only boosts demand for solar energy but also ensures steady returns for investors.
The report stresses that the coming years will be crucial for balancing investment across technologies. Storage and green hydrogen will require greater funding to complement solar and ensure round-the-clock clean power supply. Investors are likely to diversify once these technologies mature and costs decline further.
Overall, India’s clean energy inflows reflect a robust trajectory with solar at the forefront of growth. With global momentum shifting towards renewables, India has established itself as a key destination for green capital. The focus now will be on sustaining this momentum while broadening investments beyond solar to build a resilient, diversified energy ecosystem.
