Industry News

India’s Solar Boom Holds Coal Use in Check: A Turning Point for Renewable Power

In a landmark achievement for India’s energy transition, the country has witnessed a dramatic surge in solar power generation during the first four months of 2025. From January to April, India produced a staggering 57.8 terawatt-hours (TWh) of solar electricity, marking a 32.4% increase compared to the same period in 2024. This surge allowed solar power to capture a 10% share of the total electricity mix for the first time in Indian history.

More significantly, coal-fired power generation during the same period grew by only 1.5% year-on-year, a marked slowdown compared to previous years. Gas-based power generation, on the other hand, saw a steep decline of 27%, indicating that solar and other renewables are increasingly replacing fossil-based sources.

The growth in solar output was driven by a combination of large-scale utility projects and rooftop installations. Government policies such as the PM-Kusum Scheme and subsidies for residential rooftop solar have played a key role. Additionally, improved grid integration and declining solar panel costs have contributed to the scalability of solar across states.

This milestone is not just a symbolic victory for clean energy advocates but a concrete indication that India is moving toward its 2030 target of having 500 GW of non-fossil fuel-based capacity. According to energy analysts, India could witness an even larger shift in the power mix during the monsoon season when hydroelectric output is expected to increase.

Why It Matters:

  • Reinforces India’s commitment to its COP26 targets.
  • Reduces dependency on fossil fuels.
  • Encourages investment in solar manufacturing and grid infrastructure.

What’s Next: India will likely push more aggressive policies for battery storage and solar-wind hybrid models to ensure 24/7 renewable power reliability. Private sector participation is also expected to rise in rooftop solar and floating solar plants.

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