India's Solar Capacity Reaches 168 GW, a 60-Fold Jump in 12 Years

India's installed solar capacity has hit 168 gigawatts (GW), according to a report by Equitypandit. That's a 60-fold increase from 2.8 GW in 2014, when the current government took office. The milestone comes as the country pushes toward its 500 GW non-fossil target by 2030.

The growth has been steady. In the last 12 months, India added 24 GW of solar, the highest annual addition so far. Most of that came from utility-scale projects in Rajasthan, Gujarat, and Karnataka. Rooftop solar also picked up, helped by the PM Surya Ghar scheme, which subsidises residential installations.

What's driving the surge

Cheap panels. Global module prices have fallen by more than half since 2022, making solar the cheapest source of new power in most of India. Domestic manufacturing has also expanded, with several companies setting up module and cell lines under the production-linked incentive scheme. That's cut reliance on Chinese imports, though cells and wafers still come mostly from abroad.

State auctions have kept the pipeline full. Solar tariffs have stabilised around Rs 2.50 per unit, competitive with coal. Developers say the demand is there, but execution is the bottleneck.

Land and grid still bite

Land acquisition remains messy. In states like Maharashtra and Tamil Nadu, farmers often resist selling land for solar parks, and clearances take years. Transmission is another problem. Many solar-rich states lack the evacuation infrastructure to move power to demand centres. The result: curtailment. In Rajasthan, some plants are asked to back down during peak generation hours.

"We have the capacity, but not always the wires," said a Mumbai-based renewable energy analyst who did not want to be named. "The grid has to catch up."

Storage is the next big test. Solar only works when the sun shines. To meet evening demand, India needs batteries. Several tenders for battery energy storage systems have been floated, but costs are still high. Pumped hydro is another option, though projects are slow to build.

What it means for 2030

At 168 GW, India is roughly a third of the way to its 500 GW non-fossil goal. The government expects solar to do most of the heavy lifting. But hitting the target means adding about 40 GW of solar every year for the next six years. That's nearly double the current pace.

Coal isn't going away. It still provides about 70% of India's electricity. Solar's rise has slowed coal's growth, but not reversed it. For now, the two coexist. The question is how fast the grid can absorb more sun.