India's Renewable Energy Surge: 75% of FY26 Capacity Addition from Clean Sources, Total Power Crosses 520 GW

• Published
• By Anupam Nath

India's energy landscape is undergoing a remarkable transformation, driven by aggressive renewable energy adoption. In the first 10 months of FY26 (April 2025 to January 2026), the country added a record 52,537 MW of power generation capacity from all sources, surpassing the previous year's full-year addition of 34,054 MW. This represents an impressive 11% growth in total installed capacity within just 10 months. Renewable energy sources dominated this expansion, contributing approximately 75% of the new capacity. With solar leading the charge, India's push toward sustainable power is accelerating, aligning with national goals for energy security, reduced emissions, and net-zero ambitions by 2070.

Record-Breaking Capacity Addition in FY26

According to the Ministry of Power and Ministry of New and Renewable Energy, the total installed power generation capacity reached 520,510.95 MW (approximately 520.5 GW) as of January 31, 2026. This milestone marks a significant leap from the base at the end of FY25. The addition of 52,537 MW in the April-January period is the highest single-year capacity expansion ever recorded, highlighting accelerated infrastructure development amid rising electricity demand from industrialization, urbanization, and electrification initiatives. Non-fossil fuel capacity now stands at 271,969.33 MW, slightly overtaking fossil fuel-based capacity at 248,541.62 MW, signaling a structural shift toward cleaner energy.

Renewables Lead with 75% Share in New Additions

Renewable energy sources were the primary drivers, adding 39,657 MW—accounting for nearly 75% of the total new capacity. This surge demonstrates the effectiveness of government policies, incentives, and private sector investments in scaling up clean energy. Solar power emerged as the star performer, contributing 34,955 MW, which represents about 88% of the renewable additions and roughly 67% of overall capacity growth. Wind power followed with 4,613 MW, while small hydro and bio-power added less than 100 MW combined. These figures underscore solar's dominance, fueled by falling panel costs, supportive auctions, and schemes like PM Surya Ghar Muft Bijli Yojana.

Breakdown of Other Sources and Thermal Additions

While renewables stole the spotlight, conventional sources also saw contributions. Thermal power (primarily coal-based) added 8,810 MW, large hydro projects contributed 3,370 MW, and nuclear capacity increased by 700 MW. Coal remains crucial for baseload power, supplying around 74% of India's electricity generation despite the renewable push. Fossil fuels continue to provide stability for peak demand and grid reliability, but the rapid renewable integration is gradually reducing reliance on imports and volatile fuel prices.

Installed Capacity Mix as of January 2026

The cumulative picture reveals renewables now form nearly half of India's total installed base. Renewable energy sources account for 263,189.33 MW (about 50.5% of the total), including major shares from solar (140.6 GW cumulative) and wind. Non-fossil fuels overall (including large hydro and nuclear) reach 271,969.33 MW. Fossil fuel capacity stands at 248.5 GW, with coal dominating at around 221 GW. This balance reflects India's pragmatic approach: aggressively expanding renewables while maintaining thermal infrastructure for energy security. Nuclear remains a small but steady component at 8,780 MW.

Challenges and Pending Project Implementation

Despite the impressive additions, challenges persist in execution. Renewable energy implementing agencies, including SECI, NTPC, NHPC, and SJVN, had awarded 42,626 MW of projects by October 2025. However, many lack finalized Power Sale Agreements (PSAs) with procurers, delaying commissioning. Addressing bottlenecks in land acquisition, transmission infrastructure, and financing will be key to sustaining momentum. Storage solutions like batteries and pumped hydro are also gaining traction to manage intermittency and enhance grid stability.

Implications for India's Energy Future

This FY26 performance positions India as a global leader in renewable deployment. The record solar additions align with targets under the National Solar Mission and international commitments at COP summits. Benefits include lower electricity costs over time, job creation in manufacturing and installation, reduced carbon footprint, and greater energy independence. However, coal's continued role highlights the need for a just transition, including reskilling workers and retrofitting plants. As demand grows with electric vehicles and data centers, renewables' share in actual generation (currently lower due to capacity factors) must rise through better integration.

Conclusion

India's achievement in FY26—adding over 52 GW with 75% from renewables—marks a pivotal moment in its clean energy journey. Solar's overwhelming contribution and the crossing of 520 GW total capacity illustrate policy success and investment confidence. While coal ensures reliability, the tilt toward non-fossil sources promises a greener, more sustainable future. Continued focus on implementation, innovation, and infrastructure will help India achieve its ambitious renewable targets and lead the global energy transition. The coming months will be crucial to convert awarded projects into operational assets and maintain this unprecedented pace.