America's clean energy growth is lagging behind India's rapid expansion
In a significant shift in the global energy landscape, India has surpassed the US in renewable energy generation. This rapid advancement is primarily due to ambitious government targets, strong policy support, and a surge in wind and solar capacity installations.
India aims to achieve 500 GW of non-fossil fuel capacity by 2030, nearly double the current capacity. In the first half of 2025 alone, the country connected 22 GW of wind and solar, boosting its renewable output by 24.4%.
Key factors contributing to this growth include government schemes promoting renewable energy deployment, such as the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) for solar pumps, PM Surya Ghar providing subsidies to install rooftop solar panels, the Grid Connected Rooftop Solar program, and the Green Energy Corridor Scheme for grid integration.
Regulatory measures that ease project approvals and support clean energy expansion, as well as easing inflation, have encouraged wind and solar developers to accelerate capacity additions.
Reduced coal-fired generation due to milder summers and slower economic growth has led to lower reliance on coal, helping renewables now constitute a higher share of the overall electricity supply, surpassing thermal power.
Investment in grid upgrades and energy storage is ongoing to handle increasing renewable integration, ensuring stable and reliable power supply systems despite the variability of wind and solar generation.
Despite this momentum, India still faces challenges such as continued high fossil fuel consumption, indicating further efforts are needed to shift fully to zero-emission energy sources.
Assuming the pace is maintained, India should surpass the 40GW of renewable energy that the US government expects this year. The faster rollout of renewables in India, combined with declining pollution from China and the rich world, means the global picture is improving faster than expected.
Solar panel manufacturing in India has been ramping up to the point where it runs far in excess of domestic demand, at 91GW. Easing inflation in India has allowed the Reserve Bank of India to cut its policy rate by a percentage point since December, reducing the price of renewables.
In the first half of this year, India connected 22 gigawatts (GW) of wind and solar energy, enough to power nearly one-tenth of the grid. Renewable power is cheaper in India, and more suited to the aspirations of the billions in the global south who want a better, healthier life.
It is expected that India will overtake the US in renewable energy this year, making it a new clean energy superpower. The total clean power (including nuclear and hydroelectric) that is either operating or under construction in India is approximately 414GW.
Retirements of old coal-fired power plants mean that fossil-generation capacity has actually declined slightly so far this year. Electricity generation rose 0.8% in the first half of this year despite the drop in fossil-fired power generation.
However, a waiver on transmission charges for wind and solar energy in India expired at the end of last month, causing developers to rush to complete their builds in time to get the financial benefit. A group of US competitors sought anti-dumping measures last week to keep Indian products out of their market.
Despite these challenges, India's rapid advancement in renewable energy is a promising step towards a cleaner, healthier future for the country and the world.
- India's advancement in renewable energy, driven by government schemes like PM-KUSUM and PM Surya Ghar, regulatory measures, and investments in grid upgrades, is leading to a significant shift in the global environmental-science industry, as demonstrated by surpassing the US in renewable energy generation.
- Renewable energy finance, particularly in India, has been spurred by the reduction in pollution from China and the rich world, the declining cost of renewables due to easing inflation, and increasing renewable capacity additions by wind and solar developers.
- With over 414GW of clean power (including nuclear and hydroelectric) either operating or under construction, India's rapid growth in renewable energy is expected to lead to its overtaking the US this year, making it a new leader in the global fight against climate-change, contributing significantly to a cleaner, healthier environment for the world.
