India's Solar Surge: 50% Growth in 2025 Positions It as Second-Largest Market
Event summary
- India added 37.5 gigawatts of solar capacity in 2025, a 50% increase from the previous year.
- The 2026 budget targets 45–50 gigawatts of new solar deployments, positioning India as the second-largest solar market globally.
- Solar power costs in India have fallen by 80% since 2010, making it the most cost-effective option for new power installations.
- The EU-India Free Trade Agreement signed in January 2026 is expected to boost trade and collaboration along the PV value chain.
The big picture
India's rapid solar expansion is driven by state funding, tax incentives, and significant cost reductions. The country's strategic positioning as a major sales market and production hub for solar components underscores its growing influence in the global renewable energy landscape. The EU-India Free Trade Agreement further amplifies opportunities for international collaboration and trade.
What we're watching
- Infrastructure Scaling
- The pace at which India can expand its energy infrastructure and storage capacity will determine the sustainability of its solar growth.
- Skilled Workforce Development
- How India addresses the need for highly specialized skilled workers will impact the efficiency and scalability of its solar industry.
- Trade Agreement Impact
- Whether the EU-India Free Trade Agreement can foster meaningful collaboration and trade along the PV value chain remains to be seen.