The share of renewable sources in the country's energy system has reached a turning point. The country's overall electricity generation was 3.6% higher at 48,407 crore units in the three months to September 2025, according to an analysis by the Central Electricity Authority and the Institute for Energy Economics and Financial Analysis. Strong contributions from hydro, solar, and wind energy alone offset the decline registered in coal and nuclear power. Total installed capacity reached 500.9 GW, with 51.1% of this capacity now dependent on non-fossil sources.

A good monsoon, strong hydropower generation, and the expansion of solar and wind capacity led to a historic surge in power generation. Renewable energy production rose 18.6% in the third quarter, offsetting a 1.6% decline in fossil fuel-based generation and an 18.6% decline in nuclear power.

This means that affordable renewable electricity is rapidly replacing expensive coal- and nuclear-based generation on the grid. India recorded its highest capacity expansion in July-September.

Coal-based capacity was added by 2,760 MW. Solar accounted for the highest share of this new addition, accounting for 69%. Developers completed projects before higher interstate transmission charges came into effect in July, driving the acceleration in capacity addition. 38,887 MW of new capacity was added in January-September, up 59.4% from the same period in 2024. Renewable energy has become the focus of capacity expansion. Investment in renewable energy in July-September reached $5.23 billion, double the previous quarter. The total investment was $18 billion.