NTPC, Tata Power, Adani Green, Waaree Energies Shares in Focus as India's $100 Billion Grid Push Accelerates Solar Boom

India is rapidly emerging as a global clean energy powerhouse, backed by an ambitious $100 billion (around ₹8.6 lakh crore) investment to strengthen its power transmission infrastructure and energy storage network. The massive investment comes as the country experiences record solar capacity additions, accelerates domestic solar manufacturing, and moves closer to becoming the world's second-largest solar growth market after China.

India added a record 44 GW of solar capacity during FY2025-26, taking its total installed solar capacity to 154 GW. The rapid expansion has transformed India into one of the fastest-growing renewable energy markets globally. However, transmission bottlenecks and grid congestion have prevented a significant portion of solar power from reaching consumers, prompting the government to launch one of the world's largest electricity grid expansion programs.

India's Solar Capacity Continues to Break Records

India's renewable energy transition has accelerated significantly over the past few years. Supported by government incentives, declining solar panel costs, and rising electricity demand, the country has become the world's second-largest market for annual solar capacity additions, behind only China.

During FY2025-26, India installed 44 GW of new solar capacity, taking the country's cumulative installed solar capacity to 154 GW, making it the third-largest solar power producer globally after China and the United States.

Industry estimates suggest India's solar installations are growing at nearly 40% CAGR, with installed capacity expected to double again before the end of this decade.

India's Solar Growth Snapshot

$100 Billion Grid Modernisation Plan

While solar generation has expanded rapidly, India's electricity transmission network has struggled to keep pace.

Large solar parks located in states such as Rajasthan and Gujarat often generate more electricity than existing transmission infrastructure can carry, resulting in significant power curtailment during peak sunlight hours.

To address this challenge, the government is investing nearly $100 billion in expanding and modernising the national electricity grid by 2032.

The investment will focus on:

• New transmission corridors
• Green Energy Corridors
• Battery Energy Storage Systems (BESS)
• Pumped Hydro Storage (PHS)
• Smart grid and digital scheduling systems
• Flexible thermal power integration

The objective is to transport renewable energy efficiently from generation hubs to industrial and urban demand centres while improving overall grid stability.

Domestic Solar Manufacturing Gains Momentum

India is also rapidly expanding its domestic solar manufacturing ecosystem to reduce dependence on imports.

Government initiatives such as the Production Linked Incentive (PLI) Scheme and the Approved List of Models and Manufacturers (ALMM) have encouraged manufacturers to increase local production of high-efficiency solar modules and cells.

The country's annual solar cell manufacturing capacity has now reached approximately 30 GW, with further expansion expected over the coming years.

These initiatives aim to strengthen India's renewable energy supply chain while supporting exports and reducing reliance on imported equipment.

Khavda Solar Park to Become World's Largest

One of India's biggest renewable energy projects is the Khavda Renewable Energy Park in Gujarat.

Spread across nearly 726 square kilometres, the project is expected to become the world's largest solar park, with a planned generation capacity of 30 GW.

Once fully operational, the project will be capable of generating enough electricity to power millions of households while significantly contributing to India's clean energy targets.

Battery Storage and Pumped Hydro to Balance Renewable Power

Recognising that solar generation is available primarily during daylight hours, India is simultaneously investing heavily in large-scale energy storage.

Among the major initiatives:

• Rajasthan is developing a 5 GW Battery Energy Storage System (BESS).
• India targets over 100 GW of Pumped Hydro Storage (PHS) capacity by 2047.
• Projects in Tamil Nadu, Madhya Pradesh, and several private developers are expected to improve grid flexibility and reduce renewable energy curtailment.

Energy storage will allow surplus daytime solar electricity to be supplied during evening peak demand, improving overall grid efficiency.

Coal's Share Expected to Decline Gradually

Although coal currently contributes nearly 70% of India's electricity generation, renewable energy is steadily increasing its share.

Industry forecasts indicate coal's contribution could decline to below 50% by 2035 as solar capacity continues expanding and renewable electricity becomes increasingly cost competitive.

The International Energy Agency (IEA) expects solar energy to meet nearly half of India's incremental electricity demand growth through 2030, highlighting the sector's strategic importance.

Market Analysis

India's renewable energy sector is entering a structural growth phase supported by strong policy backing, rising domestic electricity demand, and large-scale infrastructure investments. The combination of solar manufacturing expansion, transmission upgrades, and energy storage development is expected to strengthen the country's energy security while creating significant opportunities across the renewable energy value chain.

Companies involved in solar modules, power transmission, battery storage, engineering, EPC services, and grid infrastructure could benefit from the government's long-term clean energy investment plans. Successful execution of transmission projects will also be crucial in reducing renewable energy curtailment and improving project economics.

What Should Investors Watch?

Investors should closely monitor the progress of India's transmission expansion projects, battery storage deployments, domestic solar manufacturing capacity additions, renewable energy policy support, and execution of large-scale solar parks. Grid modernisation and storage infrastructure are expected to remain key enablers of India's next phase of renewable energy growth.

Key Takeaways

Why is India investing $100 billion in its power grid?

The investment aims to expand transmission infrastructure, improve grid flexibility, integrate renewable energy, and reduce solar power curtailment.

How much solar capacity did India add in FY2025-26?

India installed a record 44 GW of new solar capacity during FY2025-26.

What is India's current installed solar capacity?

India's total installed solar capacity has reached 154 GW, making it the world's third-largest solar market.

What is the Khavda Solar Park?

Khavda in Gujarat is being developed as the world's largest solar park with a planned capacity of 30 GW.

What policies are supporting India's solar manufacturing?

Government initiatives such as the Production Linked Incentive (PLI) Scheme and the Approved List of Models and Manufacturers (ALMM) are driving domestic solar manufacturing growth.