A detailed report by CNBC TV18, published on 20 April 2026, confirmed that India had overtaken Germany and Japan to become the world’s third largest renewable energy market (installed capacity, excluding large hydro), behind only China and the United States. As of March 2026, India’s total renewable capacity (solar, wind, biomass, small hydro) stood at 213 GW. China led with 1,260 GW, followed by the US at 320 GW.

The Indian growth has been spectacular: just five years ago (March 2021), India had only 94 GW of renewable capacity. The tripling is attributed to: (i) aggressive state level solar policies, notably in Gujarat, Rajasthan and Tamil Nadu; (ii) the Production Linked Incentive (PLI) scheme for solar PV modules, which has attracted USD 12 billion in manufacturing investment; (iii) a dramatic fall in solar module prices (global prices dropped 35% in 2025 due to overcapacity); and (iv) the emergence of large scale hybrid wind solar storage projects.

The CNBC TV18 report notes that March 2026 alone saw a record 6.65 GW of new solar capacity added – more than the UK’s entire installed solar base. It also highlights the role of “open access” solar (where commercial and industrial consumers buy directly from solar farms) which now accounts for 32% of new capacity.

However, the report also flags structural challenges. While capacity is third largest, actual generation from renewables is still much lower (about 24% of total electricity) because solar and wind have low capacity factors (18 24%) and large hydro is counted separately. Moreover, India’s grid infrastructure is struggling to integrate variable renewables; curtailment rates in wind rich Tamil Nadu reached 12% in early 2026. The report concludes that “India has won the capacity race, but the generation race requires a grid revolution.”

On the export front, India’s solar module manufacturing has become globally competitive. Indian made modules now command a 12% share of the US import market (up from 2% in 2023) and are also gaining ground in Europe. The government has set a target of 100 GW of domestic cell and module manufacturing capacity by 2028.