Renewable energy: Gujarat, Rajasthan account for over half of investments in India since 2020

Gujarat led the tally attracting an investment of over ₹1.17 lakh crore accounting for almost one-third of the investments on a pan-India basis between 2020 and 2024. The west Indian State has an installed RES capacity of 32,924 megawatts (MW) as of February 2025.
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AMIT DAVE

Gujarat and Rajasthan, which cumulatively account for more than one-third of India’s installed renewable energy sources’ (RES) capacity, attracted over half of the investments that poured into the sector in the last five years beginning 2020.

The total investments attracted by the RES sector—Solar, Wind, Small Hydro, Large Hydro, Nuclear and Bio—almost hit ₹4 lakh crore during the last five years, ending 2024 calendar year, as per the data from the Ministry of New & Renewable Energy.

Gujarat led the tally attracting an investment of over ₹1.17 lakh crore accounting for almost one-third of the investments on a pan-India basis between 2020 and 2024. The west Indian State has an installed RES capacity of 32,924 megawatts (MW) as of February 2025.

Rajasthan, which has a RES installed capacity of 33,468 MW, witnessed an investment of ₹96191 crore in the last five years accounting for a little over 24 per cent of the total investments.

Together both the states account for over 53.5 per cent of the ₹3,99,397 crore attracted by the RES sector in the last five years since 2020.

Best States

Tamil Nadu attracted the third highest (₹39,431 crore) investments in the sector since 2020. The south Indian state has a total installed RES capacity of 24,635 MW, which accounts for 11.48 per cent of the pan-India capacity.

Similarly, Maharashtra attracted investments worth around ₹26,526 crore in last five years till 2024, which is 6.64 per cent of all the investments made across the States and union territories. Maharashtra’s installed RES capacity is around one-tenth of the total 215 GW capacity pan-India.

Karnataka is at the fifth spot with investments worth ₹23,104 crore in last five years with a 5.79 per cent share out of the total. The south Indian state has a RES capacity of 23,075 MW.

The investment in renewable energy sources is largely in states which have high potential for solar, wind, hydro, etc. For instance, the investments in the top five states accounted for more than one-third of the investments pan-India (2020-2024).

These States also have more than 60 per cent share of the RES installed capacity in the country.

Solar shines

Among all the RES, solar power has the highest potential for growth. For instance, cumulative investments in star power in the last five years, till 2024, stood at around ₹2.64 lakh crore, which is about 66 per cent of the total investments in the RES sector.

Rubix Data Sciences said India’s solar power sector has witnessed an extraordinary 25-times increase (38 per cent CAGR) in cumulative installed capacity over the past decade, rising from 3.99 gigawatts (GW) in FY15 to 100 GW in FY25.

Consequently, its share in the total installed capacity of renewable energy has increased from 10 per cent in FY15 to more than 60 per cent in FY25, the risk management services provider added.

As of January 31, 2025, India’s total solar capacity installed stood at 100.33 GW, with 84.10 GW under implementation and an additional 47.49 GW under tendering. In 2024, India added a record 24.5 GW of solar capacity, more than doubling the installations from 2023, Rubik’s said.

Published on April 21, 2025