Sector snapshot
India reached a 50% non-fossil share of installed capacity in June 2025, five years ahead of its 2030 commitment. By 31 July 2026 non-fossil capacity, including hydro and nuclear, stood at 300.50 GW, over 54% of the installed total (PIB factsheet on energy, Aug 2026). FY2025-26 was a record year: 55.29 GW of non-fossil capacity was added, against 29.5 GW in FY2024-25 (PIB (MNRE), 8 Apr 2026). The target is 500 GW of non-fossil capacity by 2030.
Foreign direct investment follows the build-out. FDI equity into non-conventional energy was USD 3.0 bn in FY2025-26 and USD 24.9 bn cumulatively from April 2000 to March 2026 (DPIIT FDI Fact Sheet, Mar 2026).
Four structural facts shape the sector for a foreign investor:
| Theme | What the sources say |
|---|---|
| Tenders of 50 GW a year to FY2027-28 | Under MNRE’s bidding trajectory, SECI, NTPC, NHPC and SJVN issue bids for 50 GW of renewable capacity a year from FY2023-24 to FY2027-28, with at least 10 GW of wind each year. |
| Storage need of 60.63 GW by 2029-30 | CEA estimates that 41.65 GW of battery storage and 18.98 GW of pumped storage will be needed by 2029-30. Viability gap funding and transmission-charge waivers support early projects (PIB (MoP), 3 Feb 2026). |
| A manufacturing base at scale | ALMM-listed solar module capacity reached about 144 GW a year in 2025, with about 81 GW added that year; about 24 GW of cell capacity was on ALMM List-II by December 2025. Wind turbine capacity was about 24 GW in March 2026 (PIB (MNRE), 29 Dec 2025 and 8 Apr 2026). |
| New areas opened in 2025–26 | The SHANTI Act 2025 allows licensed private participation in nuclear power; Budget 2026-27 proposed ₹20,000 crore for CCUS; and floating solar with storage got a ₹5,070 crore scheme in July 2026. |
Where the opportunity is
Foreign capital is going into six parts of the energy transition. Each segment carries the scheme or rule that matters most to it.
| Segment | Scheme tag | What is happening |
|---|---|---|
| Utility-scale solar, wind and hybrids | 50 GW of bids a year | Solar capacity reached 164.59 GW and wind 58.14 GW by 31 July 2026. About 28 GW of additional wind is under implementation, and central agencies tender solar, wind, hybrid and firm and dispatchable (FDRE) projects. |
| Battery and pumped storage | VGF and ISTS waiver | A second viability gap funding scheme (June 2025) supports 30 GWh of battery storage at up to ₹18 lakh per MWh from ₹5,400 crore. Co-located batteries commissioned by June 2028 get a 12-year ISTS charge waiver; pumped storage awarded by June 2028 is also covered. |
| Green hydrogen and ammonia | Mission ₹19,744 crore | SIGHT incentives have been awarded for 450,000 tonnes a year of green hydrogen, and SECI discovered prices for 724,000 tonnes a year of green ammonia for fertiliser units. About 8,000 tonnes a year of capacity was commissioned by February 2026. |
| Solar, wind and battery equipment | PLI and ALMM | PLI awards cover 48,337 MW of integrated module capacity. ALMM module capacity was about 144 GW a year in 2025 and wind turbine capacity about 24 GW in March 2026. 10 GWh of the ACC battery PLI is earmarked for grid storage. |
| Rooftop, distributed and C&I supply | Open access from 100 kW | Distributed solar added 16.3 GW in FY2025-26, including 8.7 GW of rooftop solar. PM Surya Ghar reached 5.16 million households by 12 August 2026. Consumers with 100 kW or more of contract demand can buy green power through open access. |
| Nuclear, offshore wind and CCUS | Early stage | The SHANTI Act 2025 lets licensed Indian companies build nuclear plants; FDI in atomic energy is still prohibited, with an FDI policy under consultation. Offshore wind support (₹7,453 crore for 1 GW, including ports) drew no bids in its 2025 tenders. Budget 2026-27 proposed ₹20,000 crore for CCUS. |
The FDI rules page also covers oil and gas, refining, mining and power exchanges, which sit outside these six segments but inside the same policy.
Note: Capacity and scheme figures are as of 1 October 2026 and come from the sources listed on each page. Platform investment amounts quoted on the recent investments page are deployment plans, not completed projects.
How this guide is organised
- Recent investments: the foreign platforms, acquisitions and joint ventures announced in 2024–26, as public examples.
- FDI rules: caps and routes for renewables, other power, power exchanges, oil and gas, mining and atomic energy, plus the land-border rule.
- Regulators and registrations: tender award and PPA, connectivity and GNA, ALMM, BIS, state registration, open access and the nuclear licence.
- Central incentives: PLI, SIGHT, viability gap funding, PM Surya Ghar, PM Surya Sarovar, the ISTS waiver, RCO, the nuclear mission, CCUS and Samudra Manthan, each with its status.
- State incentives: Rajasthan, Uttar Pradesh, Tamil Nadu, Maharashtra and Karnataka.
- Tax and zones: the 5% GST rate, Budget 2026-27 customs relief, the corporate tax position and the February 2026 ECB rules.
- Set-up roadmap: the nine steps from project company to commercial operation, with entry vehicles and incorporation.
- What to watch: power sale agreements, curtailment, the ISTS waiver clock, ALMM lists, land-border ownership and nuclear.
- Recent changes: the timeline from September 2025 to July 2026.
- Sources: every reference the brief cites.
For the generic rules that apply across sectors, see FDI routes and caps, corporate tax and the incentive tracker.
What to check next
- Decide which of the six segments you are entering; the tender, equipment and incentive paths differ for a developer, a C&I supplier, an equipment maker and a hydrogen producer.
- Confirm the FDI cap and route for your exact activity, including whether any owner in the chain is from a land-border country.
- Check the status of each scheme you plan to rely on against the central incentives page and the authority’s current guidelines; several are closed or awarded.
- Read the regulators page before planning a timeline: no standard timelines apply to tender, land and grid steps.