Over the last five financial years, public sector banks, government-owned/controlled financial institutions, and foreign direct investments have cumulatively invested around ₹7.16 trillion (~$79.13 billion) in India’s renewable energy sector.

Investments have risen from ₹660 billion (~$7.29 billion) in the financial year (FY) 2021 to ₹2.68 trillion (~$29.6 billion) in FY 2025, according to data furnished in Parliament by the Minister of State for New and Renewable Energy, Shripad Yesso Naik.

However, the Ministry highlighted the need for greater investment mobilization in emerging renewable energy sectors, such as energy storage, green hydrogen, offshore wind, and transmission infrastructure.

Quoting an Indian Renewable Energy Development Agency (IREDA) report titled “Investment and Financing in RE and Associated Infrastructure,” Naik said India requires an estimated ₹30.5 trillion (~$337 billion) from FY 2024 until FY 2030 to achieve 500 GW of non-fossil fuel-based power capacity.

To attract more investment in the renewable energy sector, the government allowed 100% foreign direct investment under the automatic route and raised funds through sovereign green bonds.

In another move to increase investments, the Reserve Bank of India enhanced the eligibility limit for priority-sector classification of bank loans to borrowers for renewable energy-based power to up to ₹350 million (~$3.86 million)

As of the second quarter of FY 2026, government-owned IREDA invested ₹199.73 billion (~$2.32 billion) in solar, ₹104.43 billion (~$1.21 billion) in wind, ₹81.91 billion (~$923.69 million) in hydro, and ₹67.56 billion (~$762.13 million) in ethanol projects.

Manufacturing and emerging technologies, including smart meters, green hydrogen, and energy storage, accounted for ₹87.06 billion (~$1.01 billion).

In the same quarter, government-owned PFC’s gross loan assets for renewable energy companies increased by 34.58% year-over-year to ₹810.31 billion (~$9.46 billion) from ₹602.08 billion (~$7.03 billion). The gross loan assets for solar/wind and other renewable energy projects increased by 46.98% YoY to ₹648.4 billion (~$7.57 billion) from ₹441.13 billion (~$5.15 billion).