Commercial and Industrial Corporates Fuel Record 51 GW of Renewable Energy Capacity Additions in FY26 Amidst Slowing Power Demand Growth

India's Renewable Energy Capacity Surges to New High in FY26

India's renewable energy capacity reached a new high in FY26, driven largely by corporate and industrial consumers. According to HSBC Global Investment Research, the country added around 51 GW of renewable capacity in FY26, with the C&I segment alone contributing more than 20 GW of this addition.

As of March 2026, India's total renewable capacity stood at 223 GW, accounting for 42% of the country's total installed power capacity of 533 GW. Notably, non-fossil fuel capacity has now surpassed thermal capacity. The share of renewables in total power generation also increased, reaching 17% in FY26, up from 14% in FY25. In March 2026, their share hit a monthly record of 16%.

Despite the growth in renewable energy capacity, overall power demand recorded its weakest growth in years, standing at just 0.9% year-on-year for the full year FY26. This was the lowest since the Covid-affected FY21. March demand growth was flat at 1.7%, while peak demand reached 238 GW, up 1.3% year-on-year.

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However, demand showed early signs of recovery in April, growing 3.3% year-on-year in the first 20 days of the month. On the supply side, thermal generation declined 5% year-on-year, while coal stocks at power plants improved to a healthy 19 days, equivalent to 59 million tonnes as of mid-April.

Solar generation grew 20% and wind generation grew 26% year-on-year in FY26. Auction activity slowed in FY26 after a strong FY25, but actual project commissioning remained robust.

HSBC noted that the strong C&I appetite was the standout theme of the year, pointing to rising corporate demand for green power through captive and group captive routes. This trend offers better visibility for renewable developers, reduces reliance on state discoms, and highlights a clear shift toward green energy backed by corporate India.

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