Removal of capacity limits for captive and third-party solar projects has unlocked large-scale adoption, especially in energy-intensive sectors

Gujarat has emerged as India’s fastest-growing state in solar energy, registering a sharp 50 per cent surge in solar power generation in FY25. As per the Ministry of New and Renewable Energy, Gujarat generated 20,219 million units (MUs) of solar electricity up from 13,468 MUs in FY24 and 10,335 MUs in FY23 marking a near doubling of output in two years. The state now trails only Rajasthan, which led with 49,101 MUs in FY25.

Experts attribute Gujarat’s growth to proactive policy, strong industrial uptake, and infrastructure investment. The state’s Renewable Energy Policy has fostered both utility scale solar parks and decentralised rooftop systems, particularly under the PM Surya Ghar Yojana, which offers subsidies and loans to households.

Removal of capacity limits for captive and third-party solar projects has unlocked large-scale adoption, especially in energy-intensive sectors. Land-rich districts like Kutch and Banaskantha are powering a solar boom, supported by a Rs. 1 lakh crore investment in transmission infrastructure.
Industry players are increasingly turning to solar to meet decarbonisation goals amid tightening global norms like the EU’s Carbon Border Adjustment Mechanism. Falling solar module prices and Gujarat’s cost-efficient supply chains have made clean energy a commercially attractive choice.

With large scale projects gaining traction across western Gujarat, state officials are confident the momentum will continue. Gujarat’s solar success story reflects not just environmental ambition but also its emergence as a competitive hub in India’s renewable energy landscape.