Gujarat sees 50% surge in solar power, becomes India's fastest-growing state in FY25
The state generated 20,219.48 million units (MUs) of solar electricity in FY25, up from 13,468.91 MUs in FY24, according to data tabled in Parliament by the Union ministry of new and renewable energy.
Over just two years, Gujarat nearly doubled its solar output, which stood at 10,335.32 MUs in FY23, signalling its rapid transition to renewable energy. With this performance, the state now ranks second in the country in total solar power generation, behind Rajasthan, which recorded 49,101.62 MUs in FY25.
Policy support, favourable business conditions and growing industrial interest have all contributed to this momentum. Gujarat's Renewable Energy Policy and its focus on decentralised approach, which has led to the adoption of rooftop and solar park models, have played a key role in ramping up capacity.
Kunj Shah, chairman, RE committee, Assocham Gujarat State Council, said, "Residential
rooftop solar adoption
has seen a strong push, especially due to the
PM Surya Ghar Yojana
, which offers subsidies and soft loans through banks. Earlier limited to cities, rooftop installations are now gaining ground in rural areas as well. Industries too are increasingly adding captive capacity.
Global measures like the EU's Carbon Border Adjustment Mechanism (CBAM) have also nudged exporters to decarbonise, further accelerating the shift to solar."
Industry players point to large-scale
solar park investments
across Kutch, Banaskantha and Patan districts as a major factor. Companies are setting up captive solar plants to meet their sustainability goals. Falling panel prices have made the switch to clean energy even more economically viable.
Jai Prakash Shivahare, managing director,
Gujarat Urja Vikas Nigam Ltd
(GUVNL), said, "Gujarat's renewable energy policy is extremely enabling, especially for captive and third-party projects.
There are no capacity limits, and many industries are eager to utilise 100 per cent of their sanctioned allowance. Regions like Kutch and Banaskantha offer land availability, which is a major draw for solar park development."
"Gujarat's supportive policy ecosystem, with its skilled manpower, reliable vendors and suppliers, and lower operating costs, makes it an attractive state for RE developers. This allows companies to quote more competitive tariffs here," he further added. To support the growing capacity, GUVNL is also expanding transmission infrastructure via GETCO with a planned investment of ₹1 lakh crore.
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