MNRE Confirms No Advisory to Stop Renewable Energy Financing

The Ministry of New & Renewable Energy (MNRE) has clarified that it has not issued any advisory asking banks or financial institutions to pause or stop funding new renewable energy projects. Reports claiming otherwise are incorrect.

MNRE Reaffirms India’s Solar Manufacturing Growth

MNRE has called for a calibrated and well-informed financing approach across the solar manufacturing ecosystem. The goal is to support sustainable long-term growth and strengthen India’s position in the global solar value chain.

The Ministry shared data with the Department of Financial Services and major NBFCs like PFC, REC, and IREDA. This information highlights India’s current solar manufacturing capacity, including:

• Solar modules
• Solar cells
• Ingots and wafers
• Polysilicon
• Solar glass
• Aluminium frames

The purpose is to help lenders understand sector-wide capacity and move beyond financing only solar module factories. MNRE wants financial institutions to also support upstream manufacturing stages and essential ancillaries.

India’s Renewable Energy Progress

India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources — five years ahead of its Nationally Determined Contribution (NDC) target under the Paris Agreement.

As of 31 October 2025:

• Non-fossil fuel installed capacity: 259 GW
• New additions in FY 2025 up to October: 31.2 GW

Solar Manufacturing Capacity Expands Rapidly

Government support has helped India grow from 2.3 GW of solar module manufacturing capacity in 2014 to nearly 122 GW today, as listed in MNRE’s ALMM (Approved List of Models and Manufacturers).

This growth has been driven by:

• PLI Scheme for High Efficiency Solar PV Modules
• Policy measures offering a level playing field to domestic manufacturers
• Strong collaboration between industry and State Governments

This progress strengthens India’s goal of reaching 500 GW of non-fossil fuel capacity by 2030 and contributing to global clean energy transition efforts.

Government Commitment to a Strong Solar Future

The Government of India remains committed to building a complete and competitive solar PV manufacturing ecosystem. The focus includes:

• Expanding domestic manufacturing across all stages
• Improving infrastructure and supply chain support
• Encouraging innovation and R&D
• Ensuring a balanced and sustainable industry growth

MNRE will continue working closely with industry stakeholders so India’s solar sector stays inclusive, competitive, and future-ready.