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In brief
India’s journey toward a sustainable energy future has gained remarkable momentum over the past decade. From 2017 to 2025, the country witnessed a surge in energy transition investments, with deal volumes rising from 134 to 230 and total deal value peaking at US$13.6 billion in 2023. This growth reflects a strong investor appetite for climate-aligned sectors, bolstered by India’s net-zero commitment by 2070 and a suite of supportive government policies.
At the heart of this transformation lies renewable energy, which continues to attract the lion’s share of capital. Solar power and wind projects have led the charge, supported by robust infrastructure and a maturing supply chain. In fact, renewable energy investment accounted for 83% of private equity (PE) deal volume and 89% of deal value between 2017 and 2025, underscoring investor confidence in mature, scalable technologies.
However, the landscape is evolving. The rise of e-mobility—electric vehicles and associated infrastructure—has reshaped investment priorities. By 2024, e-mobility accounted for 49% of deal volume, up from just 6% in 2017. This shift is driven by technological innovation, consumer demand, and policy incentives such as FAME II and state-level EV policies.
Bengaluru, India’s startup capital, has emerged as a leader in this space, with 60% of venture capital (VC) deals focused on clean tech startups.
Energy transition investments power up in India
In this episode of EY India Insights podcast, part of our Energy Transition Dialogues series, we take a close look at state of green investments in India and their role in India's energy transition.
Another emerging frontier is the growth of the battery storage market in India. Investments in energy storage technologies, particularly lithium-ion batteries, rose from 1% in 2017 to 9% in 2024. This reflects growing demand for grid stability and energy reliability, especially as data centers and electric mobility expand. Mumbai, with its strong PE presence, is a key hub for India’s battery storage investment, supporting large-scale infrastructure projects.
The diversification of themes is evident in the rise of green energy trends such as low-carbon fuels, the circular economy, and green hydrogen. While still nascent, these sectors are attracting attention due to their potential to decarbonize hard-to-abate industries. Government incentives for green hydrogen investment in India, including the National Hydrogen Mission, are paving the way for scalable production and infrastructure development.
Cities are playing a pivotal role in shaping the future of clean energy. New Delhi, with its proximity to policymakers, leads in mature-stage funding for renewable energy technologies. Bengaluru dominates in consumer-focused green innovation, while Mumbai excels in infrastructure-oriented projects. Together, these cities represent the backbone of Indian energy transition investments in 2025, offering diverse opportunities across the value chain—from product development to services and financing.
Despite the progress, challenges remain. Renewable energy financing in India still falls short of the US$170 billion annual requirement to meet national climate goals. However, tools like green bonds and sustainability-linked loans are helping bridge the gap, attracting both domestic and global investors.
Looking ahead, 2025 trends in renewable energy investments in India point to continued growth in mature sectors and rapid expansion in emerging ones. The market for green energy in India is expected to grow at a Compound Annual Growth Rate (CAGR) of 12% to 35% across segments like energy efficiency, green hydrogen, and circularity, offering strong returns and scalable opportunities.
Explore this topic in greater depth with our EY India Insights podcast. In this episode, Kapil Bansal, Partner, Energy Transition and Decarbonization, EY India, shares valuable perspectives on the key themes, emerging trends, and actionable strategies.
India’s energy transition is no longer a vision—it is a vibrant reality. With rising energy investment, expanding innovation, and robust policy support, the country is well-positioned to lead the global shift toward sustainability. As energy transition investment trends in India evolve, stakeholders must continue to collaborate, innovate, and invest in scalable solutions that align with climate goals. Whether through green energy stocks, infrastructure projects, or startup ecosystems, the future of investment in renewable energy in 2025 is bright—and India is at the forefront.
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