Aerem a pioneer in distributed solar solutions and a solar finance enabler, today said that India’s clean electricity transition is moving forward at a strong pace, but the next phase of progress will depend on how quickly states can close persistent gaps in grid readiness, distribution utility performance, market enablers and distributed clean energy adoption.
The Ember-IEEFA State Electricity Transition (SET) 2026 report shows that India’s electricity demand continues to grow rapidly, while renewable energy has also expanded at scale. In FY2025, India added 29 GW of renewable capacity, including 24 GW of solar, and total installed renewable capacity reached 251 GW by October 2025. India also achieved 50% of installed power capacity from non-fossil sources five years ahead of its original 2030 target, underscoring the progress made by the country’s clean energy transition.
At the same time, the report makes clear that India’s transition remains uneven across states. Some states are leading in decarburization, others are ahead on power system readiness, and a separate group is progressing on market enablers such as green tariffs, green open access, EV adoption and storage deployment. However, no state is consistently strong across all three dimensions, showing that India’s electricity transition is still fragmented at the sub-national level.
The report highlights that Karnataka, Himachal Pradesh and Kerala are among the strongest performers on decarburization, while Delhi and Haryana lead on power ecosystem readiness. Andhra Pradesh, Uttar Pradesh and Rajasthan stand out on market enablers, with progress in policy support, green tariffs, green open access and solar-hour-aligned time-of-day tariffs. Even so, these gains have not yet translated into a fully integrated, system-wide transition across the country.
Several gaps continue to constrain faster progress. The report notes that states such as Maharashtra and Rajasthan still need to strengthen power ecosystem readiness, while Gujarat has room to improve renewable energy utilization despite progress in other areas. West Bengal, Jharkhand and Telangana remain at an early stage of transition and need deeper structural interventions, including stronger DISCOM finances, better planning frameworks and clearer long-term policy signals.
Anand Jain, Founder, Aerem, said, “India has made impressive progress on renewable capacity addition, but the SET 2026 findings show that the transition is still uneven across states. The next leap will come from closing the gaps that slow down real-world adoption especially in distributed solar, grid readiness, smart metering, storage and market participation. If India wants to turn clean energy ambition into universal access and dependable execution, state-level implementation has to move faster and more consistently.”
India’s rising electricity demand adds urgency to this challenge. Consumption increased by 33% from FY2021 to 1,694 billion units in FY2025, driven by economic growth, urbanization, industrial activity, mobility electrification and digital infrastructure expansion. Renewable generation supplied about 22% of total electricity generation in FY2025, showing growing momentum, but also the scale of the remaining task.
Aerem believes the findings reinforce the need for stronger state-level execution, better market design and wider deployment of distributed clean energy solutions to support India’s energy security and long-term growth. As the country advances toward a cleaner power system, the focus must now shift from ambition to implementation, with every state contributing to a more resilient and balanced transition.
About Aerem:
Aerem Solutions Pvt. Ltd. is India’s leading end-to-end green energy company, powering renewable energy adoption via the country’s most comprehensive full-stack digital platform for distributed solar. By unifying financing, high-quality procurement, and real-time asset monitoring, Aerem eliminates the “trust deficit” in the fragmented rooftop solar market, making clean energy effortless for businesses and households alike. Headquartered in Mumbai and founded in 2021, the Aerem Group operates a vertically integrated model through three strategic pillars: Aerem Solutions, the core digital platform for end-to-end solar journey management; NetZero Finance, India’s only RBI-licensed NBFC exclusively focused on solar lending; and SunStore, a leading B2B marketplace for high-performance solar equipment and supply chain finance.
To date, the platform has built a formidable national footprint, empowering over 5,000+ EPC partners across 150+ cities, enabling 1.5GW+ of solar capacity, and financing 2,000+ distributed energy projects. This has resulted in 15+ billion lifetime energy units and the avoidance of 35+ million tonnes of CO₂ emissions, equivalent to planting 80+ million trees. To fuel its mission, Aerem has raised $34.5 million in total capital, beginning with a $2.5 million Pre-Series A led by Blume Ventures in 2022 and a $5 million round led by Avaana Capital in 2023. Most recently, the company secured a $15 million Pre-Series B led by the SMBC Asia Rising Fund (Sumitomo Mitsui Banking Corporation), with continued participation from a global consortium of climate and tech investors, including British International Investment (BII), UTEC (University of Tokyo Edge Capital Partners), SE Ventures (Schneider Electric), and Riverwalk Holdings.
