India is leading the renewable energy revolution, with a strategic emphasis on solar power to meet its growing electricity needs. The 14th National Electricity Plan (NEP14), introduced in May 2023, aims to double the country's electricity generation capacity by 2032, with solar energy poised to Contact online >>
India is leading the renewable energy revolution, with a strategic emphasis on solar power to meet its growing electricity needs. The 14th National Electricity Plan (NEP14), introduced in May 2023, aims to double the country's electricity generation capacity by 2032, with solar energy poised to play a pivotal role. This blog provides an insightful overview of India's energy landscape, highlighting the significant growth of the solar sector, underscored by government initiatives and the potential for future development. It outlines solar energy's environmental and economic benefits, the government's strategies to boost solar adoption, and the anticipated impact on the global clean energy market.
India's coal-to-clean energy transition led by solar
Source: Central Electricity Authority, Central Electricity Regulatory Commission
The graph shows a big shift to cleaner energy, with solar capacity jumping 24 times in the last nine years, hitting 66.7 GW in May 2023, thus contributing 16% to the overall installed capacity. The government has set a target to elevate this share to 43% of the total installed capacity, as illustrated in the graph above. This is the opposite of what has been seen in the past decade. Until 2022, coal was driving India’s power growth. Total power generation, including imports, shot up by 564 TWh between FY2012 and FY2022 (928 TWh to 1,492 TWh). Notably, 83% of this growth (467 TWh) came from more coal power.
Multi-faceted benefits of solar energy
Solar energy offers varied benefits, making it an important player in the pursuit of sustainable and efficient power sources.
The utilisation of solar panels not only facilitates electricity savings but also contributes to environmental preservation and technological progress, marking a significant shift towards a sustainable energy future.
Government initiatives to navigate the challenging landscape
The government is actively promoting the transition to solar power as a key strategy for addressing environmental concerns and meeting the country’s growing energy needs. This proactive approach reflects India’s dedication to reducing its carbon footprint and embracing cleaner, more environmentally friendly alternatives to conventional energy sources. Some of the initiatives are mentioned below:
An integrated capacity of 8,737 MW has been added under the PLI (Tranche I). The Indian government has approved a substantial expansion in domestic solar PV module manufacturing, allocating a capacity of 39,600 MW across 11 companies under the PLI Scheme for High-Efficiency Solar PV Modules (Tranche II). With an investment of US$ 1,686.2 million (Rs. 14,007 crores), this initiative is set to unfold in phases: 7,400 MW by October 2024, 16,800 MW by April 2025 and the final 15,400 MW by April 2026. This move, expected to attract US$ 11,200.3 million (Rs. 93,041 crores) in investment, would significantly boost the sector, creating over 101,487 jobs, including 35,010 direct and 66,477 indirect roles, and marking a pivotal step towards India’s sustainable energy future.
India’s bold vision for solar energy leadership
India possesses a significant solar energy potential, with an annual incidence of approximately 5,000 trillion kWh across its landmass, where most regions receive 4–7 kWh per square meter daily. Recognising this, the National Institute of Solar Energy has evaluated the country’s solar potential of about 748 GW, assuming 3% of the wasteland area will be covered by solar PV modules.
During its G20 presidency, India unveiled the ‘Roadmap of Solar Energy for Universal Energy Access’, highlighting solar energy’s critical role in ensuring widespread access to electricity and driving socio-economic progress. The Interim Union Budget for 2024–25 further underscores this commitment by considerably increasing funding for green infrastructure. Specifically, the budget for the central sector scheme on grid-connected solar power has seen a substantial increase to US$ 1,204 million (Rs. 10,000 crores) in 2024–25, up from the revised estimate of US$ 572.6 million (Rs. 4,757 crores) in 2023–24, demonstrating the government’s strong support for solar energy development.
In pursuit of its 2030 objectives, India is not only focused on expanding its solar energy capacity but also on ensuring that 50% of its total energy needs are met through renewable sources. This ambitious strategy aligns with global climate objectives and establishes India as a key player in the global effort to combat climate change. The growth of the solar power sector in India is seen not just as a pathway to energy security but also as a driver of economic growth and job creation, with the potential to generate 5–6 million jobs by 2030 and possibly 9–10 million by 2047, thereby boosting the national economy.
India's commitment to enhancing its solar energy capacity is a key component of its sustainable development and energy independence strategy. India is well positioned to execute its plans to leverage solar power to meet a substantial portion of its energy needs by 2032, backed by government initiatives and investment in technology. As India advances towards meeting its renewable energy goals, the solar sector is expected to drive not only environmental benefits but also economic growth and job creation, underscoring India's role in the global transition to renewable energy.
India’s solar journey is a tale of turning challenges into opportunities, of harnessing the sun’s boundless energy to light up lives sustainably. On this World Environment Day, India’s solar saga reminds us that with innovation, policy support, and collective will, we can indeed craft a brighter, greener future—one solar panel at a time.
Image: Jakson Solar
As we commemorate World Environment Day, it’s fitting to reflect on India’s ambitious journey in the solar energy sector. With its commitment to sustainable development and combating climate change, India has set its sights on becoming a global solar powerhouse. However, the path to this green future is paved with both formidable challenges and promising opportunities.
India’s geographical advantage is undeniable. Blessed with about 300 sunny days annually and an average solar radiation of 4-7 kWh/m²/day, India’s solar potential is among the highest globally. To put this into perspective, if just 1% of India’s land area were covered with solar panels at 15% efficiency, it could generate over 1,000 GW of power.
This natural bounty, coupled with plummeting solar panel costs, has propelled India’s solar capacity from a mere 2.8 GW in 2014 to an impressive 82.6 GW till April 2024 with the highest annual installation of 15 GW achieved in 2023-24 Furthermore, the Union Budget significant allocation to renewable energy projects underscores the country’s commitment to harnessing its solar potential.
Despite this rapid growth, significant hurdles remain.
Land acquisition and grid integration: Solar farms require vast tracts of land. In a densely populated country where agriculture dominates, acquiring suitable land without displacing communities or compromising food security is a delicate balancing act. This is particularly challenging in states with high population density and fertile agricultural land. Additionally, India’s ageing power grid struggles to handle the intermittent nature of solar energy.
Modernizing and expanding the grid to accommodate increasing solar capacity is a costly and complex task. The variability of solar power necessitates advanced grid management techniques and significant investment in infrastructure.
Manufacturing dependencies and financial constraints: Despite the “Make in India” initiative, most solar equipment is imported, particularly from China. This not only widens the trade deficit but also poses supply chain risks, as seen during the COVID-19 pandemic.
Building a robust domestic manufacturing sector for solar components is crucial for long-term sustainability. Moreover, high upfront costs and perceived risks make financing solar projects challenging. Many distribution companies (DISCOMs), burdened by debt, struggle to pay for solar power, deterring investors. Access to affordable finance remains a significant barrier for large-scale solar deployment.
Water scarcity: Solar panels need regular cleaning to maintain efficiency. In water-stressed regions, this creates a dilemma: green energy versus water conservation. Developing water-efficient cleaning technologies is essential to address this issue.
Yet, for every challenge, there’s an opportunity:
Rooftop solar: With over 300 million buildings, India’s rooftop solar potential is vast. It sidesteps land issues, empowers consumers as ‘prosumers’ (producer-consumers), and reduces transmission losses. Expanding rooftop solar installations can significantly contribute to the overall solar capacity.
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