Context
- India’s renewable energy transition is gradually changing the way electricity is generated, distributed and consumed. Solar power, in particular, is no longer limited to large power plants; it is increasingly being used by households, farmers and industries.
- India’s solar capacity has expanded from just 2.8 GW in 2014 to approximately 171 GW, reflecting the rapid growth of its renewable energy sector.
- This progress is important for achieving the target of 500 GW of non-fossil fuel-based installed electricity capacity by 2030 and the broader vision of Viksit Bharat by 2047.
How solar energy is transforming India’s economy?
- Households Becoming Electricity Producers
- Traditionally, households depended entirely on electricity supplied by distribution companies but now rooftop solar is changing this.
- Under the PM Surya Ghar Muft Bijli Yojana, more than 65 lakh households have adopted rooftop solar systems, while over 21 lakh households have received almost 0 electricity bills. This reduces household expenditure and allows surplus electricity to be supplied to the grid, where applicable.
- It also creates opportunities for local businesses involved in installing, maintaining and repairing solar systems.
- Solar Energy Becoming More Affordable
- The cost of solar electricity has declined sharply, making it increasingly affordable. Solar power, which cost around ₹8–₹10 per unit in 2014, can now be generated at rates as low as ₹2.15 per unit.
- This decline is driven by technological improvements, large-scale manufacturing and economies of scale, where increased production reduces the cost per unit.
- Government programmes such as PM-KUSUM have further encouraged solar adoption in agriculture.
- India Reducing Its Dependence on Conventional Energy
- India achieved its earlier target of obtaining 50% of its installed electricity capacity from non-fossil fuel sources ahead of schedule. This reflects a major shift towards cleaner energy sources.
- However, installed capacity does not mean continuous electricity supply. Solar power generation stops at night and varies with weather conditions.
- Therefore, the next challenge is to develop adequate energy storage and transmission infrastructure to ensure reliable electricity supply whenever required.
Moving Beyond Solar Power Generation: Expanding Its Reach
- The next stage of India’s energy transition is not just about installing more solar panels but also integrating solar power into agriculture, households and the national electricity grid.
- Bringing Solar Energy to Agriculture
- Agriculture consumes significant electricity for irrigation. Under PM-KUSUM, solar–powered irrigation is being promoted. This reduces farmers’ dependence on diesel and conventional electricity, while providing a decentralised source of power.
- Agri-photovoltaics (Agri-PV): Solar panels and farming activities coexist on the same land, allowing farmers to generate electricity while continuing agricultural production and earning additional income.
- Strengthening the Electricity Transmission Network
- Renewable energy projects are often located far from major consumption centres, requiring electricity to be transported across States. Green Energy Corridors strengthen transmission infrastructure to facilitate the efficient movement of renewable electricity across regions.
- Digitised electricity networks help monitor power flows, manage demand and integrate variable renewable energy into the grid. This requires coordinated planning among the Union and State governments and private power companies.
Four Essential Requirements for Scaling Up Renewable Energy
Achieving large renewable energy targets requires more than installing solar panels. India needs a complete ecosystem involving finance, manufacturing, storage and skilled workers.
- Investment: Mobilising Long-Term Capital:
- Expanding India’s non-fossil fuel capacity to 500 GW requires an estimated $220 billion in investment. Government funding alone is insufficient; private companies, institutional investors and foreign investors must also contribute.
- Making rooftop solar installations and solar pumps financially viable through suitable financing arrangements can attract long-term investment.
- Manufacturing: Building a Domestic Solar Supply Chain
- India’s domestic solar module manufacturing capacity has crossed 225 GW, supported partly by Production-Linked Incentive (PLI) schemes.
- However, solar panel manufacturing involves several stages. India needs to strengthen upstream manufacturing to reduce dependence on imported components and protect against global supply disruptions and price fluctuations.
- The National Green Hydrogen Mission aims to achieve 5 million tonnes of annual green hydrogen production by 2030, supporting cleaner industrial processes.
3. Storage and Grid Modernisation: Ensuring Reliable Electricity
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- Solar and wind generation depend on sunlight and weather conditions, creating a mismatch between electricity generation and demand. Energy storage addresses this gap.
- India may require approximately 236 GWh of battery storage by 2031–32. Batteries, pumped-storage hydropower and smart grids are essential for maintaining a stable electricity supply as renewable energy expands.
4. Skilled Workforce: Creating Employment Opportunities
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- Renewable energy expansion creates jobs for engineers, electricians, installation technicians and maintenance workers. Women and young people can benefit from these emerging opportunities.
- Vocational training, practical apprenticeships and recognised skill qualifications are necessary to prepare workers for the renewable energy industry.
India’s Role in Global Renewable Energy Cooperation
- Cooperation through G20 & BRICS: India uses platforms such as the G20 & BRICS to promote global cooperation in renewable energy. Key areas include solar photovoltaic technology, smart electricity grids & energy storage. These partnerships help developing countries access technology, attract investment and strengthen domestic manufacturing, reducing dependence on imports.
- International Solar Alliance (ISA): Launched by India and France in 2015 to promote the adoption of solar energy globally, it addresses barriers such as high initial costs, limited technical expertise and inadequate institutional capacity. Through training programmes, centres of excellence and the Africa Solar Facility, it promotes skill development and investment, particularly in developing countries.
Bharat Renewable Energy Summit and Expo 2026
- Scheduled from November 2–5, 2026, the Bharat Renewable Energy Summit and Expo provides a platform for governments, businesses and international stakeholders to discuss cooperation in solar energy, green hydrogen and energy storage.
- Such cooperation is particularly relevant for developing countries, where access to reliable and affordable electricity remains closely connected with agricultural productivity and economic development.
- This approach reflects India’s philosophy of Vasudhaiva Kutumbakam (world is one family), highlighting the importance of collective action to achieve sustainable development.
Challenges and Way Forward
| Challenges | Way Forward |
| 1. High Financing Requirements: Large initial investments and uncertain returns discourage private investors. | Provide affordable credit, attract institutional and foreign investment, & improve the viability of rooftop and agricultural solar projects. |
| 2. Import Dependence: Reliance on imported solar cells, wafers and polysilicon creates supply-chain vulnerabilities. | Develop an integrated domestic solar manufacturing ecosystem through research, innovation and targeted incentives. |
| 3. Intermittent Power Generation: Solar generation depends on sunlight and weather, making uninterrupted supply difficult. | Expand battery storage, pumped-storage hydropower and smart grids to balance fluctuations in power generation. |
| 4. Inadequate Transmission Infrastructure: Renewable electricity cannot always be efficiently transported from resource-rich regions to areas of high demand. | Expand Green Energy Corridors, modernise transmission networks and strengthen inter-State coordination. |
| 5. Financial Weakness of DISCOMs: Poor financial health leads to delayed payments to renewable energy producers and discourages investment. | Improve billing and collection, reduce distribution losses and strengthen DISCOMs’ financial sustainability. |
| 6. Shortage of Skilled Workers: Renewable energy expansion requires trained personnel for installation, operation and maintenance. | Strengthen vocational training, apprenticeships and industry-linked certification, particularly for rural youth and women. |
| 7. Environmental and Land-use Concerns: Large solar parks may affect agricultural land and local ecosystems, while manufacturing and panel cleaning require water. | Promote suitable land-use planning, water-efficient cleaning methods and responsible solar panel disposal and recycling. |
Conclusion
India’s renewable energy transition represents a shift towards an economy that is not only cleaner but also more energy-secure and employment-oriented. A successful energy transition must combine technological innovation, economic viability and environmental sustainability, enabling India to progress towards Viksit Bharat by 2047 while contributing to global climate goals.
Frequently Asked Questions (FAQs)
Q1. What is India’s renewable energy target for 2030?
To achieve 500 GW of non-fossil fuel-based installed electricity capacity by 2030.
Q2. What is PM Surya Ghar Muft Bijli Yojana?
It promotes rooftop solar installations in households, reducing electricity bills and enabling surplus power generation.
Q3. What is Agri-Photovoltaics (Agri-PV)?
It involves installing solar panels on agricultural land while allowing farming activities to continue alongside electricity generation.
Q4. What are Green Energy Corridors?
They strengthen electricity transmission infrastructure to transport renewable energy from resource-rich regions to consumption centres.
