Insights by: Sumit Kochar
India is not merely a passive observer but a significant participant in the global solar movement. Presently, India ranks fourth globally in solar power capacity. Over the past five years, the nation has witnessed a remarkable transformation in its solar installed capacity, surging from 21,651 MW to 70,096 MW by 2023. With ambitious targets and policies initiated by Government of India (GOI) such as the Production Linked Incentive (PLI), India is propelling itself toward achieving 500 GW of renewable energy capacity by 2030. This commitment extends beyond sustainable energy to securing a greener future for the planet as a whole.
As we progress into 2024, the solar industry’s declining costs, improved energy storage solutions, and advancements in grid infrastructure take center stage. There is a notable trend towards increased decentralization, widespread adoption, and a surge in solar projects, signaling a dedicated effort towards a sustainable energy future. Global trends indicate that solar energy is not merely an option but a necessity on a global scale.
Initiative taken by GOI on Solar Energy
The GOI’s commitment to solar power is not merely rhetorical but backed by comprehensive policies and initiatives. The PLI Scheme for the national programme on high-efficiency solar PV modules, with an outlay of INR 24,000 Crore, has been introduced to increase domestic manufacturing and cement India’s position as a solar powerhouse.
Under the PLI (Tranche-I), an integrated capacity of 8737 MW has been added, while Tranche-II has allocated 39,600 MW of domestic Solar PV module manufacturing capacity to 11 companies, attracting an investment of INR 93,041 Crore and generating over 100,000 direct and indirect jobs.
Another significant initiative by GOI is the Solar Park Scheme, aimed at establishing 50 Solar Parks of 500 MW and above with a cumulative capacity of approximately 38 GW by 2025-26. These solar parks serve as focal points for solar energy generation, attracting investments and fostering an environment conducive to solar power development. They play a vital role in achieving economies of scale, making solar energy more affordable and accessible. Thus far, 11 solar parks with an aggregate capacity of 8521 MW have been completed, with an additional 7 Solar Parks with an aggregate capacity of 3985 MW partially completed. These parks have facilitated the development of solar projects with an aggregate capacity of 10,237 MW.
In the Union Budget 2023-24, INR 7,327 Crore was allocated for the solar power sector, encompassing grid, off-grid, and PM-KUSUM projects, representing a 48% increase over the previous year. The PM-KUSUM scheme, aimed at achieving a solar power capacity addition of 30.8 GW by March 2026, is revolutionizing India’s agricultural sector by establishing decentralized solar power plants, replacing agriculture diesel pumps with solar agriculture water pumps, and solarizing existing grid-connected agriculture pumps. The scheme mandates the use of domestically manufactured solar modules, cells, motor pump-sets, controllers, and balance of the system.
Hon’ble Prime Minister Narendra Modi announced the launch of the ‘PM Suryodaya Yojana’ following the auspicious occasion of the ‘Ram Temple’ opening ceremony in Ayodhya. This scheme aims to promote the use of solar energy in the country. Finance Minister Nirmala Sitharaman highlighted this scheme in the Union Budget 2024-25. Under this scheme, solar panels are installed in households to supply power, with provisions for selling surplus electricity to distribution companies. It is projected to help poor and middle-class households save up to INR 15,000 to Rs. 18,000 annually by providing free solar electricity. The GOI aims to install solar panels in one crore homes nationwide through this scheme, enabling them to receive up to 300 units of free electricity every month. The objective is to reduce household electricity costs by installing rooftop solar panels and transitioning to sustainable energy sources, thereby decreasing reliance on traditional energy sources.
The International Solar Alliance (ISA), launched in 2015 by Prime Minister Narendra Modi and the President of France Emmanuel Macron, is a prime example of collaborative efforts aimed at steering the world toward a cleaner, greener, and more sustainable future. It is a member-centric, collaborative platform focused on action to create 450 GW of renewable energy by 2030. The alliance seeks to promote the widespread adoption of solar energy technologies, expand energy access, ensure energy security, and catalyze the energy transition within its member countries. The ISA is striving to unlock $1 trillion in investments by 2030, reducing technology costs and financing barriers while enhancing the skills of the solar industry workforce.
Further GOI has taken several steps for promotion of solar energy in the country. These include:
- Permitting Foreign Direct Investment (FDI) up to 100 % under the automatic route;
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by June 30, 2025;
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30;
- Notification of standards for deployment of solar photovoltaic system/devices;
- Setting up of project development cell for attracting and facilitating investment;
- Standard bidding guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power including Solar power through exchanges.
Conclusion
Prime Minister Narendra Modi’s visionary leadership has been instrumental in shaping India’s ambitious renewable energy goals and driving the nation towards energy independence. Under his guidance, India has laid out a comprehensive roadmap, as encapsulated in the ‘Panchamrit Policy’ announced at COP26, to achieve renewable energy dominance and combat climate change. Prime Minister Narendra Modi’s resolute commitment to environmental sustainability is evident in India’s ambitious targets, including the aim to achieve 500 GW of renewable energy capacity by 2030 and to meet 50% of its energy requirements from renewable sources by the same year. These targets reflect Prime Minister Narendra Modi’s proactive approach towards fostering green growth and catalyzing the energy transition.
India’s solar power sector represents a golden opportunity, with an estimated potential of 7,48,990 MW waiting to be tapped. Beyond merely addressing energy needs, this sector holds the key to unlocking numerous socio-economic benefits, including job creation, fostering innovation, and driving economic development. Moreover, Prime Minister Narendra Modi’s policies have created a conducive environment for the proliferation of emerging technologies in the clean energy sector, positioning India as a key player in clean technology manufacturing. Through supportive policy frameworks, the establishment of manufacturing clusters, and investment in skill development, Prime Minister Narendra Modi’s government has facilitated the adoption of advanced technologies that promise secure, affordable, and sustainable energy solutions for all. As India progresses towards its energy independence journey, Prime Minister Narendra Modi’s visionary leadership continues to inspire confidence and drive momentum towards achieving a future powered by renewable energy. Under his stewardship, India is poised to realize its vision of becoming a global leader in clean energy innovation and contributing significantly to the fight against climate change. As Prime Minister Narendra Modi said in 2020, “Solar energy is going to be a major medium of energy needs not only today but in the 21st century. Because solar energy is sure, pure and secure.”
