India’s Solar Power Capacity
Context:
Recently, India crossed the installation of 100 GW of solar power capacity. This achievement aligns with India’s target of reaching 500 GW of non-fossil fuel-based energy by 2030.
Relevance:
GS-02 (Government policies and interventions)
Dimensions of the Article:
- Key Highlights
- India’s solar energy potential
- Major initiatives implemented by the Indian government to promote solar energy
- Way forward
Key Highlights:
- India’s solar capacity grew from 2.82 GW in 2014 to 100 GW in 2025, a massive 3,450% increase.
- Solar now contributes 47% of total renewable energy capacity.
- Rajasthan, Gujarat, and Tamil Nadu are leading with 18.5 GW of utility-scale solar and 4.59 GW of rooftop solar installed.
- Solar module production surged from 2 GW (2014) to 60 GW (2024).
India’s solar energy potential:
- India possesses abundant solar energy potential, with approximately 5,000 trillion kWh of energy incident over its land area each year and most regions receiving 4–7 kWh per square meter per day.
- The National Institute of Solar Energy has estimated the country’s solar potential at about 748 GW, assuming that 3% of the wasteland area can be utilised for solar PV modules.
- In India, 100% Foreign Direct Investment (FDI) is available under the automatic route for renewable energy generation and distribution projects, subject to The Electricity Act 2003.
- India has set targets for renewable energy capacity to achieve 500 GW by 2030. This marks the world’s largest expansion plan in renewable energy.
- India has achieved fifth globally, surpassing Italy in solar power deployment.
- Solar capacity has increased more than elevenfold in the last five years, from 2.6 GW in March 2014 to 30 GW in July 2019. Presently, solar tariffs in India are highly competitive and have achieved grid parity.
- Furthermore, high-efficiency solar PV modules have been included in the Production-Linked Incentive (PLI) Scheme to enhance India’s manufacturing capabilities and boost exports.
Major initiatives implemented by the Indian government to promote solar energy:
- Operation of top solar parks like Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW).
- India holds the world’s largest renewable energy park in Gujarat with a 30 GW solar-wind hybrid capacity.
- Few government schemes:
- Solar Park Schemes
- VGF Schemes
- CPSU Schemes
- Defence Schemes
- Canal bank and canal top Schemes
- Bundling Schemes and Grid-Connected Solar Rooftop Schemes.
- Implementation of policies including a trajectory declaration for Renewable Purchase Obligation (RPO) and waiver of Inter-State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power.
- Establishment of clear standards for solar PV systems and device deployment.
- Amendment of building bye-laws to mandate rooftop solar panel installation for new constructions or higher Floor Area Ratio.
Way Forward:
- Accelerate Infrastructure & Grid Modernisation: With an increase in the number of installations, energy storage solutions and grid facilities should also be taken care of to ensure stable power supply.
- Enhance Policy Support & Investments: The government can increase the incentives for solar manufacturing.
- Promote Decentralised Solar Power: Strengthen rooftop solar and hybrid projects for rural and urban households.
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