Solar Energy in India

The government has launched several flagship initiatives to promote the adoption and development of solar energy across the country.

• PM Surya Ghar: Muft Bijli Yojana
  • PM Surya Ghar Muft Bijlee Yojana is a central scheme with an outlay of Rs. 75,021 crores to help one crore Indian households to get up to 300 units of free electricity every month by installing rooftop solar panels. The government provides a subsidy of ₹30,000 for 1 kW, ₹60,000 for 2 kW, and ₹78,000 for 3 kW rooftop solar systems or higher
•  PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan)
  • The PM-KUSUM Scheme supports farmers in using solar energy instead of diesel. Farmers can get a 30% to 50% subsidy to install new solar pumps or convert old pumps to solar. 
  • They can also build solar power plants up to 2 MW on their own land and earn money by selling electricity to local DISCOMs. 
  • The scheme is carried out by state implementing agencies.
  • Moreover, it is aimed at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil fuels sources to 50% by 2030 as part of Intended Nationally Determined Contributions (INDCs)
• Solar Parks Scheme
  • The government is running a scheme called “Development of Solar Parks and Ultra Mega Solar Power Projects” to set up large solar power plants connected to the electricity grid, with a target of 40 GW by March 2026. 
    • So far, 53 Solar Parks with a total capacity of about 39,323 MW have been approved in 13 states. 
    • Out of these, 18 parks (10,856 MW) are fully developed, where 10,756 MW of solar power projects are already working. Another 3140 MW of solar projects are running in 8 parks (10,043 MW). 
    • In total, 13896 MW of solar power projects have started operating in 26 Solar Parks, while the remaining parks are still being developed. 

•  PM JANMAN: Empowering PVTG Communities through Solar Electrification
  • The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) was launched to address the development needs of Particularly Vulnerable Tribal Groups (PVTGs) through 11 critical interventions across 9 Ministries. 
  • A key initiative under this mission and Dharti Aaba Janjatiya Gram Utkarsh Abhiyan (DA JGUA) is the New Solar Power Scheme, with an outlay of ₹515 crore, aimed at electrifying one lakh un-electrified households in Tribal and PVTG habitations across 18 states, promoting inclusive growth and sustainable energy access in remote tribal areas.
• Increase in Solar PV Manufacturing Capacity           
  • Since 2014, India’s capacity to make solar PV cells has grown about 21 times, going up from  1.2 GW in 2014 to about 25 GW by March 2025. 
  • Similarly, the capacity to make solar PV modules has grown more than 34 times, rising from 2.3 GW in 2014 to about 78 GW by March 2025
• India’s Global Solar Leadership: ISA & OSOWOG
  • International Solar Alliance (ISA): Launched by India and France at COP21 in 2015, the ISA is a global alliance of 100+ countries working to combat climate change through solar energy. 
    • It aims to mobilise $1 trillion in investments by 2030, reduce technology and financing costs, and promote affordable solar solutions. 
    • With a special focus on Least Developed Countries (LDCs) and Small Island Developing States (SIDS), the ISA seeks to drive low-carbon growth through cost-effective and transformational energy solutions.
  • ONE SUN- ONE WORLD- ONE GRID (OSOWOG): The ‘One Sun, One World, One Grid’ (OSOWOG) initiative, launched by India at the ISA Assembly in 2018, envisions a global solar grid under the idea that ‘the sun never sets.’ 
    • Led by ISA, it aims to connect solar resources across regions from South Asia to Africa and Europe, with studies and frameworks already underway
• Other Important initiatives
  • Floating Solar Projects:
    • The Omkareshwar Floating Solar Park in Madhya Pradesh is one of Asia’s largest floating solar parks, with a planned capacity of 600 MW.
      • These solar projects are set up on water bodies to save land and work more efficiently
  • Agrivoltaics:
    • Agrivoltaics use solar panels and allow farming underneath, increasing land use and farmer income. 
      • Projects like the Sun master Plant in Delhi and a 105 KW system by ICAR in Jodhpur show India’s progress in clean energy.

Other Steps

The government has taken several steps for the promotion of solar energy in the country. These include:

• Permitting Foreign Direct Investment (FDI) up to 100 percent 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 30th June 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 investments,
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
• The government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
• Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
  • Under the rules, eligible consumers are entitled to demand supply of Green Power from Discoms. Discoms would be obligated to procure and supply green power to eligible consumers.
• Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power including Solar power through exchanges.