Context: India has reached a significant milestone in its renewable energy sector by surpassing 100 GW of installed solar power capacity. This achievement marks a major step in India’s transition toward sustainable energy and reinforces its position as a global leader in solar energy development.

With a 500 GW non-fossil fuel energy target set for 2030, as outlined by Prime Minister Narendra Modi, the country is making remarkable strides in scaling up solar infrastructure. This rapid progress reflects India’s commitment to reducing its reliance on fossil fuels, mitigating climate change, and enhancing energy security.

India’s Solar Energy Growth:

India's solar energy sector has witnessed exponential growth over the past decade. Installed solar capacity has increased from 2.82 GW in 2014 to 100 GW in 2025, marking an astonishing 3,450% growth in just ten years.

Current Status of Solar Energy in India

As of January 31, 2025, India's total installed solar capacity stands at 100.33 GW, with an additional:

• 84.10 GW under implementation.
• 47.49 GW under tendering.

In addition to standalone solar projects, India is rapidly advancing hybrid and round-the-clock (RTC) renewable energy projects that integrate solar with wind and battery storage.

• Currently, 64.67 GW of hybrid and RTC projects are either under implementation or tendered.
• The country’s total renewable energy capacity, including solar, wind, hydro, and biomass, has reached 296.59 GW.

Solar Energy as the Leading Force in India’s Renewable Expansion:

Solar power is the dominant contributor to India’s renewable energy growth, accounting for 47% of the total installed renewable capacity. The past year alone has seen record-breaking growth, with 24.5 GW of new solar capacity added in 2024, more than doubling the installations of 2023.

Utility-Scale Solar: Key Growth Areas

Utility-scale solar projects are large-scale solar installations that generate electricity and sell it to utility companies. They are usually defined as projects that produce 10 megawatts (MW) or more of energy. India has significantly expanded utility-scale solar projects, which account for the bulk of the newly installed capacity. In 2024, 18.5 GW of utility-scale solar was installed, a 2.8-fold increase compared to 2023.

The leading states in utility-scale solar development include:

• Rajasthan
• Gujarat
• Tamil Nadu
• Maharashtra
• Madhya Pradesh

These states have capitalized on favorable climatic conditions, government incentives, and large-scale solar parks to drive growth.

Rooftop Solar: Empowering Households and Businesses

The rooftop solar sector in India has also experienced significant expansion, with 4.59 GW of new capacity added in 2024, marking a 53% increase compared to 2023.

A major catalyst for this growth has been the PM Surya Ghar: Muft Bijli Yojana, introduced in 2024, which has led to nearly 900,000 rooftop solar installations across the country. This scheme has made clean energy more accessible and affordable for Indian households and small businesses.

By promoting decentralized energy generation, rooftop solar helps reduce transmission losses, lower electricity bills, and improve energy independence at the household level.

India’s Rise as a Global Solar Manufacturing Hub:

India has not only expanded solar installations but also strengthened its domestic solar manufacturing sector. In 2014, India’s solar module production capacity was just 2 GW. By 2024, it had increased to 60 GW, establishing India as a key global player in solar manufacturing.

With continued policy support and investments, India aims to achieve 100 GW of solar module production capacity by 2030, reducing its dependence on imports and bolstering its position in the international solar market.

Government Policies and Initiatives Supporting Solar Energy:

The rapid growth of India’s solar energy sector is largely driven by policy support from the Ministry of New and Renewable Energy (MNRE). Several key initiatives have been implemented, such as:

1. Solar Parks and Large-Scale Installations: The government has approved 45 solar parks with a total capacity of 37 GW, enabling large-scale solar energy generation. Some of the largest operational solar parks include:

• • Pavagada Solar Park (2 GW), Karnataka
  • Kurnool Solar Park (1 GW), Andhra Pradesh
  • Bhadla-II Solar Park (648 MW), Rajasthan

2. Rooftop Solar Promotion: Programs such as the PM Surya Ghar: Muft Bijli Yojana provide financial incentives and subsidies to encourage households and businesses to adopt rooftop solar systems.

3. Domestic Solar Manufacturing Incentives: The Production-Linked Incentive (PLI) Scheme aims to boost domestic manufacturing of high-efficiency solar PV modules, reducing dependency on imports and enhancing India’s global competitiveness.

4. Grid Modernization and Infrastructure Development

• • Inter-State Transmission System (ISTS) charge waivers for solar projects.
  • Strengthened Renewable Purchase Obligations (RPOs) to ensure utilities procure a higher percentage of renewable energy.

5. Solar-Wind Hybrid Projects and Energy Storage: India is developing the world’s largest renewable energy park, a 30 GW solar-wind hybrid project in Gujarat, to ensure continuous and stable power supply.

Challenges Hindering Solar Energy Growth:

Despite remarkable progress, India faces several challenges in scaling up solar energy:

1. Lack of Domestic Manufacturing of Solar Parts: While module production has increased, India still imports key components like solar wafers and inverters, limiting its energy self-sufficiency.

2. Land Availability Issues: Utility-scale solar projects require vast land areas, making land acquisition a major challenge in densely populated regions.

3. Financing and Investment Constraints: High upfront costs and limited availability of affordable financing options slow down large-scale solar projects.

4. Low Solar Tariffs Affecting Profitability: India enforces some of the lowest solar tariffs globally, which affects the financial viability of solar projects and leads to compromises in quality.

5. Solar Waste Management: India is projected to generate 1.8 million tonnes of solar waste by 2050, yet e-waste regulations for solar panels remain weak, posing environmental risks.

Recent Developments: Solar-Powered Electric Highways: 

A major initiative in India’s renewable energy expansion is the development of solar-powered electric highways. These highways will facilitate the charging of electric trucks and buses, reducing carbon emissions in the transport sector and integrating solar energy into mobility solutions.

Future Roadmap: Strengthening India’s Solar Energy Sector:

To maintain its growth trajectory, India must focus on the following strategies:

1.   Promoting Hybrid Renewable Energy Systems: Integrating solar and wind energy can stabilize power generation and enhance efficiency.

2.   Expanding Transmission Infrastructure: Investing in high-voltage transmission lines will ensure efficient power distribution across the country.

3.   Advancing Battery Storage Solutions: Developing grid-scale battery storage will help manage intermittent solar energy supply and enhance grid reliability.

4.   Strengthening Distribution Companies (DISCOMs): Upgrading infrastructure, privatizing inefficient DISCOMs, and reforming billing systems can improve energy distribution efficiency.

Conclusion

India’s achievement of 100 GW solar capacities is a testament to its commitment to clean energy and sustainability. With strong government support, technological advancements, and investment in domestic manufacturing, India is well-positioned to achieve its 500 GW non-fossil fuel energy target by 2030.

By addressing challenges such as manufacturing dependencies, financing gaps, and solar waste management, India can further solidify its leadership in the global solar energy landscape and move toward a more sustainable and energy-secure future.

Source: PIB