Solar Energy: Indian Scenario:
1. National Institute of Solar Energy (NISE) has assessed the country’s solar potential of about 748
GW assuming 3% of the waste land area to be covered by Solar PV modules. Solar energy has
taken a central place in India’s National Action Plan on Climate Change with National Solar Mission
(NSM) as one of the key Missions. NSM was launched on 11 th January, 2010. NSM is a major
initiative of the Government of India with active participation from States to promote ecological
sustainable growth while addressing India’s energy security challenges. It will also constitute a
major contribution by India to the global effort to meet the challenges of climate change. The
Mission’s objective is to establish India as a global leader in solar energy by creating the policy
conditions for solar technology diffusion across the country as quickly as possible. This is in line
with India’s Nationally Determined Contributions (NDCs) target to achieve about 50 percent
cumulative electric power installed capacity from non-fossil fuel-based energy resources and to
reduce the emission intensity of its GDP by 45 percent from 2005 level by 2030.
In order to achieve the above target, Government of India have launched various schemes to
encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU
Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected
Solar Rooftop Scheme etc.
Government has taken several steps for promotion of solar energy in the country. These include:
2. Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
3. 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,
4. Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30,
5. Notification of standards for deployment of solar photovoltaic system/devices,
6. Setting up of Project Development Cell for attracting and facilitating investments,
7. Standard Bidding Guidelines for tariff based competitive bidding process for procurement of
Power from Grid Connected Solar PV and Wind Projects.
8. 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.
9. Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
10. Notification of “The electricity (Late Payment Surcharge and related matters) Rules 2002 (LPS
rules).
11. Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power
including Solar power through exchanges.
India lies in the tropical region, with the Tropic of Cancer passing through many states. This gives
the country a high potential for solar power generation. The total solar sector potential of the Indian
continent is 748 GW. States/ UTs like Rajasthan, Jammu and Kashmir, Maharashtra, Madhya
Pradesh, and Andhra Pradesh have some of the highest solar potential in the country, making
them key drivers of India's clean energy growth.
Region Major High-Potential States Northern & Western Rajasthan, Gujarat Southern & Central
Karnataka, Tamil Nadu, Andhra Pradesh Eastern & Other Maharashtra, Chhattisgarh, Odisha.
In July 2025, India’s solar power capacity had increased by 4,000%. Palli village in Jammu &
Kashmir became a notable example, emerging as India’s first carbon-neutral panchayat by running
entirely on solar power. Emphasis was placed on the need for energy storage and adoption of new
technologies to meet future energy demands. Government schemes like the PM Surya Ghar
Yojana and PM Kusum Yojana are playing a key role in helping households and farmers transition
to clean solar energy
This rapid growth in domestic capacity is strongly supported by government policies. To promote
Indian-made solar products, the government has made it mandatory for projects under schemes
like the Rooftop Solar Programme, PM-KUSUM, and CPSU Scheme Phase II to use panels and
cells made in India. To make this shift more effective, a Basic Customs Duty (BCD) was introduced
in April 2022 on imported solar cells and modules. This makes imports more expensive and
encourages the use of Indian alternatives—boosting local manufacturing and reducing reliance on
foreign suppliers.
PM Surya Ghar: Muft Bijli Yojana:
PM Surya Ghar Muft Bijlee Yojana is a central scheme 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. Even if a family takes a loan to install the system, they can still save about
₹15,000 every year on electricity bills after paying the monthly loan EMI.
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
distributing companies. 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 have been approved in 13 states. Out of these, 18
parks are fully developed. 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.
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.
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. It costs ₹330 crore, with
₹49.85 crore support from the Centre. 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.
Green Hydrogen
Green hydrogen is made by splitting water into hydrogen and oxygen using solar or wind energy.
It will replace fossil fuels in industries like steel and transport, and provide long-term clean energy
storage. The demand for green hydrogen is growing fast because it can help reduce emissions
and pollution in many areas like transport, shipping, and steel production. It can take the place of
petrol and diesel in vehicles, which are big causes of harmful emissions. In factories, green
hydrogen can be used to make things like ammonia, methanol, and steel, which now depend a lot
on fossil fuels. It can also store energy and act as a backup for solar and wind power, making sure
there’s always a steady supply of clean energy.
The National Green Hydrogen Mission was launched by the Government of India to cut carbon
emissions and make India a global leader in green hydrogen. By 2030, the goal is to produce 5 million
tonnes of green hydrogen every year, bringing in ₹8 lakh crore investments, creating 6 lakh jobs, and
saving ₹1 lakh crore in fossil fuel imports. The mission focuses on production, pilot projects,
electrolyser manufacturing, skill training, infrastructure, and research, with plans to replace fossil fuels
in steel, transport, and fertilizer sectors.
To push this forward three major ports namely Kandla, Paradip and Tuticorin ports have been
identified by Ministry of Ports, Shipping and Waterways (MoPSW) to be developed as Green Hydrogen
hubs.
India’s rapid transition to clean energy is positioning the country ahead of schedule in meeting its Paris
Agreement commitments. By accelerating the growth of non-fossil fuel capacity, India is enhancing
energy security, reducing coal imports, creating jobs, and strengthening reliable power supply. This
progress underscores India’s leadership role in the global fight against climate change.
The Paris Agreement was adopted under United Nations Framework Convention on Climate Change
(UNFCCC) in 2015. Under its Paris Agreement Nationally Determined Contributions (NDCs), India
committed to reducing carbon intensity of the economy by 45% by 2030.