India’s Solar Surge is Transforming Deserts and Skylines into Powerhouses of Clean Energy

• Published Date: September 04, 2024

The sun has long been a sign of energy and life, and presently it shows a powerful and practical resource in the form of solar power. As we enhance our understanding of power, solar energy is becoming a cornerstone of sustainable and clean power solutions globally. India, with its rich solar resources, is at the forefront of this transformative shift towards renewable energy.

India’s Solar Energy Market

India's solar energy industry has witnessed remarkable growth, underscoring its potential as a substantial player in the worldwide renewable energy landscape. In 2023, the Indian solar energy industry produced a revenue of USD 10.4 billion. Projections say that the industry will experience a compound annual growth rate of 13.4% during the projection period, potentially attaining USD 24.9 billion by the end of 2030. This strong development highlights India’s commitment to leveraging solar power to fulfil national and global energy requirements.

As of March 31, 2024, India’s installed rooftop solar (RTS) volume was 11.87 GW. This shows an extraordinary surge of 2.99 GW from the past year, marking the highest annual growth reported.

Despite this development, India has a long way to go to harness its RTS potential fully with a projected overall RTS potential of approximately 796 GW, and an aim of 100 GW by 2030 to support India’s broader renewable power goals, there remains a substantial gap to bridge.

The Jawaharlal Nehru National Solar Mission

The Indian government introduced the Jawaharlal Nehru National Solar Mission in January 2010, representing a key initiative target at quickening the development of solar power in the nation. The mission initially targeted the installation of 20 GW of solar energy, including RTS, in 3 phases: 2010-2013, 2013-2017, and 2017-2022.

Knowing the sector's potential, the government revised this aim in 2015 to 100 GW by 2022, with 40 GW precisely allocated to rooftop solar. By December 2022, India attained an installed RTS capacity of about 7.5 GW, prompting an extension of the 40 GW target to 2026.

Key Government Initiatives and Policies Driving Solar Growth

Many government steps and guidelines have been instrumental in propelling solar growth in India:

Started: 2010

National Solar Mission (NSM): The NSM targets to position India as a worldwide leader in solar power. It supports the nation's Nationally Determined Contributions (NDCs), which include attaining 50% of electric power installed capacity from non-fossil fuel-based resources and decreasing emission intensity by 45% from 2005 levels by 2030.

Solar Park Scheme

Started: 2014

Current Status: This scheme has been pivotal in India's solar strategy, with over 50 GW of capacity installed across numerous large-scale parks. Major projects include the Pavagada Solar Park in Karnataka and the Kurnool Ultra Mega Solar Park in Andhra Pradesh, with several more in development.

Funding Allocated: INR 15,000 crore (about $2 billion) for infrastructure, land acquisition, and grid connectivity.

Viability Gap Funding (VGF) Scheme

Started: 2011

Current Status: Aims to bridge the financial gap for solar projects, making them more attractive to investors. It has supported over 10 GW of solar capacity by providing subsidies and financial aid.

Funding Allocated: Approximately INR 20,000 crore (about $2.7 billion) to help bridge the financial gaps and encourage private investment.

Central Public Sector Undertaking (CPSU) Scheme

Started: 2016

Current Status: Encourages public sector enterprises to invest in solar projects, contributing significantly to the national solar capacity. Companies like NTPC, SJVN, and BHEL have initiated several projects under this scheme.

Funding Allocated: Around INR 7,500 crore (about $1 billion) for the development and operation of solar projects by public sector enterprises.

Canal Bank & Canal Top Scheme

Started: 2014

Current Status: Focuses on installing solar panels on canal banks and tops to optimize land use and enhance efficiency. Implemented in states such as Gujarat and Maharashtra, with ongoing expansions.

Funding Allocated: Approximately INR 4,000 crore (around $540 million) for installation and maintenance of solar panels on canal infrastructure.

Grid Connected Solar Rooftop Scheme

Started: 2015

Current Status: Supports the installation of solar panels on residential and commercial rooftops, with over 8 GW capacity installed. This scheme promotes decentralized energy generation.

Funding Allocated: Around INR 20,000 crore (approximately $2.7 billion) for subsidies, grid integration, and system maintenance.

The ‘Muft Bijli Yojana’: A Flagship Initiative for RTS Expansion

The ‘Pradhan Mantri Surya Ghar: Muft Bijli Yojana’ is a flagship initiative aimed at fitting 1 crore households with rooftop solar systems. The scheme offers up to 300 units of free electricity per month to participating households. With an average system size of 2 kW per household, the initiative aims to add a total RTS capacity of 20 GW.

• The scheme has a substantial financial outlay of Rs 75,021 crore, which includes:
• Central Financial Assistance for Consumers: INR 65,700 crore.
• Incentives for Distribution Companies: INR 4,950 crore.
• Capacity Building: INR 657 crore allocated for training professionals and creating a skilled workforce.
• Awareness and Outreach: INR 657 crore to promote adoption across rural and urban areas.
• This initiative also supports advanced solar technologies, energy storage solutions, and smart grid infrastructure to enhance the efficiency and reliability of RTS systems.

Challenges and Opportunities in Expanding RTS Capacity

Despite the progress made, there are several challenges and opportunities in expanding RTS capacity across India:

State-Level Variations: States like Gujarat, Maharashtra, and Rajasthan have made significant strides in RTS adoption. Gujarat, with an installed RTS capacity of 3,456 MW, owes its success to proactive policies, quick approval processes, and high consumer awareness.

Maharashtra, with a capacity of 2,072 MW, benefits from robust solar policies and a supportive regulatory environment. Rajasthan, with the highest RTS potential due to its large land area and high solar irradiance, has achieved a capacity of 1,154 MW.

In contrast, states like Uttar Pradesh, Bihar, and Jharkhand face challenges such as bureaucratic hurdles, inadequate infrastructure, and lack of public awareness. Addressing these challenges is crucial for tapping into their RTS potential.

Economic Viability: For rooftop solar to be a viable option for more households, it needs to be economically attractive. While government subsidies have helped lower costs, additional low-cost financing options are necessary. Expanding access to RTS loans can make solar adoption more accessible, similar to how bike or car loans are obtained.

Technological Advancements: Promoting research and development in solar technology, energy storage solutions, and smart-grid infrastructure can drive down costs and improve performance. Technologies such as drones and satellite imagery can help assess rooftop feasibility and optimize RTS system designs.

Workforce Development: Investments in training programs, vocational courses, and skill development initiatives are essential for building a skilled workforce to support RTS infrastructure. Programs like the ‘Suryamitra’ (solar PV technician) initiative, which trained over 51,000 technicians by December 2022, should be accelerated to meet growing demand.

Policy and Regulatory Framework: As the ‘Muft Bijli Yojana’ progresses, it is vital to review and update RTS policies, including net-metering regulations and grid-integration standards. This will help address emerging challenges and facilitate the smooth implementation of the scheme. Virtual and group net-metering options should be expedited for consumers with limited rooftop space.

Delhi Airport’s Green Energy Milestone

Delhi Airport has made significant strides in sustainability with a new 5.3 MW rooftop solar power plant added to its existing 7.84 MW airside solar installation. This expansion is part of a broader initiative to reduce carbon emissions by 200,000 tonnes annually, contributing to its goal of becoming a Net Zero Carbon Emission airport by 2030-well ahead of the global 2050 target.

DIAL (Delhi International Airport Limited) CEO Videh Kumar Jaipuriar emphasized the airport’s commitment to environmental sustainability, noting the use of solar power and hydropower for electricity needs. Additional green measures include the adoption of green buildings, electric vehicles, and enhanced operational efficiency.

Notably, in 2020, Delhi Airport achieved 'Level 4+' in the Airport Carbon Accreditation program, becoming the first in Asia-Pacific to do so. Recent innovations include the introduction of TaxiBots, which reduce aircraft engine use during taxiing, and a planned addition of 62 electric vehicles to replace diesel and petrol options by World Environment Day.

The Future Outlook: India’s Solar Energy Vision

India’s solar power installed capacity has reached approximately 70.10 GW as of June 30, 2023, positioning the country as the fifth-largest solar PV market globally. This achievement reflects the successful implementation of government policies, industry investments, and international collaborations.

Looking ahead, the solar energy sector in India is poised for further growth. The decline in solar technology costs, coupled with innovations such as floating solar farms and energy storage solutions, will drive expansion. The integration of solar power with the grid, improvements in infrastructure, and supportive policies will enhance the sector’s efficiency and reliability.

India’s commitment to solar energy is not just a national agenda but a significant contribution to global climate goals. The country’s efforts align with international climate agreements and set a precedent for other nations to follow.

Bloomberg New Energy Finance (BNEF) estimates that India will generate 75% of its electricity from renewable sources by 2050. This ambitious target underscores the critical role solar energy will play in meeting India’s future energy needs.

Major Solar Power Plants in India

Bhadla Solar Park

Located in Rajasthan, Bhadla Solar Park is the world’s largest solar park, covering 14,000 acres. It boasts a capacity of 2,245 MW and represents an INR 10,000 crore investment. The park is situated in a harsh, arid climate, with temperatures averaging between 46 and 48 degrees Celsius.

Pavagada Solar Park

In Karnataka, the Pavagada Solar Park spans 53 square kilometers (13,000 acres) and has a capacity of 2,050 MW. Completed in 2019, it is the second-largest solar park globally after Bhadla.

Kurnool Ultra Mega Solar Park

Located in Andhra Pradesh, Kurnool Ultra Mega Solar Park covers 5,932.32 acres and has a capacity of 1,000 MW. Commissioned on March 29, 2017, it involved an investment of ₹7,000 crore (US$980 million).

NP Kunta Ultra Mega Solar Park

Also known as Ananthapuram Ultra Mega Solar Park, it spans 7,924.76 acres in Andhra Pradesh and was commissioned in May 2016. It is owned by Andhra Pradesh Solar Power Corporation Private Limited (APSPCL).

Rewa Ultra Mega Solar Park

In Madhya Pradesh, Rewa Ultra Mega Solar Park is notable for breaking grid parity and is Asia’s largest single-site solar plant. It supplies power to Delhi Metro and was recognized with the World Bank Group’s President’s Award.

Charanka Solar Park

Located in Gujarat, Charanka Solar Park covers 2,000 hectares (4,900 acres) and is currently under development.

Kamuthi Solar Power Project

Situated in Tamil Nadu, the Kamuthi Solar Power Project spans 2,500 acres and is located 90 km from Madurai.

Kadapa Ultra Mega Solar Park

In Andhra Pradesh, this park covers 5,927.76 acres and is being developed by APSPCL in partnership with other organizations.

Ultra Mega Solar Power Projects

Introduced in December 2014, the Ultra Mega Solar Power Projects aim to establish at least 25 solar parks, adding over 20 GW of solar capacity. The Central Government supports these projects financially.

Enphase Energy’s Role in Driving Solar Change

Enphase Energy is at the forefront of the solar revolution, committed to advancing solar technology and enhancing its global impact. The company focuses on innovation, quality, and responsibility to contribute significantly to the growth and success of solar energy. Enphase Energy’s efforts align with the broader goals of increasing solar adoption, improving system efficiency, and supporting the transition to a clean energy future.

Conclusion

India's solar energy sector stands out as an example of leveraging resources to promote sustainable progress effectively. The country’s abundant solar resources coupled with policies and groundbreaking projects are not only meeting its energy demands but also making significant contributions to worldwide environmental conservation endeavours’ India forges ahead with its programs it is poised to have a pivotal influence, on shaping a more ecofriendly and enduring tomorrow.

Harnessing the capabilities of solar power is not only essential but imperative, for India's future energy landscape to be sustainable and environmentally friendly for generations to come.

India's ambitious goals for energy can be realized through the combined actions of growing rooftop solar energy capacity and advancements, in technology supported by favourable policies.