What is the Scope of Solar Energy in India: A Detailed Overview

India has witnessed rapid growth in its renewable energy capacity. Solar energy in India has grown about 18 times in the last seven and a half years. 

Today, the Indian renewable sector ranks 4th on the list of the world’s most attractive renewable energy sectors. Solar and wind energy are the most abundant sources of renewable power in the country. 

Both solar and wind energy have immense potential – nothing could have been a better example of the bright future of the solar industry in India than the many schemes that PM Narendra Modi Launched on 30th July 2022.

Intrigued? Want to learn more about the scope of renewable energy sources? If so, dive in for details.

An Overview of Solar Energy in India 

Solar energy in India has vast potential. Using sunlight as an energy source emerged during the industrial ages. The future looks very bright because sunlight will never exhaust

Solar energy in India has had a noticeable impact on the energy scenario in the past few years. If we effectively use this energy resource, we can quickly meet the energy requirements of the entire country. 

Solar energy in India has also benefited millions of people across the country. With its distributed applications, many Indian homes have met their power requirements by installing rooftop solar panels. 

But that’s not all!

There are many other benefits of using solar energy in India, such as – 

  • – Reduction of life-threatening diseases such as cancer and tumors that are a result of pollution caused by coal and other fossil fuels.
  • – Women in rural India – where there aren’t many modern facilities – don’t have to spend long hours cooking and working in a smoky kitchen.
  • – More employment at the rural level.
  • – An enhancement in the standard of living.
  • – Increase in financial opportunities. 

Growth of the Solar Industry in India 

As stated previously, solar energy in India has massive potential. In fact, most parts of the country receive about 4-7 kWh per sq. metre of sunlight daily. 

The government has also introduced many interesting schemes to encourage the manufacture of solar cells and modules in India. 

What are the Advantages of Solar Energy in India? 

There are innumerable benefits that solar energy in India offers. Let’s find out some:

  • – Solar energy is environmentally-friendly. It doesn’t release any air toxic gases like CO2 during usage. Thus, solar energy in India is a blessing to the environment. Pollution that’s still going strong at alarming rates will drastically drop once more and more people will start using solar energy.
  • – Many rural areas in India can use solar energy for various applications. It can be used for cooking, drying, heating, charging devices, and a lot more. 
  • Solar energy in India also offers various benefits to the urban population. Rooftop solar panels have been utilising solar power in the best way.  
  • – Solar energy is one of the best alternatives to non-renewable sources of energy.
  • – Another great advantage is that solar energy is inexhaustible and, thus, abundant. Power generation from exhaustible fossil fuels tends to be very expensive. If you look at it, solar energy in India is a much cheaper alternative to the toxic power that comes from coal.

That’s all about the current scenario of solar energy in India, but what about its future? Is it bright? Let us find out!

What is the Future of the Solar Energy Industry in India? 

Apart from BCD or Basics Customs Duty, the government has announced various projects to encourage the use of solar energy in India. Proposals for many large projects have also been announced. 

Before we walk you through the aisles of many such pathbreaking solar projects launched in India, let’s give you a glimpse of the ground-breaking, real-time scenario. 

On the 30th of July 2022, PM Narendra Modi announced the National Subsidy Scheme for homeowners across the entire nation. 

This game-changing policy comes at the right time when the country is getting to know the benefits of solar adoption. 

A National Solar Portal was launched at 12:30 PM – purpose? To simplify subsidies for all. Both solar companies and homeowners will benefit from this scheme.

Also called DBT – Direct bank transfer – the scheme empowers homeowners in the following ways:

  • – They get to pick an empanelled vendor of their choice.
  • – They have the entire National Solar Portal at their disposal to apply for the subsidy. 
  • – As a consumer, even if your state doesn’t have an active subsidy program yet, you can apply for a subsidy through the National Portal.
  • – After the installation and commissioning of the solar system, you’ll get the subsidy in your bank account within 30 days.

The benefits that solar companies will draw from the One Nation, One National Portal include the following:

  • – Locked funds have been the biggest hurdle that installation companies face under the state-run subsidy programs. Customers do not pay their vendors the entire money for the installation of the solar system. The discom is responsible for disbursing the subsidy and paying the solar companies, but it takes 3 to 6 months. It substantially reduces the scope of growth. Now that there’s a National Portal where customers apply for the subsidy, installation companies will get the entire installation cost upfront.
  • – The simplified subsidy will encourage more and more companies to register with their respective state discom. The more vendors, the greater will be the chances of deploying solar systems worth the allocated target.

That being said, let’s now walk you through some stats:  

  • – In 2014, Prime Minister Narendra Modi established India’s biggest solar power plant in Diken, in the Neemuch district of Gujarat.
  • – Using the Thar Desert as a site for solar power generation is one of India’s most ambitious solar dreams. The government estimated that the Thar Desert can be used to generate up to 2,100 GW of solar energy. 
  • – The Government had set a target of installing 175 GW of renewable energy in 2022, with 100 GW and 60 GW from solar and wind energy, respectively.
  • – Around 66 MW of solar power has already reached many rural areas across India. This has dramatically increased the efficiency of solar water pumps, lanterns, and street lighting systems. 

Apart from these, there are various other schemes that the government has specifically curated to boost the scope of solar energy in India.  

  1. The government plans to spread out solar power projects throughout the country.
  2. The government had announced the scheme, “Developments of Solar parks and Ultra-Mega Solar Power Projects”. The aim was to reduce project costs and better allocation of the solar installation quota. This scheme allowed many companies to install projects in a plug-and-play model. 
  3. In 2019, the government announced a scheme to distribute seven million solar study lamps in Assam, Jharkhand, Orissa, U.P., and Bihar. 

As of now, the government has been focusing on popularising the use of solar energy for homeowners. Many subsidy schemes are going on in the country. The government offers financial help to people who install a solar system at home.

Some of the most ambitious schemes and solar projects by the government:

  1. PM Kusum scheme to facilitate farmers with reliable power supply from solar systems. Purposes? Installing solar pumps for irrigation and an additional source of income.
  2. Asia’s most ambitious ultra mega solar power project, the REWA solar plant.
  3. Omkareshwar Dam floating solar farm: India’s largest and most ambitious floating solar power plant project
  4. PM Kisan Urja Suraksha Evam Utthan Mahabhiyan
  5. Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
  6. Integrated Power Development Scheme (IPDS)
  7. Solar rooftop subsidy scheme yojana

Soon-to-be-launched solar schemes

  1. Green Hydrogen Mobility Project, Ladakh 
  2. Green Hydrogen Natural Gas Blending Project, Gujarat
  3. Nokh Solar Project (735 MW) Rajasthan


The Government aims to develop a green country. As India is gradually increasing the use of solar and wind energy, the CEA stated that renewable energy generation might increase from 18% to 44% by 2029-30 in the country. 

In the future, India aims to portray a “green” environment with rooftop solar systems in all Indian households. There are also many hybrid solar wind systems that are being used to harness the power of both these resources to generate clean electricity. 


1. What is the objective of JNNSM Phase-II?

With JNNSM Phase-II, the government announced the installation of over 5000 MW grid-connected SPV Power Projects. 

The government plans to scale up the sizes of projects and facilitate the implementation of solar power projects to meet its objectives.

2. How has the ultra-mega solar park model impacted the Indian solar industry?

The ultra-mega solar park model has successfully increased the solar capacity deployment in India. 

3. What were the consequences of the seven million solar study lamps scheme? 

Under the seven million solar study lamps scheme, India noticed the emergence of 832 solar shops, and around 7,436 women underwent training to become solar lighting technicians.