India’s Solar Power Push

• 26 Dec 2025

This editorial is based on “Create more space to let solar power flow” which was published in The Financial express on 16/12/2025. The article highlights how India’s rapid expansion of solar capacity contrasts with persistent bottlenecks in transmission, storage, and grid readiness 

For Prelims: Production Linked Incentive (PLI) schemes,Tapping Renewable Energy Potential in India,ISA,GTAM, PM-Surya Ghar: Muft Bijli Yojana,BESS, 

For Mains: India’s progress towards solar energy,key issues in the solar sector,measures to remove constraints

As India races toward its 500 GW renewable energy target, solar power has emerged as the backbone of the transition — yet the pace of generation is outstripping the capacity to transmit it. While solar projects are being commissioned rapidly, inadequate transmission infrastructure and land constraints are creating serious bottlenecks. The challenge now lies not in producing solar power, but in moving it efficiently across the country.Strengthening grid connectivity and unlocking private investment in transmission will determine whether India’s solar ambition truly delivers

How is India Progressing in Solar Power Development? 

• Capacity Expansion: India’s solar power capacity has expanded dramatically over the past decade, reaching around 129 GW in 2025, up from just 3 GW in 2014. 
  • This includes ground-mounted projects, rooftop solar, hybrid systems, and off-grid installations. Solar energy now forms a significant portion of India’s energy mix and propels India to achieve 500 GW of non-fossil fuel capacity by 2030. 
  • Western and northern states lead solar deployment due to high irradiation and available land.  
    • Rajasthan, Gujarat, Maharashtra, and Tamil Nadu are among the top solar producers, with Rajasthan alone having extremely high potential and targets for continued expansion.  
• Transmission Capacity and Grid Integration: While grid-interactive solar generation capacity expands fast, transmission infrastructure is being ramped up under initiatives like the Green Energy Corridor to evacuate renewable power efficiently. 
  • Currently, India’s total transmission system supports integration of large renewable capacity, with ongoing projects and long-term plans to strengthen interstate and intra-state connectivity to reduce curtailment. 
  •  Rooftop solar adoption is also growing, supported by schemes like PM Surya Ghar Yojana. Nearly 24 lakh households have adopted rooftop solar until December 2025 under the scheme. 
  • Solar Pumps are also being stalled under the PM-KUSUM scheme, integrated with grid connection. 
• Energy Trading and Market Mechanisms: Solar energy is increasingly participating in energy markets and power trading platforms like Green Term Ahead Market (GTAM), enabling utilities and industries to procure clean energy.  
  • Electricity exchanges facilitate sale of solar power through bilateral contracts, day-ahead markets, and renewable purchase obligations (RPOs) ensure demand. 
• Enhanced Focus on Battery Energy Storage Systems (BESS): To manage the intermittency of solar ("the sun doesn't shine at night"), the government has pivoted from "plain solar" tenders to "Round-the-Clock" (RTC) and hybrid tenders. 
  • The Ministry of Power has approved a Viability Gap Funding (VGF) scheme to support 30 GWh of Battery Energy Storage Systems (BESS). The ₹5,400 crore scheme is designed to catalyse nearly ₹33,000 crore in investments, with the objective of meeting India’s BESS requirements by 2028. 
• Domestic Manufacturing of Solar Modules:  India has transitioned from being a solar importer to a manufacturing hub to insulate itself from global supply chain shocks. India has achieved a landmark milestone of 100 GW of solar PV module manufacturing capacity enlisted under the Approved List of Models and Manufacturers (ALMM) for Solar PV Modules.  
  • This achievement reflects the country’s rapid progress in building a robust and self-reliant solar manufacturing ecosystem, aligned with the national vision of Atmanirbhar Bharat 
• Floating Solar and Agrivoltaics: As land acquisition becomes a challenge, India is moving solar panels onto water bodies and farmland. 
  • Projects like the Omkareshwar Floating Solar Park (600 MW) in Madhya Pradesh are leading the way. These systems reduce water evaporation while benefitting from the natural cooling effect of water, which increases panel efficiency. 
  • Also, under the "dual-use" land policy push, solar panels are installed at a height that allows crops to grow underneath. This provides farmers with a second source of income (selling power) without sacrificing food production 

What are the Major Challenges Associated With India’s Solar Power Sector? 

• Land Acquisition and Availability Challenges:  Large-scale solar projects require vast contiguous land parcels, often located in arid or semi-arid regions. In agriculturally rich or ecologically sensitive regions, land conversion also raises concerns about livelihoods and biodiversity loss. 
  • Projects often face delays due to overlapping land-use regulations, forest clearances, and wildlife protection norms, especially in ecologically sensitive zones.  
    • India witnessed a 44% decline in solar installations in 2023, largely attributed to land acquisition-related challenges.  
    • For example, projects in Rajasthan have faced timelines extension due to protection zones for the Great Indian Bustard. 
• Transmission and Grid Integration Constraints: While solar generation capacity has expanded rapidly, transmission infrastructure has not kept pace. Many solar parks face evacuation delays due to inadequate transmission lines and substations.  
  • Grid congestion, especially in high-generation states like Rajasthan and Gujarat, leads to power curtailment, reducing plant efficiency and investor confidence. 
    • For instance, Nearly 4,300 MW of solar power capacity in Rajasthan faces complete daytime curtailment due to inadequate transmission infrastructure. 
• Intermittency and Storage Limitations: Solar energy is inherently intermittent and dependent on daylight and weather conditions.  Limited availability of affordable energy storage technologies such as batteries or pumped hydro, restricts the ability to supply reliable round-the-clock power, posing challenges to grid stability. 
  • Lithium-ion batteries currently lead the market for solar storage, but they have limitations including safety concerns (e.g., thermal runaway), temperature sensitivity, and reliance on finite, geopolitically sensitive rare earth minerals like lithium and cobalt. 
    • Without effective and affordable storage, solar energy cannot provide 24/7 power. 
• Financial Stress in DISCOMs: State-owned DISCOMs remain financially stressed, largely due to borrowing for clearing past dues and meeting working capital needs. 
  • According to IEA, as of March 2025, distribution companies in India owed more than USD 9 billion in unpaid dues. The accumulated losses of distribution companies in India stood at USD 75 billion in 2023. 
  • This weakens investor confidence, causes payment delays to solar developers, and affects long-term power purchase agreements (PPAs). 
• Dependence on Imported Equipment: India relies heavily on imported solar modules, particularly from China, exposing the sector to supply chain disruptions, price volatility, and geopolitical risks. Despite initiatives like Production Linked Incentive (PLI) schemes, domestic manufacturing capacity remains limited. 
  • For instance, China still controls over 90% of the global supply for polysilicon and wafers. And, India has almost no indigenous commercial production of silica sand or high-grade wafers, resulting in a local value addition of only 30-40% for Indian-made modules. 
• Policy and Regulatory Uncertainty: Frequent changes in tariff structures, duties on imported components, and state-level policy variations create uncertainty for investors.  
  • Delays in signing power purchase agreements (PPAs) and inconsistent implementation of renewable purchase obligations (RPOs) further complicate planning. 
  • For instance, as of late 2025, an estimated 40–45 GW of awarded solar capacity remains "stranded" because Power Sale Agreements (PSAs) have not been signed. 
• Financing and Cost of Capital: Although solar tariffs have declined, access to affordable long-term finance remains a challenge, particularly for smaller developers. High interest rates, currency risks for foreign loans, and limited green financing options increase project costs. 
  • India’s cost of capital for grid-scale renewable energy is one of the lowest among its emerging market and developing economy counterparts. However, it is still 80% higher than in advanced economies. 
• Skill and Workforce Gaps: The rapid expansion of the solar sector requires a skilled workforce for installation, operations, and maintenance. However, shortages of trained technicians and engineers limit efficiency and long-term sustainability. 
  • The rapid scale-up of the PM Surya Ghar Yojana has led to the proliferation of "fly-by-night" installers who lack standardized certification, leading to poor-quality installations that pose fire risks and have lower energy yields.  
  • This "skill-quality gap" at the grassroots level undermines the long-term bankability of rooftop projects and discourages retail investors. 

What Reforms are Needed to Effectively Unlock India’s Solar Energy Potential?  

• Strengthening Land Access and Reducing Social–Environmental Conflicts: India must move beyond ad-hoc land acquisition by promoting land pooling, leasing models, and agrivoltaics, where solar panels coexist with agriculture, as seen in Japan and Germany.  
  • Large-scale use of wastelands and desert regions, similar to China’s desert solar parks in Gobi, can minimize displacement. 
  • Digitised land records, GIS mapping, and early community consultation, successfully applied in countries like Australia, can reduce disputes and project delays while improving social acceptance. 
• Expanding and Modernising Transmission Infrastructure: To match rapid generation growth, India must accelerate Green Energy Corridor (GEC) projects and plan transmission networks in parallel with solar parks. 
  • Countries like China have adopted long-term transmission planning linked to renewable clusters, ensuring minimal curtailment.  
    • India should also promote private sector participation in transmission through viability gap funding and performance-based tariffs, alongside smart grid deployment for real-time load balancing. 
• Ensuring Reliable Power through Storage and Hybrid Solutions: Addressing intermittency requires scaling up battery energy storage systems (BESS) and pumped hydro storage, as seen in Australia and the US, where storage is integrated with solar projects. 
  • India can incentivise hybrid solar–wind–storage projects and time-of-day tariffs to encourage round-the-clock clean power.  
  • Supporting domestic battery manufacturing under PLI and encouraging alternative technologies like sodium-ion batteries will strengthen long-term resilience. 
• Restoring Financial Health of Power Distribution Utilities: Global experience shows that renewable success depends on financially viable utilities. India must accelerate reforms under the Revamped Distribution Sector Scheme (RDSS), enforce timely tariff revisions, and reduce AT&C losses.  
  • Countries like Brazil and Chile have improved utility performance through smart metering, prepaid billing, and independent regulation—models India can adapt to restore investor confidence. 
• Reducing Import Dependence and Strengthening Domestic Manufacturing: To reduce vulnerability to global supply shocks, India should deepen local manufacturing across the solar value chain—from polysilicon to modules—similar to China’s integrated manufacturing ecosystem.  
  • The PLI scheme should be complemented with R&D support, technology transfer partnerships, and long-term procurement commitments to build scale and competitiveness. 
• Ensuring Policy Stability and Regulatory Predictability: Stable and predictable policies are critical for long-term investments.  
  • Countries like Germany and Denmark have demonstrated that consistent renewable policies attract sustained investment.  
  • India should avoid retrospective tariff changes, ensure timely signing of PPAs, and maintain transparent regulatory processes to build investor confidence. 
• Mobilising Affordable Finance and De-risking Investment: High cost of capital remains a barrier. Expanding green bonds, blended finance models, and multilateral funding, as seen in Chile and South Africa’s renewable auctions, can reduce financing costs.  
  • Credit enhancement mechanisms and sovereign guarantees can further unlock private capital, especially for large-scale solar and storage projects. 
• Building a Skilled and Future-Ready Workforce: Scaling solar deployment requires trained manpower across installation, operations, and maintenance.  
  • Countries like Germany and South Korea have integrated vocational training with renewable expansion. 
  • India can replicate this through expanded skilling programmes under Skill India and partnerships between industry, ITIs, and universities to ensure long-term sectoral sustainability.

Key Case Studies Related to India’s Solar Advancement 

• Kadapa(Andhra Pradesh) & Bhadla Solar Parks (Rajasthan): Successful models of large-scale solar deployment through land pooling, integrated planning, and dedicated transmission corridors. 
• Modhera, Gujarat- India’s First 24x7 Solar-Powered Village: Modhera represents the successful integration of heritage and high-tech. This project can make an entire community energy-independent while preserving the aesthetic of a historical site (the Sun Temple). 
• Cochin International Airport (CIAL), Kerala- The World’s First Fully Solar Airport: It made history in 2015 as the world's first airport fully powered by solar energy, achieving complete power neutrality through large solar plants. 
• Dhundi, Gujarat- The Solar Pump Cooperative: In 2016, six farmers from Dhundi village in Gujarat’s Kheda district formed the world’s first solar irrigation cooperative, Dhundi Saur Urja Utpadak Sahakari Mandali (DSUUSM). 
  • As highlighted by The Better India, the cooperative uses solar pumps for irrigation and sells surplus power to Madhya Gujarat Vij Company Ltd (MGVCL), turning farmers into solar entrepreneurs while halving irrigation water costs for the village. 
• Sanchi, Madhya Pradesh- India’s First Solar City: Sanchi, a historic Buddhist site in Madhya Pradesh, was declared India's first "solar city" in 2023, aiming to run entirely on solar power. 

Conclusion: 

India’s solar sector stands at the centre of its clean energy transition, playing a decisive role in achieving the Panchamrit commitments of 500 GW of non-fossil capacity, 50% energy from renewables, and net-zero emissions by 2070. Strengthening grid infrastructure, enabling domestic manufacturing, and improving policy coordination will be critical to unlocking the sector’s full potential. Aligned with SDG 7 (Affordable and Clean Energy), and SDG 13 (Climate Action), a resilient and inclusive solar ecosystem can drive India’s green growth while supporting energy security and climate commitments.

Drishti Mains Question

Despite rapid capacity expansion, India’s solar sector continues to face operational and infrastructural constraints. Analyse the key issues and suggest measures to ensure sustainable growth of solar energy in the country.

FAQs 

1.Why is solar energy important for India’s future? 
Solar energy helps India meet its clean energy targets, reduce import dependence, and achieve climate commitments under the Panchamrit goals.

2.What is India’s current solar capacity status? 
India has crossed 130 GW of installed solar capacity, making it one of the world’s leading solar power producers.

3.What are the major challenges facing the solar sector? 
Key challenges include land acquisition issues, transmission bottlenecks, storage limitations, and financial stress of DISCOMs.

4.How does solar energy support India’s climate commitments? 
Solar power directly supports India’s targets under the Paris Agreement and SDGs by reducing emissions and expanding clean energy access.

5.What is needed to strengthen India’s solar future? 
Stronger grid infrastructure, affordable storage solutions, stable policies, and domestic manufacturing are essential for sustainable growth.

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims 

Q. Consider the following statements: (2016)

1.The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.   

2.The Alliance includes all the member countries of the United Nations.   

Which of the statements given above is/are correct?   

(a) 1 only    

(b) 2 only   

(c) Both 1 and 2   

(d) Neither 1 nor 2   

Ans: (a) 

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Mains 

Q. India has immense potential for solar energy though there are regional variations in its developments. Elaborate. (2020)