India is in the midst of an unprecedented renewable energy expansion and has set a target to achieve 500 GW of renewable energy by 2030. While the installed solar capacity stood at 62 GW in 2022, the plan is to expand this to 300 GW by 2030, requiring the addition of 30 GW annually.
Over half of India’s terrain is sunny and semi-arid, receiving 1,000 mm or less rainfall annually—too dry to support continuous canopy—giving the country immense potential to generate solar power.
However, several challenges prohibit India from fully utilising this potential:
• High import dependency:
Around 80% of India’s solar photovoltaic module market is controlled by Chinese imports, despite the government’s Production Linked Incentive (PLI) schemes and Basic Customs Duty (BCD) on imports to promote domestic manufacturing.
• Financing solar energy:
As state government and discom finances remain under stress, sustaining subsidies and tax cuts becomes difficult. Achieving cost parity with conventional sources like thermal energy remains a long-term challenge.
• High T&D losses:
Transmission and Distribution (T&D) losses are approximately 40%, reducing the cost-efficiency of solar power generation.
• Absence of a solar waste management policy:
Despite ambitious targets, India lacks a formal policy for managing solar waste, posing environmental concerns.
• Rooftop solar issues:
Implementation and grid integration challenges, including net-metering complications, hinder the effective expansion of rooftop solar projects.
• Land acquisition hurdles:
Large open areas required for solar installations are difficult to acquire, and delays and cost overruns plague even approved projects due to issues with land titling.
Conclusion:
Despite these challenges, solar energy remains vital for India’s net-zero emissions goal. Mobilising finance and technology, removing policy bottlenecks, and leveraging cooperation under the International Solar Alliance through an ecosystem approach will help India realise its full solar potential and achieve sustainable green growth.