India’s Solar Growth Enters a New Era: Policy Push for Clean Energy Transition

Why in News?

India’s solar sector has entered a new phase with the approval of the Pradhan Mantri Surya Sarovar Yojana on 31 July 2026. The scheme aims to develop 5,000 MW of floating solar photovoltaic projects with co-located energy storage systems, strengthening India’s clean energy transition.

India’s Solar Rise: Capacity Expansion

• India’s solar capacity has expanded from around 3 GW in 2014 to 162.15 GW by 30 June 2026. This rapid rise has made solar energy one of the strongest pillars of India’s renewable energy sector.
• Solar expansion has been driven by policy support, infrastructure creation, competitive bidding, rooftop solar adoption, agricultural solarisation and domestic manufacturing.

Solar Capacity Composition

Major solar States include Rajasthan, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra.

India’s Solar Journey: Chronology

Pradhan Mantri Surya Sarovar Yojana

The Pradhan Mantri Surya Sarovar Yojana is the latest major step in India’s solar journey.

Key Features

• Approved on 31 July 2026
• Supports 5,000 MW of Floating Solar Photovoltaic projects
• Includes co-located Energy Storage Systems
• Minimum storage capacity: 2 hours / 10,000 MWh
• Outlay: ₹5,070 crore
• Implementation period: FY 2026–27 to FY 2030–31
• Uses reservoirs and industrial ponds
• All States and Union Territories are eligible

Significance

The scheme reduces pressure on scarce land, improves grid reliability and helps States manage peak power demand. It is based on the National Institute of Solar Energy assessment, which estimates India’s floating solar potential at about 102.18 GWp.

It is expected to reduce nearly 10 million tonnes of CO₂ emissions annually, generate 16,000–17,000 full-time equivalent jobs, and promote domestic manufacturing of floatation systems, PV cells, modules and energy storage systems.

Major Solar Schemes and Policy Architecture

India’s solar expansion is supported by five major policy pillars.

1. Vision: Panchamrit and Mission LiFE

At COP26, India announced the Panchamrit goals, including 500 GW non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Mission LiFE promotes sustainable consumption and citizen participation in climate action.

2. Demand Creation: National Solar Mission and RPOs

The National Solar Mission created long-term policy direction for solar deployment. Renewable Purchase Obligations require obligated entities to procure a fixed share of electricity from renewable sources. The RPO target for 2026–27 is 35.95%.

3. Cost Reduction: Competitive Bidding

Transparent competitive bidding and e-reverse auctions reduced solar tariffs from around ₹18/unit in 2010 to ₹2.44/unit at Bhadla in 2017, making India one of the world’s lowest-cost solar markets.

4. Infrastructure Support

Solar parks and the Green Energy Corridor provide land, transmission and evacuation infrastructure for large-scale solar deployment.

5. Manufacturing Support

The PLI Scheme for High-Efficiency Solar PV Modules and ALMM strengthen domestic manufacturing and quality assurance.

Solar Parks, Green Energy Corridor and Infrastructure Support

• The Solar Parks Scheme was launched in December 2014 with an initial target of 20 GW, later enhanced to 40 GW.
• As of February 2026, 54 solar parks with sanctioned capacity of 39,188 MW have been approved.

Examples

• Bhadla Solar Park, Rajasthan — 2,245 MW, one of the world’s largest solar complexes
• Pavagada Solar Park, Karnataka
• Rewa Ultra Mega Solar Park, Madhya Pradesh

Andhra Pradesh

Andhra Pradesh has 5 solar parks with sanctioned capacity of 4,200 MW, making it an important solar State.

Green Energy Corridor

The Green Energy Corridor Programme supports transmission of renewable energy from generation centres to demand centres. It has enabled evacuation of 24,567.8 MW of renewable energy and is planned to support evacuation of around 44 GW across ten States.

PLI, ALMM and Domestic Solar Manufacturing

Production Linked Incentive Scheme for Solar PV

The PLI Scheme for High-Efficiency Solar PV Modules aims to promote domestic manufacturing and reduce import dependence.

Key Facts

• Total outlay: ₹24,000 crore
• Tranche I: ₹4,500 crore, approved in 2021
• Tranche II: ₹19,500 crore, approved in 2022
• Letters of Award issued for 48,337 MW manufacturing capacity
• Incentives linked to sales, efficiency and local content

As of September 2025, the scheme had attracted around ₹52,900 crore investment and generated about 44,400 jobs.

Approved List of Models and Manufacturers

• ALMM, introduced in 2019, is a quality assurance framework for solar PV modules and cells. It ensures that only approved models and manufacturers are used in eligible solar projects.
• Together, PLI and ALMM strengthen India’s domestic solar ecosystem, reduce import dependence and improve quality confidence for developers and consumers.

Solar for Households and Farmers

PM Surya Ghar: Muft Bijli Yojana

Launched on 13 February 2024, PM Surya Ghar is the world’s largest domestic rooftop solar programme.

Key Features

• Outlay: ₹75,021 crore
• Target: one crore households
• Up to 300 units of free electricity per month
• Subsidy support for rooftop solar
• Collateral-free loans
• Dedicated national portal for registration, installation and subsidy disbursement

PM-KUSUM Scheme

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, launched in 2019, promotes solar energy use in agriculture.

Components

• Component A: Decentralised solar power plants on barren or fallow land
• Component B: Standalone solar agriculture pumps
• Component C: Solarisation of grid-connected agricultural pumps

Key Achievements

• Nearly 11.49 lakh off-grid solar pumps installed
• More than 15.89 lakh agricultural pumps covered through feeder-level solarisation
• Around 1,726 MW decentralised solar capacity commissioned on farmers’ land
• Over 21.77 lakh farmers benefited

PM-KUSUM provides reliable daytime power, reduces diesel dependence and allows farmers to earn by selling surplus power where eligible.

Distributed Solar Growth

India’s solar transition is not limited to large solar parks. Rooftop solar and agricultural solarisation are becoming important.

In FY 2025–26, distributed solar solutions contributed 16.3 GW, or 36% of the 44.61 GW solar capacity added during the year.

Of this:

• 7.6 GW came from PM-KUSUM
• 8.7 GW came from rooftop solar

This shows that households and farmers are becoming active energy producers.

India’s Global Solar Leadership

International Solar Alliance

The International Solar Alliance was co-founded by India and France at COP21 in Paris in 2015. It promotes solar deployment, finance, technology sharing and capacity-building among member countries.

8th ISA Assembly

The 8th Assembly of ISA was held in New Delhi in October 2025. It brought together ministers and delegates from more than 125 countries and focused on solar finance, resilient supply chains, inclusive access and technology cooperation.

One Sun One World One Grid

The One Sun One World One Grid initiative was proposed by India in 2018. It aims to create an interconnected global renewable energy grid. At COP26, India and the United Kingdom launched the Green Grids Initiative–OSOWOG to promote cross-border renewable energy trade.

India also helped build consensus during its G20 Presidency on tripling global renewable energy capacity by 2030.

Significance of India’s Solar Push

1. Energy Security

Solar power reduces dependence on imported fossil fuels and strengthens domestic energy availability.

2. Climate Action

Solar expansion supports India’s NDCs, Panchamrit commitments and net-zero target.

3. Manufacturing and Jobs

PLI, ALMM and PM Surya Sarovar promote domestic manufacturing, value addition and clean energy employment.

4. Rural Transformation

PM-KUSUM supports farmers through reliable power, reduced diesel use and additional income opportunities.

5. Household Savings

PM Surya Ghar reduces electricity bills and encourages rooftop solar adoption.

6. Global Leadership

ISA and OSOWOG strengthen India’s role in global clean energy diplomacy.

Challenges

1. Grid Integration

Large solar capacity requires stronger transmission, storage and balancing systems.

2. Storage Cost

Solar is intermittent, so affordable batteries and energy storage systems are essential.

3. Land Pressure

Ground-mounted solar projects need large land parcels. Floating solar can help reduce this pressure.

4. Import Dependence

India must strengthen domestic production of wafers, cells, modules and storage technologies.

5. DISCOM Readiness

Rooftop solar and RPO implementation require strong cooperation from distribution companies.

Way Forward

1. Scale Floating Solar with Storage

PM Surya Sarovar should be implemented effectively to reduce land pressure and improve grid reliability.

2. Strengthen Green Energy Corridors

Transmission networks must grow in line with renewable energy capacity.

3. Deepen Domestic Manufacturing

PLI and ALMM should be used to build a complete solar value chain.

4. Expand Rooftop Solar Access

Subsidies, loans and digital portals must remain simple and citizen-friendly.

5. Solarise Agriculture Sustainably

PM-KUSUM should be linked with efficient irrigation, feeder management and farmer income.

6. Promote Global Solar Cooperation

India should use ISA and OSOWOG to expand solar finance, technology transfer and Global South cooperation.

Conclusion

India’s solar growth shows how coordinated policy can transform an emerging technology into a mainstream energy source. From solar parks and rooftop systems to floating solar, agricultural pumps, domestic manufacturing and global alliances, India is building a complete solar ecosystem. The next phase must focus on storage, grid reliability, local manufacturing and inclusive access, making solar power central to India’s clean energy transition.