Author: Renergo User

India has officially become the world’s third-largest producer of wind and solar electricity, surpassing Germany in a milestone that reflects the country’s expanding role in the global clean energy transition.

According to Ember’s Global Electricity Review 2024, wind and solar together contributed 10% of India’s electricity generation, with solar alone accounting for 7%.

Solar power generation has doubled since 2021, and the country added 24.5 GW of solar capacity in 2024, more than twice the addition in the previous year.   India now stands behind only China and the United States in solar energy production and recorded the fourth-largest increase in solar generation globally, contributing an additional 20 TWh of solar electricity.

As Phil MacDonald, Ember’s Managing Director, noted,

“Solar power has become the engine of the global energy transition. Paired with battery storage, solar is set to be an unstoppable force.”

 

The achievement has garnered international recognition. UN climate change chief Simon Stiell described India as a “solar superpower” and emphasized that fully embracing the global clean energy boom could further accelerate the country’s economic growth.

India’s Manufacturing Expansion in Solar PV

 India’s position in the global solar industry is further reinforced by strong domestic manufacturing growth.

This expansion was primarily driven by demand from ongoing solar projects and the reimposition of the Approved List of Models and Manufacturers (ALMM) order, which came into effect in April 2024.   Monocrystalline modules made up nearly 59% of the production capacity, followed by TOPCon, polycrystalline, and thin-film technologies.

In a continued push to build domestic capacity, the Ministry of New and Renewable Energy added 8,067 MW of module manufacturing capacity to the ALMM in March 2025.

Further, solar cells will also fall under the ALMM scope starting June 2026, signaling a deeper regulatory commitment to quality and traceability in manufacturing.

India’s Renewable Energy Targets

 India’s renewable ambitions remain high. The country is targeting 50% of its installed electricity capacity to come from non-fossil fuel sources by 2030, which is in line with its updated climate commitments to the UNFCCC.

Additionally, the government aims to install 500 GW of non-fossil fuel capacity by 2030, a goal announced during COP26 in 2021.

Challenges in Scaling Clean Energy

Despite strong momentum, challenges persist.

A February 2025 report by Ember warned that India may fall short of its 2030 renewable energy target unless funding increases by at least 20% annually.

Rising electricity demand, coupled with the need for accelerated clean energy deployment, creates a complex dynamic.   As Neshwin Rodrigues, Senior Energy Analyst at Ember, observed:

“India has made notable progress in adopting renewables but now faces a major challenge: ensuring its clean generation grows fast enough to meet rising demand.”

India’s recent achievements underscore a strong commitment to solar and wind development, but meeting future targets will depend on sustained investment, policy support, and grid readiness.

As the country balances economic growth with energy transition, its role in shaping the global clean energy narrative is becoming increasingly significant.

For many farmers in India, irrigation costs are a major concern. Rising diesel prices and unreliable electricity make farming more expensive and less predictable. Solar-powered irrigation reduces costs, provides reliable water access, and supports sustainable farming.

For millions of farmers in rural India, this is possible with the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme. Started in 2019 by the Government of India, it’s helping farmers switch to solar energy, making it affordable and profitable.

Cost of Setting Up a Solar-Powered Irrigation System

Installing a solar-powered pump requires an upfront investment. The main costs include:

• Solar panels – Convert sunlight into electricity.

• Pump and motor – Draw water from the ground or a water source.

• Battery or inverter (optional) – Stores power for later use.

• Installation and setup – Costs depend on location and system size.

A 5HP solar pump system (suitable for small to medium farms) may cost around ₹2.5 – ₹3 lakh before subsidies. Larger systems for bigger farms cost more.

While this may seem expensive, solar pumps have low running costs. Farmers do not need to buy diesel or worry about rising electricity prices. Over time, these savings add up.

How the PM-KUSUM Scheme Works

1. Subsidy of up to 60%

• The central and state governments cover up to 60% of the system’s cost.
• This reduces the financial burden on farmers.

2. Bank loans for 30% of the cost

• Farmers can get low-interest loans to cover another 30%.
• This means they only pay 10% upfront.

3. Sell excess electricity

• Farmers who install solar panels larger than their pump’s needs can sell extra power to the grid.
• This creates an extra income source.

For example, a 5HP solar pump costing ₹3 lakh may only require an upfront payment of ₹30,000, with the rest covered by subsidies and loans.

Long-Term Savings for Farmers

Switching to solar irrigation leads to major cost savings.

1. No fuel costs – A diesel pump uses about 3 liters of diesel per hour, costing ₹250 per day for 4 hours of operation. Over a year, this adds up to ₹75,000+ in diesel costs. Solar pumps eliminate this expense.

2. Low maintenance – Solar pumps have fewer moving parts than diesel pumps, leading to lower maintenance costs.

3. Income from excess power – Under PM-KUSUM, farmers can sell extra electricity to the grid, turning their solar system into a source of extra income.

Overall, a solar irrigation system pays for itself in 5-7 years through savings and incentives.

Why Should Farmers Switch to Solar?

✔ Lower costs – Save on diesel and electricity bills.
✔ Reliable water supply – No dependence on power grids.
✔ Government support – Subsidies and low-interest loans make it affordable.
✔ Environment-friendly – Solar reduces pollution and supports sustainable farming.
✔ Extra income – Sell surplus electricity for additional earnings.

With rising diesel prices and increasing electricity costs, solar irrigation is the future of farming in India. The PM-KUSUM scheme makes it easier for farmers to adopt solar and enjoy long-term financial benefits.

Low progress, loan delays, and lack of know-how are issues. The PM-KUSUM scheme aims to help 3.5 million farmers get solar pumps by 2026.

By investing in solar today, farmers can secure their future, reduce costs, and make agriculture more sustainable.

India’s solar sector continues to break records, demonstrating the country’s commitment to renewable energy. In 2024, rooftop solar installations reached an unprecedented 3.2 GW, marking over 86% increase from the previous year.

This surge pushed India’s total rooftop solar capacity to 13.7 GW by the end of December 2024, a milestone that underscores the nation’s rapid adoption of sustainable energy solutions.

Driving Forces Behind the Growth

A significant contributor to this achievement was the PM Surya Ghar: Muft Bijli Yojana, a government initiative aimed at promoting residential solar installations. With strong support and subsidies, this program encouraged widespread adoption, leading to residential consumers accounting for 74% of all new rooftop installations in 2024.

The remaining contributions came from the industrial (19%), commercial (6%), and government (0.8%) sectors.

The capital expenditure (CAPEX) model dominated the installation landscape, comprising 88% of the year’s installations, while the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for the rest.

State-Level Leadership in Solar Expansion

Certain states have emerged as leaders in rooftop solar adoption, playing a pivotal role in driving the overall growth of the sector.

• Gujarat, contributing 36% of total rooftop solar installations in 2024.
• Maharashtra, accounting for 20% of installations.
• Kerala, adding 9% to the total rooftop solar capacity.

These states have benefited from proactive policy frameworks, financial incentives, and streamlined regulatory processes that have made solar adoption easier and more attractive.

Challenges & Future Outlook

While the record-breaking installations indicate strong momentum, sustaining this level of growth presents challenges. Some of the key hurdles include:

• Fluctuating Module Prices: The cost of solar panels and associated equipment has seen volatility due to supply chain disruptions and international market dynamics. Stabilizing these costs will be crucial for continued growth.
• Financing & Awareness: While government subsidies have helped, access to affordable financing options remains a challenge, particularly for middle-income households and small businesses.
• Grid Integration & Storage: As rooftop solar adoption grows, grid stability and energy storage solutions will become increasingly important to manage excess power and ensure seamless integration.

Despite these challenges, the outlook remains optimistic. With continued government support, falling technology costs, and increased consumer awareness, India is well on track to achieve its ambitious renewable energy targets.

India’s record-breaking rooftop solar installations in 2024 highlight the nation’s commitment to renewable energy and its potential to lead in sustainable development.

Continued support from government initiatives, coupled with active participation from residential and industrial sectors, will be crucial in maintaining this upward trajectory and achieving long-term energy goals.

The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the world’s largest domestic rooftop solar initiative, has crossed a historic milestone with over 10 lakh homes now powered by solar energy in one year as per an official statement from the Ministry of New and Renewable Energy (MNRE).

Making Solar Power Accessible to Millions

Launched by Prime Minister Narendra Modi on February 13, 2024, the initiative is designed to make rooftop solar installations affordable and accessible. With 47.3 lakh applications already received, the government has disbursed Rs. 4,770 crore in subsidies to over 6.13 lakh households.

A key feature of the scheme is its easy financing options, including collateral-free loans up to Rs. 2 lakh at a subsidized 6.75% interest rate. This ensures that homeowners, regardless of financial standing, can harness solar energy.

State-Wise Adoption in India

Several states have made remarkable progress:

1. Gujarat leads with 3,51,273 solar-powered households (41.47% of total installations).
2. Uttar Pradesh and Kerala follow closely with 73,602 and 65,423 households, respectively.
3. Chandigarh and Daman & Diu have achieved 100% of their rooftop solar targets for government buildings.

The government aims to reach 1 crore solar-powered households by 2026-27, setting the stage for a self-sufficient energy future.

The Economic & Environmental Impact

The benefits of PMSGMBY extend far beyond just free electricity:

• Massive cost savings:

Households see a drastic reduction in electricity bills, while the government is expected to save Rs. 75,000 crore annually.

• Lower carbon footprint:

Each rooftop installation offsets carbon emissions equivalent to planting 100 trees.

• Job creation:

The initiative is expected to generate 17 lakh direct jobs in the renewable energy sector.

What’s Next for India’s Rooftop Solar Journey?

The program is set to add 30 GW of solar capacity through residential rooftop installations by 2027. With a 25-year system lifespan, these solar panels will generate 1,000 billion units (BU) of electricity, preventing 720 million tonnes of CO2 emissions.

A unique addition to the initiative is the creation of “Model Solar Villages”, where one village per district is selected to showcase large-scale solar adoption. With Rs. 1 crore allocated per village, these communities will serve as benchmarks for clean energy self-reliance.

At REnergo, we specialize in helping homeowners, businesses, and industries navigate this transition smoothly. From system selection to installation and subsidy facilitation, we ensure that you make the most of this transformative initiative.

With a target of 500 GW of non-fossil power capacity by 2030, India is making significant progress, but not at the pace required.

In 2024, India added nearly 28 gigawatts (GW) of solar and wind capacity, setting a new record for annual additions. Solar power alone accounted for 70% of these additions, reinforcing its role as the backbone of India’s energy transition.

Yet, despite this momentum, fossil fuels still contributed more than two-thirds of the total increase in power generation last year.

According to the latest report from Global Energy Monitor (GEM), India must double its annual solar and wind capacity additions over the next five years to stay on track to meet its 2030 targets.

Why Solar is India’s Best Bet for Clean Energy Growth

1. Utility-Scale Solar Must Accelerate

India’s renewable pipeline is strong, but its expansion must outpace fossil fuel growth. Despite record installations, India still plans to increase its coal-fired capacity by 80 GW by 2031-32, raising concerns about long-term energy sustainability.

Solar, especially large-scale utility projects, must be deployed at a much faster rate to ensure that renewables can offset the expansion of coal. The growing adoption of floating solar farms, hybrid solar-wind projects, and agrivoltaics presents a significant opportunity to push solar deployment beyond traditional land-based installations.

2. Strengthening Transmission and Storage Infrastructure

One of the biggest challenges facing India’s solar growth is inadequate transmission infrastructure and limited energy storage capacity. While solar power is abundant, its intermittent nature requires robust storage solutions and grid integration to ensure reliability.

Investing in advanced battery storage technologies, pumped hydro storage, and smart grid solutions is essential to improve grid stability and maximize the use of solar power.

The government must also accelerate the expansion of high-voltage transmission lines to facilitate seamless distribution of solar energy from generation hubs to high-demand areas.

3. Policy and Financial Support is Key

While solar costs have declined significantly in recent years, higher financing costs remain a key barrier to large-scale adoption.

Public-private partnerships, innovative financing models, and policy interventions, such as long-term power purchase agreements (PPAs) and viability gap funding (VGF) will play a critical role in making solar projects more viable and bankable.

Read more about how you can take advantage of Government Incentives here.

4. Expanding Beyond Utility-Scale

While utility-scale projects are leading the charge, rooftop solar and decentralized solar solutions must be aggressively expanded.

Urban centers must increase adoption of rooftop solar on commercial and residential buildings.

Rural electrification efforts should prioritize off-grid solar solutions to power remote communities, reducing dependency on fossil fuels.

Industrial and agricultural sectors must integrate captive solar power generation, reducing operational costs while advancing sustainability goals.

India’s ability to meet its 2030 energy targets depends on how fast and effectively it can scale solar deployment. The challenge is not just about adding capacity, it’s about ensuring that solar energy replaces fossil power as the dominant source in India’s energy mix.

At REnergo, we are committed to driving India’s solar transformation, supporting large-scale projects, advocating for innovation, and enabling a cleaner, more sustainable energy future.

In Nepal, access to reliable electricity remains a significant challenge for many rural and remote communities. While urban centers benefit from grid connectivity, an estimated 40% of the rural population still lacks access to dependable power.

As of 2025, Nepal is intensifying its commitment to sustainable development, with solar energy emerging as a strategic solution for electrifying these underserved areas.

Recent Developments in Renewable Energy

In October 2024, Nepal hosted Renewable Energy Week 2024, a transformative event dedicated to promoting sustainable energy solutions and fostering a clean energy future. The event facilitated the sharing of success stories and collaboration on strategies to accelerate the transition to sustainable energy.

Additionally, in September 2024, the Nepal Infrastructure Summit 2024 was held in Kathmandu, gathering policymakers, industry leaders, and innovators to discuss the critical role of clean energy in the nation’s development.

Companies like Huawei Digital Power showcased their green energy solutions, highlighting innovations in solar power and energy storage systems.

Government Initiatives and Key Developments

The Nepalese government has taken concrete steps to accelerate solar adoption. The Alternative Energy Promotion Centre (AEPC) is spearheading efforts to expand off-grid solar power, targeting 1,500 remote villages by 2030.

At the Power Summit 2023, held in Kathmandu, industry leaders and policymakers convened to discuss strategies for rural electrification. Minister of Energy, Water Resources, and Irrigation Shakti Bahadur Basnet emphasized the government’s commitment to achieving universal electrification by leveraging solar power.

Discussions focused on financial models, public-private partnerships, and technical innovations to scale up solar solutions in rural Nepal.

The Role of Off-Grid Solar Solutions

The Nepal Electricity Authority (NEA) reports that 99% of the population now has access to electricity, with 97% connected to the national grid and 2% relying on off-grid solutions, including micro-hydro and solar plants.

By harnessing the abundant solar energy available, Nepal is making strides toward energy independence and economic development in its rural regions.

The demand for off-grid solar solutions is increasing, driven by advancements in technology, decreasing costs, and strong government support. With reliable solar power, rural communities can enhance productivity, improve quality of life, and create new economic opportunities.

Nepal’s solar revolution is more than just an energy solution. It is a catalyst for economic empowerment and sustainable development. By prioritizing rural electrification, Nepal is setting an example for how clean energy can transform lives and communities.

The push for localized solar manufacturing, strategic investments, and strong policy support is essential to sustaining this momentum.

At REnergo, we are committed to staying at the forefront of renewable energy trends, providing insights into Nepal’s solar progress, and supporting initiatives that drive sustainability and development.

With an ambitious goal of achieving 500 GW of non-fossil fuel-based energy by 2030, India is making a decisive push toward self-reliance in solar manufacturing.

The government’s focus on reducing dependency on imported solar cells and modules is shaping the future of India’s renewable energy sector.

The Drive Towards Domestic Solar Manufacturing

For years, India has been heavily reliant on imported solar components, mainly from China. While this approach has helped scale up solar installations rapidly, it has also left the sector vulnerable to price fluctuations and supply chain disruptions.

Recognizing this challenge, the Indian government has launched the Production-Linked Incentive (PLI) scheme, which aims to strengthen the country’s manufacturing capabilities by providing financial support to local producers.

The PLI scheme is designed to not only boost manufacturing capacity but also ensure high-quality solar modules that can compete on a global scale. This move aligns with the broader vision of Atmanirbhar Bharat (Self-Reliant India), ensuring that India’s energy transition is built on a solid foundation of domestic innovation and production.

What Industry Leaders Are Saying

The shift towards local manufacturing is not just a government-driven initiative but also strong backing from industry leaders. M. S. Unnikrishnan, Managing Director of Thermax, emphasizes the critical need for India to develop a robust solar ecosystem that includes research, development, and large-scale manufacturing.

Similarly, Gautam Adani, Chairman of Adani Green Energy, has highlighted that achieving energy security requires India to be independent in its production of solar modules and cells.

Their vision aligns with India’s long-term sustainability goals. As the demand for renewable energy rises, having a self-sufficient manufacturing base will not only drive economic growth but also create thousands of jobs across the country.

Key Policy Discussions and Industry Trends

At major renewable energy summits and policy discussions, experts are focusing on three critical aspects:

1. Quality Control and Standardization – Ensuring that India’s solar modules meet global efficiency and durability standards is a top priority. Domestic manufacturers must adopt advanced technologies to compete with international products.
2. Financial Incentives and Infrastructure Support – The government is actively working on expanding incentives beyond the PLI scheme, including tax benefits, subsidies, and easier access to financing for new manufacturing units.
3. Supply Chain Development – To reduce reliance on imported raw materials, India needs a comprehensive supply chain strategy that includes the production of polysilicon, wafers, and other critical components.

India’s transition to a self-reliant solar industry is not just about reducing imports, it’s about building a sustainable future powered by homegrown technology.

For businesses, investors, and stakeholders in the renewable energy sector, this is an exciting time. The opportunities in solar manufacturing are expanding rapidly, and those who adapt to these changes will be at the forefront of India’s green energy revolution.

At REnergo, we remain committed to staying ahead of industry trends, supporting the transition towards sustainability, and providing insights into the evolving solar landscape.

As India continues to push forward with its clean energy ambitions, we will keep bringing you the latest updates, expert opinions, and analysis on what’s shaping the future of solar energy in the country.

As the world accelerates its transition to renewable energy, one of the biggest challenges remains:

“How to store solar power efficiently for use when the sun isn’t shining?”

Solar energy is abundant and clean, but it isn’t always available. Battery storage systems are becoming essential to keep the power supply stable, secure, and available at all times.

The Growing Need for Energy Storage

India, as one of the fastest-growing solar markets in the world, is witnessing an unprecedented rise in solar power installations. However, without proper storage solutions, a significant portion of this energy potential remains underutilized.

By 2030, India aims to have 500 GW of non-fossil fuel energy capacity, but achieving this milestone requires large-scale energy storage integration.

Lithium-ion batteries are leading the way in solving solar energy gaps by storing excess power during sunny hours and releasing it when needed.

In addition to lithium-ion, researchers and industry leaders are also looking into alternative solutions such as hydrogen storage and advanced flow batteries to enhance long-duration energy storage capabilities.

Industry Leaders Weigh In

Key figures in India’s renewable energy sector are emphasizing the urgent need for energy storage adoption:

Rohit Tiwari, CEO of Insolation Energy, recently stated that “without large-scale storage deployment, India’s solar ambitions will face significant roadblocks.”

Similarly, Rajeev Suri, CEO of Oorja Energy, has called for greater investments in domestic battery manufacturing to reduce dependence on imports and improve energy resilience.

Beyond the private sector, government agencies are also taking note. The Ministry of New and Renewable Energy (MNRE) is actively working on policies to promote energy storage technologies alongside solar expansion. The focus is on building a robust energy storage infrastructure to support the country’s ambitious renewable energy goals.

Key Discussions at Industry Summits

The urgency of energy storage integration was a major theme at the India Energy Storage Alliance (IESA) Conference 2025, where top energy experts and policymakers called to discuss the future of solar and storage. Discussions revolved around:

1. Scaling Up Lithium-Ion Battery Production: India is pushing for increased domestic battery production to reduce reliance on imports and lower costs.
2. Hydrogen as a Storage Solution: Green hydrogen is gaining traction as a long-term energy storage alternative, offering the potential for industrial applications and grid balancing.
3. Grid Stability and Energy Security: Experts highlighted the role of battery storage in mitigating fluctuations in solar generation and ensuring grid reliability.
4. Policy and Investment Roadmaps: The government is considering new subsidies and incentives for energy storage projects to accelerate deployment.

One of the most significant takeaways from the conference was the announcement of a $3 billion investment in battery storage infrastructure, backed by both government and private sector players. This investment aims to support utility-scale energy storage projects, helping bridge the gap between solar production and consumption.

 The Future of Solar Energy

The future of solar energy is linked to the advancement of energy storage solutions. Without reliable storage, solar power remains an intermittent resource rather than a full-fledged alternative to conventional energy. The coming years will see increased innovation, policy support, and large-scale investments to ensure that solar energy is available 24/7, making it a truly sustainable power source for the future.

As India moves closer to its net-zero emissions target, the integration of advanced battery technologies, hydrogen storage, and intelligent grid solutions will play a defining role in shaping a clean energy landscape. The momentum is building, and energy storage is no longer an option, it is a necessity.

Know more about the future of solar here.