With rapid climate change and depleting fossil fuels the need to transition to renewable energy has never been more pressing. India has recognized this need and has taken measurable steps towards a solar future. Since the launch of the Jawaharlal Nehru National Solar Mission in 2010, India's commitment to solar energy has steadily grown. With its vast landmass and abundant sunshine, India is positioned to harness solar energy as a key component of its renewable energy portfolio. Looking at solar power’s potential to reduce carbon emissions and provide sustainable energy, the Indian government is working towards accelerating the adoption of solar with the help of a series of ambitious policies, subsidies, and incentives. This blog explores How Government Policies Are Accelerating Solar Adoption.
Subsidies -
One of the most impactful measures the government of India has implemented to promote solar energy adoption is providing capital subsidies for residential, institutional, and social sector rooftop solar installations. These subsidies reduce the cost significantly, making solar power accessible to everyone.
Rooftop Solar Subsidy: The Ministry of New and Renewable Energy continues to provide subsidies for rooftop solar installations. As of 2024, residential consumers can receive up to a 40% subsidy for systems up to 3 kW and 20% for systems ranging from 3 to 10 kW. This subsidy has significantly enhanced the affordability of rooftop solar for homeowners. These subsidies have not only accelerated solar adoption but also helped democratize access to renewable energy.
PM-Surya Ghar: The Indian Government also offers PM-Surya Ghar: Muft Bijli Yojana, a subsidy that covers up to 40% of the cost of installing solar panels in poor and middle-class households.
Schemes -
The Indian government has also launched several schemes to accelerate solar adoption. They are taking careful measures to offer financial incentives aiding solar adoption.
Production Linked Incentive (PLI) Scheme: This is a key initiative designed to boost domestic production of solar cells. The PLI scheme offers financial incentives to solar equipment manufacturers who increase production capacities and enhance efficiencies. This scheme aims to reduce India’s dependence on imported solar equipment by supporting local manufacturers.
Solar Park Scheme: This initiative is designed for the development of Solar Parks. Solar Parks are large chunks of land developed with common infrastructure facilities like transmission infrastructure, roads, water, drainage, communication network, etc. with all statutory clearances.
Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI) scheme: This scheme aims to provide financial aid to the beneficiaries who install a solar power plant on the rooftops within the country.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM): This scheme was launched by the Government of India to add a solar capacity of 30,800 MW in 2022. This scheme also offered a total central financial support of Rs.34,422 crore within which the service charges to the implementing agencies were included.
Tax -
The government of India has taken measurable steps to build a tax model that supports and facilitates solar adoption.
Reduced GST rates: To encourage solar adoption, the government has kept the Goods and Services Tax (GST) on solar panels and related components at a lower rate of 5%.
Policies -
The Indian government has initiated several policies to boost solar adoption. These policies are motivating people to get solar panels installed at their homes, businesses, offices, and other properties.
Net Metering Policies: This is a metering policy that allows solar power consumers to receive credits for the electricity they send to the grid. How this works is that when privately installed solar panels generate excess power, the owners can send that unused surplus power to the grid. They can demand this power whenever they need it back. The government also provides subsidy aid to homeowners for installing net metering solar systems for residential use.
State-Level Initiatives: Extending Solar Support for Regional Needs
Not just the central government but the state government of India is also pushing towards a more sustainable future by investing heavily in solar energy.
Gujarat (current production -10.13 GW): The MNRE launched a scheme in 2020, with the objective of solarisation of the Sun-temple town of Modhera in District – Mehsana, Gujarat, and fulfilling the domestic and agricultural electricity needs of all the households of Modhera with solar energy. The project was completed and inaugurated by the Hon’ble Prime Minister on 9th October 2022. Gujrat has set a target of raising its renewable energy capacity to 68,000 MW by 2030.
Rajasthan (current production -18.7 GW): As the state with the highest solar power generation potential, Rajasthan plans to install 30,000 MW of solar energy capacity by 2025. In September 2023, the Rajasthan State government unveiled the draft for ‘Rajasthan Energy Policy 2050’ which targets 90 GW of combined solar and wind capacity by 2030. Jodhpur’s Bhadla Solar Park is India’s biggest solar power plant with a total capacity of 2245 MW.
Karnataka (current production -9.05 GW): Karnataka is the third largest producer of solar energy in India. It houses the second biggest solar power plant in India, i.e., The Pavagada Solar Park. The government has lined up three major power plant projects in Bidar, Koppal, and Gadag districts focusing on solar adoption.
Conclusion
Solar has many challenges from high initial costs, to uncertainty in policy consistency, to the challenges of grid integration but India is constantly working towards making it work. The government of India has been consistent and measurable in its efforts to shape India’s solar industry and drive down the cost related to solar adoption. According to the MNRE, the National Institute of Solar Energy (NISE) has assessed the country’s solar potential of about 748 GW assuming 3% of the wasteland area to be covered by Solar PV modules. The deteriorating fossils of the world desperately call for a transformation towards solar energy. Facilitating solar adoption and solar equipment production has taken a central place in India’s National Action Plan on Climate Change. In conclusion, the Indian government is making constant efforts To empower change by providing policies and subsidies, that promote solar adoption. India is growing in its solar capacity steadily, at this rate we can sure hope for a cleaner and greener future.
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