India’s solar energy revolution: A path to 500 GW by 2030 and beyond

Posted on 23 Mar 2025

India is spearheading a solar energy revolution, aiming for 500 GW of non-fossil fuel energy capacity by 2030. The country has rapidly expanded its solar sector, surpassing 100 GW in FY2025, driven by government initiatives like the PLI scheme, rooftop solar programmes and solar parks. Efforts to reduce dependence on Chinese imports and boost domestic manufacturing are underway, alongside innovations like perovskite cells and bifacial modules. Challenges such as land availability and solar waste persist, but rising investments and policy support promise a bright future. India’s solar journey sets a global example for sustainable energy and economic empowerment.

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In the race to combat climate change and secure a sustainable energy future, India has emerged as a global leader in solar energy. With ambitious targets and robust policy support, the country is on track to achieve 500 GW of non-fossil fuel-based energy capacity by 2030, with solar energy playing a pivotal role. This article delves into India’s solar energy journey, exploring the key drivers, challenges and future prospects of this transformative sector.

India’s solar energy milestones

India’s solar energy sector has witnessed exponential growth over the past decade. From a modest 3.99 GW of installed capacity in FY2015, the country has crossed the 100 GW milestone in FY2025, solidifying its position as a global renewable energy leader. This remarkable achievement is a testament to the government’s unwavering commitment to clean energy and the private sector’s active participation.

The regional distribution of solar capacity, however, reveals significant disparities. Seven states—Rajasthan, Gujarat, Karnataka, Tamil Nadu, Maharashtra, Telangana and Andhra Pradesh—account for nearly 82% of the cumulative installed capacity. While northern and southern India have nearly equal shares, the southern states have been more proactive in solar implementation, with Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh leading the charge.

Government initiatives driving solar growth

The Indian government has implemented a series of initiatives to accelerate solar energy adoption. The Production Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing of high-efficiency solar PV modules, has been a game-changer. With an initial allocation of INR 45 billion (USD 523.2 billion) and an additional INR 195 billion (USD 2,27 billion) in tranche II, the scheme has attracted investments of approximately INR 350 billion (USD 4 billion), significantly enhancing India’s solar manufacturing capabilities.

Another notable initiative is the PM Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar plants in 10 million households. With a total financial outlay of INR 750 billion (USD 8.72 billion), the scheme is expected to add 30 GW of residential rooftop solar capacity by FY2027. The government has also increased the budget for this scheme by 80% to INR 200 billion (USD 2.33 billion) for FY2026, reflecting its commitment to widespread solar adoption.

The Solar Parks Scheme, launched in 2014, has been instrumental in addressing land availability and transmission challenges. By March 2024, 58 solar parks with a total capacity of 40 GW had been approved in 13 states. Gujarat, Rajasthan, and Andhra Pradesh are the top contributors, accounting for 93% of the total sanctioned capacity.

Reducing dependency on Chinese imports

China has long dominated the global solar supply chain, controlling 80% of solar cell production and 70-80% of solar module production. However, India has made significant strides in reducing its reliance on Chinese imports. Between FY2022 and FY2024, imports of solar modules from China decreased from over 90% to 56%, while imports of PV cells dropped to 65%.

This shift is largely attributed to the Approved List of Models and Manufacturers (ALMM), which mandates the use of domestically produced solar panels for government projects. The introduction of ALMM List-II for solar cells, effective from June 2026, is expected to further strengthen India’s solar PV supply chain and reduce import dependency.

Despite these advancements, India still relies heavily on imported raw materials such as polysilicon and wafers. Domestic manufacturing operates at just 40-45% of its total capacity, producing only about 7 GW—meeting just 35% of the nation’s growing solar energy demand. Companies like Adani and Waaree are working to build a fully integrated solar value chain domestically, aiming to strengthen the local ecosystem and reduce import dependency.

Export potential and global market dynamics

India’s solar module exports have surged, recording a 23-fold increase between FY2022 and FY2024. The US accounts for over 90% of India’s PV cell and module exports, driven by the Inflation Reduction Act (IRA) and the Uyghur Forced Labor Prevention Act (UFLPA), which have adversely impacted Chinese solar manufacturers.

Indian manufacturers like Waaree Energies, Adani Solar, and Vikram Solar are capitalising on this opportunity, exporting TOPCon solar modules to the US at around USD 0.30 per watt-peak (Wp), significantly higher than the domestic price of USD 0.17-0.19 per Wp. However, the ongoing US-China trade war and potential reciprocal tariffs on Indian goods pose challenges for India’s solar exports.

Challenges and the road ahead

While India’s solar energy sector has made remarkable progress, several challenges remain. Land availability is a critical issue, as solar PV plants require large, contiguous plots of land that are difficult to secure due to land ownership issues, local politics and varying terrains. Additionally, as the solar industry grows, waste management is becoming a pressing concern. Solar modules typically have a lifespan of around 25 years, and their disposal contributes to the growing solar waste in the country. India currently lacks a dedicated solar waste disposal policy, highlighting the need for guidelines similar to those for e-waste.

Another significant challenge is the lack of an integrated domestic production chain. The industry primarily assembles solar modules using imported components such as polysilicon and wafers, resulting in a local value addition of only 30-40%. The absence of self-sufficient production for essential raw materials deepens India’s reliance on imports. The ALMM mandate for solar cells, effective from June 2026, presents difficulties for companies without in-house production capabilities. Non-compliance could lead to module supply disruptions, affecting market share.

Innovative technologies driving the solar segment

The solar energy sector is witnessing rapid technological advancements that promise to enhance efficiency and reduce costs.

Perovskite solar cells, known for their high efficiency and low manufacturing costs, are gaining traction. In February 2025, China-based JinkoSolar announced that its N-type TOPCon-based perovskite tandem solar cell achieved a conversion efficiency of 33.84%, surpassing its previous record of 33.24%.

Bifacial modules, which capture sunlight from both sides, are another innovation driving the solar segment. These modules are particularly useful in environments with reflective surfaces, such as snow or water and have been widely adopted in countries like Indonesia, Greece and Saudi Arabia.

Space-based solar power (SBSP) is a groundbreaking concept that involves capturing solar energy in orbit and transmitting it to Earth. While SBSP promises clean energy and enhanced energy security, it faces challenges such as high costs, transmission efficiency and space debris risks. Projects like the European Space Agency’s SOLARIS initiative and startups such as Space Solar and Aetherflux are working towards developing SBSP technologies.

Empowering women through solar energy

The renewable energy sector not only creates livelihood opportunities but also empowers women by increasing their participation in the workforce. The Solar Urja Lamps project in Dungarpur, Rajasthan, is a prime example. Women from Self-help Groups (SHGs) were trained as solar entrepreneurs, leading to the employment of 83 women, the establishment of five solar shops and the assembly, sale and maintenance of 40,000 solar lamps. This initiative allowed tribal women to earn INR 5,000–6,000 per month, promoting both economic independence and gender equality.

Another example is the Global Energy Alliance for People and Planet (GEAPP), which works closely with the DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) to create programs that provide reliable clean energy access and enhance livelihoods for women-led enterprises. GEAPP India, in collaboration with Uttar Pradesh’s rural livelihood mission, has launched a programme to solarise 50,000 women enterprises by 2025, with plans to expand this initiative to 100,000 women enterprises by 2027 and 500,000 by 2030.

The future of solar energy in India

India’s outlook for solar power is exceptionally promising, driven by robust government policies, rising private sector investments, and growing consumer awareness. The country is firmly on track to achieve its ambitious goal of 500 GW of non-fossil fuel energy capacity by 2030, with solar energy expected to contribute a major share.

Leading project developers like ReNew, Avaada, Adani Green, ACME and AMP Energy have expanded into solar module manufacturing, announcing plans for significant capacity additions. This increase in domestic solar module manufacturing is expected to address several challenges, including reducing reliance on imports, stabilising module prices and easing supply chain issues. As India strengthens its manufacturing capabilities, the country could become an exporter of solar modules to regions with high demand and low import duties, tapping into substantial growth opportunities.

However, Indian manufacturers must overcome challenges such as stiff competition from China and high import duties in certain countries. Despite these obstacles, India’s solar industry stands to gain from the rising global anti-China sentiment, which may drive higher demand for Indian-made solar modules.

Leading the global shift to clean energy

India’s solar energy revolution is a beacon of hope in the global fight against climate change. With ambitious targets, robust policy support, and innovative technologies, the country is well-positioned to achieve its goal of 500 GW of non-fossil fuel energy capacity by 2030. While challenges remain, the government’s commitment to clean energy and the private sector’s active participation promise a bright future for India’s solar energy sector.

As the world transitions to renewable energy, India’s journey offers valuable lessons and inspiration. By harnessing the power of the sun, the country is not only securing its energy future but also paving the way for a sustainable and prosperous world.

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