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India's Solar Energy Growth: Policies, Challenges, and Future Outlook

The global energy sector is shifting rapidly toward solar power as a clean and cost-effective alternative to fossil fuels. Advancements in technology, reduced installation costs, and government incentives have made solar energy more accessible. India has set ambitious goals, targeting 280 GW of solar capacity by 2030, contributing to the broader 500 GW non-fossil fuel capacity target. In FY 2023-24, 13.3 GW of new solar capacity was added, with Rajasthan, Gujarat, and Karnataka leading the expansion.

Factors Driving Solar Growth

Government Policies

The Indian government has introduced various policies to promote solar energy, including subsidies, tax incentives, and grid connection schemes. The PM-KUSUM program has played a key role in decentralized solar adoption by supporting solar-powered irrigation pumps, reducing dependence on grid electricity.

Solar Parks

The Solar Park Scheme, launched nearly a decade ago, has accelerated large-scale solar project development by providing dedicated infrastructure. These parks simplify the process for investors and developers by offering shared facilities like roads, water supply, and communication networks.

Rooftop Solar: Challenges and Potential

Despite its potential, rooftop solar adoption in urban areas like Bengaluru has been slower than expected due to high installation costs and a complex approval process. However, technological advancements and policy improvements are expected to drive greater adoption. An RMI report (2025) highlights rooftop solar’s potential to reduce emissions, lower electricity bills, and decrease reliance on conventional grids. Overcoming challenges requires stronger policies, better financing options, and increased public awareness.

PM Surya Ghar: Muft Bijli Yojana’s Impact

Since its launch in January 2025, this initiative has significantly boosted rooftop solar installations. As of December 2024, India had 846,000 households with solar systems, adding 2.3 GW of rooftop capacity. Financial aid of ?43.09 billion has been distributed to 554,000 beneficiaries, with 45?hieving zero electricity bills. Gujarat leads with 351,273 installations, followed by Maharashtra and Uttar Pradesh. The scheme aims for 2 million installations by October 2025 and 10 million by March 2027.

Conclusion

India's solar expansion is driven by government policies, solar parks, and financial incentives. While regulatory barriers and installation costs pose challenges to rooftop solar adoption, its vast potential remains untapped. With continued policy support and technological advancements, solar power will play a crucial role in ensuring India's energy security and sustainability.