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Solar Energy in India

In 2014, India had about 3 GW of solar power installed. By June 2026, that figure had grown more than fifty-fold, to 162.15 GW. In 2025 alone, India added more solar capacity than the United States. That single fact made India the world’s second-largest solar growth market. Falling tariffs, aggressive auctions, and new manufacturing all helped drive this leap.

📑 Contents
🏛️ Must Know
India’s Solar Capacity Growth
  • India’s installed solar capacity reached 162.15 GW by 30 June 2026.
  • That is more than fifty times the roughly 3 GW installed in 2014.
  • The National Solar Mission, launched in 2010, laid the policy foundation for this growth.
  • Solar tariffs fell from about ₹18 per unit in 2010 to a record ₹2.44 per unit in 2017.
  • That record was set at the Bhadla Solar Park auction, run through SECI’s e-Reverse Auction mechanism.
  • Rajasthan, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, and Maharashtra lead in installed capacity.
  • Large-scale solar plants contribute 118.79 GW; rooftop solar contributes 27.88 GW.
  • India’s total non-fossil power capacity reached 283.46 GW, including 274.68 GW of renewables.
📘 Good to Know
India’s Five-Pillar Solar Policy
  • India’s solar policy rests on five pillars: vision, demand, cost, infrastructure, and manufacturing.
  • The vision pillar draws from India’s Panchamrit goals at COP26: 500 GW of non-fossil capacity by 2030, and net-zero emissions by 2070.
  • The demand pillar includes Renewable Purchase Obligations, PM Surya Ghar, and PM-KUSUM.
  • The cost pillar runs on SECI’s e-Reverse Auction, which drives tariffs down through competitive bidding.
  • The infrastructure pillar centres on the Solar Parks Scheme, first set at 20 GW and expanded to 40 GW in 2017.
  • By February 2026, 54 solar parks had sanctioned 39,188 MW of capacity.
  • Rajasthan leads with 11 parks and 10,726 MW; Gujarat follows with 7 parks and 12,150 MW.
  • Bhadla Solar Park in Rajasthan spans about 5,700 hectares and holds 2,245 MW of capacity, built between 2015 and 2020.
  • The Green Energy Corridor Programme had evacuated 24,567.8 MW by February 2026, with about 44 GW more planned.
  • The manufacturing pillar runs on the PLI Scheme for High-Efficiency Solar PV Modules, launched in 2021.
  • The scheme’s outlay grew from ₹4,500 crore to a total of ₹24,000 crore after a 2022 expansion.
  • It attracted about ₹35,000 crore in investment and created roughly 10,000 direct jobs by October 2024.
  • India co-founded the International Solar Alliance with France at the 2015 Paris climate summit, COP21.
  • ISA members include the Maldives, Greece, Germany, Italy, Bhutan, Luxembourg, and Argentina. Spain was welcomed into the ISA during President Pedro Sanchez’s October 2024 visit to India, part of the wider India-Spain relationship.
  • India proposed One Sun One World One Grid, called OSOWOG, in 2018.
  • It launched the Green Grids Initiative-OSOWOG with the UK at COP26 in 2021. Australia, France, the US, and the ISA backed the initiative.
  • Net metering is sometimes seen in the news in the context of promoting the production and use of solar energy by households and consumers directly, letting rooftop solar owners feed surplus power back to the grid for credit.
📝 Previous Year Questions
UPSC CSP 2016 — What Net Metering Actually Promotes
  • UPSC 2016 Net metering is talked about in the context of promoting the production and use of solar energy by households and consumers, letting them sell surplus power back to the grid. See UPSC CSP 2016 GS Paper I, Q36. View this question.
UPSC CSP 2018 — What’s Actually True About Solar Power Production
  • UPSC 2018 India is not among the top manufacturers of silicon wafers for photovoltaic units, and solar tariffs are set through competitive bidding, not directly determined by the Solar Energy Corporation of India. See UPSC CSP 2018 GS Paper I, Q67. View this question.

Test Yourself

1. India’s installed solar capacity reached what level by 30 June 2026?
2. With reference to solar power production in India, consider the following statements: 1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. 2. The solar power tariffs are determined by the Solar Energy Corporation of India.

 

🌟 Great to Know
The Story Behind the Headline Numbers
  • The tariff crash was not an accident.
  • Competitive e-Reverse Auctions forced developers to bid down prices, and panel costs kept falling too.
  • A second story sits inside the headline numbers: generation is shifting from giant plants to millions of small rooftops and farms.
  • In FY2025-26, distributed solar supplied 16.3 GW of that year’s total solar additions.
  • That is rooftop solar plus PM-KUSUM farm pumps combined, about 36% of the year’s growth.
  • PM-SSY, approved in July 2026, tries to solve solar’s oldest limitation: it stops generating after sunset.
  • By pairing floating solar panels with at least two hours of battery storage, the scheme aims to keep power flowing into the evening.
  • Floating panels also avoid using scarce farmland, sitting instead on reservoirs, dams, and industrial ponds.
  • Manufacturing has followed the same curve as generation.
  • Solar module imports fell from about $4,354 million in FY2023-24 to about $994 million in FY2025-26.
  • For one rooftop solar user in Gwalior, Sudhanshu Dubey, these national numbers meant something simple: his monthly bill fell from over ₹10,000 to nearly zero.
  • Solar is one piece of a wider clean-energy push. See IndEco0119 — Electric Vehicles in India and IndEco0118 — GOBARdhan for the transport and biofuel sides of the same transition.
📰 Current Affairs
Latest Solar Policy Developments
  • 31 July 2026: The Cabinet approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY). It funds 5,000 MW of floating solar with battery storage, at a cost of ₹5,070 crore. (Source: PIB)
  • PM-SSY’s approval also set out its rollout timeline. Projects will be sanctioned from FY 2026-27 to FY 2030-31, with disbursements continuing to FY 2032-33. (Source: PIB)
  • Funding covers ₹1 crore per MW after commissioning, plus up to ₹50 lakh per project for feasibility studies like bathymetry and hydrography. Each project needs at least 2 hours of storage, or 10,000 MWh. (Source: PIB)
  • On 28 July 2026, the government detailed how PM-KUSUM and PM Surya Ghar link up with other schemes. (Source: PIB)
  • PM-KUSUM converges with the Agriculture Infrastructure Fund, RDSS feeder-solarisation, and pump-replacement schemes. (Source: PIB)
  • PM Surya Ghar converges with MoHUA’s Solar Didi Programme, training women self-help-group members. District Mineral Foundation funds also support BPL and PMAY households under the scheme. (Source: PIB)
  • On financing, PM Surya Ghar offers collateral-free bank loans, at repo rate plus 50 basis points — 5.75% a year currently, over a 10-year term. RESCO and Utility-Led Aggregation models are also included. (Source: PIB)
  • Yearly budget-versus-spend also shows a scheme running hot. FY 2024-25 budgeted ₹6,250 crore, but spent ₹7,822.92 crore. (Source: PIB)
  • FY 2025-26 spent ₹16,166.23 crore, of a ₹20,000 crore budget. (Source: PIB)
  • 18 July 2026: MNRE extended a limited ALMM List-II exemption for Net-metering and Open Access solar projects. The exemption window moved from 31 May 2026 to 31 December 2026. The core ALMM policy itself remains unchanged. This protects standalone solar-module manufacturers’ existing inventory investments, MNRE said. (Source: PIB)
  • 30 June 2026: India’s cumulative solar capacity reached 162.15 GW, and total non-fossil capacity reached 283.46 GW. (Source: PIB)
  • 31 March 2026: India’s solar module manufacturing capacity reached about 172 GW, up from 2.3 GW in 2014. (Source: PIB)
  • FY2025-26: India added 44.61 GW of solar capacity, nearly double FY2024-25’s 23.83 GW. (Source: PIB)
  • Calendar year 2025: India added 37 GW of solar capacity, surpassing the United States for the first time. (Source: PIB)
  • 29 July 2025: Renewables met 51.5% of India’s electricity demand, the highest monthly share on record. (Source: PIB)
  • On 4 August 2026, PM Surya Ghar: Muft Bijli Yojana crossed 50.06 lakh rooftop solar installations. That is up sharply from just 7.94 lakh, over the scheme’s first ten years combined. (Source: PIB)
  • The scheme now adds 1 lakh households every six days. Daily installations rose 3.2 times in nine months, from 5,038 a day in October 2025, to 16,328 a day in July 2026. July 2026 alone added 5.06 lakh households, the highest month yet. (Source: PIB)
  • ₹28,024 crore in subsidy has reached beneficiaries directly. Nearly 19 lakh households now pay zero electricity bills. Over 12 lakh households earned ₹421 crore, by selling surplus power back to the grid. (Source: PIB)
  • The scheme has commissioned 14.8 GW of rooftop capacity so far, through 34,219 registered vendors. Separately, 1.06 lakh government buildings have also been solarized nationwide. (Source: PIB)
  • On 2 August 2026, a PIB Backgrounder detailed the new Pradhan Mantri Surya Sarovar Yojana (PM-SSY), for floating solar. NISE estimates a 102.18 GWp floating-solar potential nationally, versus about 700 MW installed today. (Source: PIB)
  • PM-SSY is expected to cut about 10 million tonnes of CO2 yearly, and create 16,000-17,000 jobs. Its energy-storage component will help states manage peak power demand. (Source: PIB)
  • The backgrounder also detailed India’s solar-park network. As of February 2026, 54 solar parks were sanctioned nationally, for 39,188 MW combined. Rajasthan alone hosts 11 parks, for 10,726 MW. (Source: PIB)
  • Competitive bidding drove solar tariffs down, from about ₹18 per unit in 2010, to a record ₹2.44 per unit, at Bhadla’s 2017 auction. India’s 2025 solar LCOE, at $35 per MWh, now beats the $44 global average. (Source: PIB)
  • On the farm side, PM-KUSUM has installed nearly 11.49 lakh off-grid solar pumps. It has also solarised 15.89 lakh grid-connected pumps, benefiting over 21.77 lakh farmers overall. (Source: PIB)
  • In FY 2025-26, distributed solar (rooftop plus PM-KUSUM) supplied 16.3 GW. That is 36% of that year’s total 44.61 GW solar addition, split roughly 8.7 GW rooftop and 7.6 GW PM-KUSUM. (Source: PIB)
  • Internationally, India co-founded the International Solar Alliance (ISA) with France, at COP21 in 2015. It later proposed One Sun One World One Grid (OSOWOG), launching the Green Grids Initiative with the UK at COP26. (Source: PIB)

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