Why Solar energy is the future source of Power and Wealth in India?

India is rapidly becoming a global leader in renewable energy. The solar sector is playing a key role in this transformation. Supported by strong government policies and growing investor interest, India is now the second most attractive renewable energy market worldwide. The shift towards clean energy, especially after the Paris Agreement, is turning solar power into a major driver of sustainable growth and job creation. In this blog, we explore the current market, key investments, and government initiatives powering India’s solar energy journey.

The Current State of India’s Solar Energy Sector

Market Overview

As of December 2017, India had a total installed renewable energy capacity of 62.846 GW. This made up about 18.8% of the country’s total energy capacity, which stood at 333.5 GW. Solar energy contributed 17.05 GW, which is 27.13% of the renewable mix.

India is expected to hold 8% of the global solar capacity by the year 2035. This would make the country a key player in the global solar power industry.

A Growing Investment Hub

India’s solar sector is attracting significant private equity and foreign investments:

• Private Equity (PE) investments in wind and solar energy increased by 47% in 2017.
• The Adani Group ranked 12th among the top utility-scale solar power developers worldwide in January 2018.
• NLC India Ltd launched a 130 MW solar project in Tamil Nadu.
• ADB and PNB signed a loan agreement worth ₹650 crore. This will support solar rooftop projects in commercial and industrial buildings.
• Another ₹1100 crore loan from ADB to the Government of India will help fund the PGCIL. This will enable transfer of surplus solar energy across states.

Government Initiatives Driving Solar Growth

Key Policy Measures and Support

The Indian government has launched several initiatives to promote solar energy:

• The Maharashtra Government will set up a 500 MW solar park in Dhule district.
• The MNRE is offering custom and excise duty exemptions for rooftop solar installations. This will reduce costs and encourage wider adoption.
• The Union Cabinet approved the issue of ₹2360 crore in bonds by IREDA. These funds will support various renewable projects during FY 2017-18.

Vision for Solar-Powered Cities

Prime Minister Narendra Modi has proposed the development of cities powered entirely by solar energy. These model cities are part of India’s vision for a cleaner urban future.

Mr. Ashvini Kumar, Managing Director of SECI, also announced:

• Plans to tender 750 MW of new solar capacity.
• A rollout of 4 GW of wind energy projects within the same fiscal year.

Conclusion

India’s solar energy sector is growing rapidly, thanks to policy support and major investments. Solar power is becoming more than just a clean energy source. It is now a key driver of economic growth and wealth creation.

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With strong momentum and clear direction, the sun is set to become India’s brightest source of power and prosperity.