An Energy Revolution in the Making

Why in News?

The Union Minister for New and Renewable Energy highlighted India’s rapidly expanding renewable energy ecosystem ahead of the Bharat Renewable Energy Summit & Expo 2026 (November 2-5).

The government has outlined an ambitious roadmap to achieve 500 GW of installed non-fossil fuel-based electricity capacity by 2030. The transition is increasingly moving beyond large solar parks towards decentralised energy production, involving households, farmers, MSMEs and local communities.

India’s Renewable Energy Transition: Key Achievements

• Expansion of solar capacity: Installed solar capacity increased from 2.82 GW in 2014 to approximately 171 GW as of September 2026, representing an increase of over 6000%.
• Achievement of climate commitments: India achieved 50% of its installed electricity capacity from non-fossil sources in 2025, more than five years ahead of its 2030 NDC target. 
• Declining solar tariffs: Competitive bidding and technological improvements have significantly reduced solar tariffs. Rates have fallen from around ₹8/unit in 2014-15 to approximately ₹2.15/unit in some competitive auctions.
• Expansion of rooftop solar: Under the PM Surya Ghar: Muft Bijli Yojana, more than 21 lakh households have reportedly received zero electricity bills out of approximately 65 lakh homes with rooftop solar installations.
• Growth of the non-fossil energy ecosystem: As of September 2026, India’s total non-fossil installed capacity stood at approximately 308 GW, including renewable energy and nuclear power.

Key Government Initiatives driving the Transition

• PM Surya Ghar: Muft Bijli Yojana: Aims to install rooftop solar systems in one crore households, with central financial assistance and support for residential consumers. Promotes decentralised electricity generation, reduces household electricity expenditure and encourages consumer participation in the energy transition.
• PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan): Promotes solarisation of agricultural pumps, installation of decentralised solar power plants and feeder-level solarisation. Enables farmers to become Urjadatas (energy producers) alongside their traditional role as Annadatas (food producers).
• Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules: Encourages domestic manufacturing of high-efficiency solar modules and reduces import dependence. Supports the development of an integrated domestic solar manufacturing ecosystem.
• National Green Hydrogen Mission (2023): Aims to develop India as a global hub for green hydrogen production, utilisation and export. Targets at least 5 million metric tonnes of green hydrogen production annually by 2030, alongside domestic electrolyser manufacturing.
• Green Energy Corridor (GEC): Strengthens transmission infrastructure to evacuate renewable electricity from resource-rich regions to consumption centres. The approved Green Energy Corridor Phase III includes intra-state transmission infrastructure and 50 GWh of battery energy storage systems, with ₹50,000 crore earmarked for the storage component.

Next Phase of India’s Energy Revolution: Four Key Priorities

India’s next phase of energy transition requires moving from capacity addition towards an integrated, reliable and domestically resilient energy ecosystem.

(i) Mobilising Capital and Investment

• India requires approximately $220 billion in investment between 2027 and 2030 to achieve its 500 GW non-fossil capacity target, covering renewable generation, manufacturing, green hydrogen, storage and transmission infrastructure.
• The investment strategy must leverage domestic institutional investors, foreign direct investment (FDI), pension funds, sovereign wealth funds and green bonds.
• Rooftop solar installations and solar-powered agricultural infrastructure need to become financially viable and bankable investment assets to attract long-term institutional capital.
• Public-private partnerships (PPPs) and stable regulatory frameworks can reduce investment risks and improve project viability.

(ii) Strengthening Domestic Manufacturing

India needs to move beyond assembling solar modules towards developing an integrated manufacturing ecosystem covering solar cells, wafers and polysilicon.

• PLI Scheme: Has supported the expansion of domestic solar module manufacturing capacity.
• Manufacturing capacity: India’s cumulative solar module manufacturing capacity reached approximately 261.7 GW in June 2026, while cell manufacturing capacity stood at approximately 36.6 GW. However, capacity listed under the respective ALMM lists was lower, at around 225.5 GW for modules and 35.5 GW for cells.
• Green hydrogen ecosystem: The National Green Hydrogen Mission is supporting indigenous electrolyser manufacturing and reducing dependence on imported technology.

(iii) Developing Energy Storage and Grid Infrastructure

The growing share of intermittent renewable energy sources makes energy storage and grid flexibility essential.

• Battery Energy Storage Systems (BESS): India’s projected requirement by 2031-32 is approximately 236 GWh.
• Pumped Storage Projects (PSPs): Can store surplus electricity by pumping water to elevated reservoirs and generating electricity during periods of peak demand.
• Green Energy Corridor: Strengthening transmission infrastructure will facilitate the evacuation of renewable electricity from generation centres.
• Smart Grids: Digitalisation, artificial intelligence (AI), advanced forecasting and smart meters can improve demand management, grid balancing and renewable energy integration.

(iv) Creating Green Jobs and Building Human Capital

• Decentralised employment: Rooftop solar requires local technicians for surveying, installation, grid connection, maintenance and servicing, creating employment opportunities beyond major urban centres.
• Employment potential: A 2026 CEEW-NRDC study estimates that achieving India’s 500 GW non-fossil capacity target and National Green Hydrogen Mission objectives could generate over 44 lakh full-time-equivalent (FTE) jobs by 2030. Rooftop solar could account for around 43% of these jobs.
• Skill development: Training in solar installation, battery management, power electronics, grid operations and green hydrogen technologies is essential.
  

Role of India in Global Renewable Energy Cooperation;

• International Solar Alliance (ISA): Launched jointly by India and France at COP21 in Paris in 2015. Seeks to promote solar energy deployment, mobilise finance, facilitate technology transfer and build institutional capacity, particularly among solar-rich developing countries. Its initiatives include the Africa Solar Facility, capacity-building programmes and centres of excellence.
• G20 Presidency (2023): India’s G20 Presidency facilitated the African Union’s permanent membership in the G20. The New Delhi Leaders’ Declaration supported efforts to triple global renewable energy capacity by 2030, strengthening international cooperation on energy transition.
• BRICS Cooperation (2026): The September 2026 New Delhi Declaration welcomed the development of a BRICS Solar Photovoltaic Cooperation Roadmap. It also welcomed guiding principles on smart grids and energy storage, opening avenues for technology cooperation, financing and capacity-building among BRICS members.

These initiatives reinforce India’s ambition to emerge as a leader in affordable, inclusive and sustainable energy solutions for developing countries.

Challenges in India’s Renewable Energy Transition:

• Intermittency and Grid Stability: Solar and wind generation depend on weather conditions, creating challenges in matching electricity supply with demand. Insufficient storage and transmission capacity can lead to renewable energy curtailment.
• Import Dependence and Supply-Chain Vulnerabilities: India continues to depend on imports for critical components, including solar cells, wafers, polysilicon and battery-related minerals. Concentrated global supply chains create strategic vulnerabilities.
• Financial Constraints: High upfront capital costs, land acquisition difficulties, DISCOM financial stress and delayed payments can affect project viability and discourage private investment.
• Land and Environmental Concerns: Large renewable energy parks can create land-use conflicts, affect local livelihoods and threaten fragile ecosystems. Transmission infrastructure may also fragment habitats.
• Uneven Geographical Distribution: Renewable energy potential is concentrated in certain States, while demand centres are often located elsewhere. This necessitates stronger inter-state transmission infrastructure and Centre–State coordination.
• Recycling and Waste Management: Increasing deployment of solar panels and batteries will generate substantial end-of-life waste. Inadequate recycling infrastructure can create environmental and resource-recovery challenges.

Way Forward:

• Adopt an integrated energy planning approach: Synchronise renewable capacity addition with storage, transmission, distribution and demand-side management.
• Deepen domestic value chains: Promote R&D, technology transfer and manufacturing of solar cells, wafers, batteries, electrolyser components and critical minerals.
• Mobilise innovative finance: Expand green bonds, blended finance, infrastructure investment trusts (InvITs) and viability-gap funding to attract long-term private capital.
• Strengthen DISCOMs: Improve financial viability, payment discipline, tariff rationalisation and distribution infrastructure to ensure reliable renewable energy procurement.
• Promote decentralised renewable energy: Expand rooftop solar, solar pumps, microgrids and community-based energy systems, particularly in rural and remote areas.
• Establish a circular economy framework: Strengthen solar panel and battery recycling, extended producer responsibility and recovery of critical minerals.
• Deepen international cooperation: Leverage ISA, BRICS, G20 and multilateral development banks to mobilise affordable finance and transfer clean-energy technologies to the Global South.

The energy transition must move beyond merely adding renewable capacity towards building a reliable, affordable, decentralised and domestically resilient energy ecosystem. This will be central to achieving Viksit Bharat 2047 while ensuring that India’s development pathway remains sustainable and inclusive. 

Mains Practice Question:

Q. Discuss the role of decentralised renewable energy initiatives such as PM Surya Ghar and PM-KUSUM in strengthening India’s energy security and promoting inclusive development.

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