Solar projects in India: Opportunities and challenges

India stands at a transformative juncture in its energy journey, with solar power playing a pivotal role in shaping a sustainable and self-reliant future. As the world’s third-largest producer of renewable energy, India has made remarkable strides in the solar sector, crossing the milestone of 100 GW of installed capacity. This success is driven by progressive policies, falling technology costs, and strong public-private participation. Yet, the road ahead presents both significant opportunities and complex challenges, particularly in scaling up distributed solar solutions such as rooftop systems.

 

India’s solar sector is underpinned by ambitious national targets. The Union government aims to achieve 500 GW of non-fossil fuel capacity by 2030, with solar contributing a significant share. Over the past decade, policy consistency and financial incentives have helped the country add over 100 GW of solar capacity, positioning India as a global leader in clean energy adoption.

 

A key driver in the residential segment is the recently launched PM Surya Ghar Muft Bijli Yojana, which aims to make rooftop solar accessible to millions of Indian households. With a budget of over ₹75,000 crore, the scheme offers a 40 per cent subsidy—₹30,000/kW for the first 2 kW and ₹18,000/kW for the next 3 kW of capacity. The goal is to install 40 GW of rooftop solar across the country, allowing households to enjoy up to 300 units of free electricity every month while contributing to India’s green energy goals.

 

Residential rooftop solar holds immense promise. It empowers homeowners to take control of their energy consumption, reduce electricity bills, and shrink their carbon footprint. Over time, the investment pays off through savings, with average payback periods ranging from 5 to 7 years, depending on system size, location, and applicable subsidies.

 

However, adoption is not without hurdles. Many homeowners remain unaware of the benefits and available schemes. In some states, implementation bottlenecks—such as delays in DISCOM approvals, inconsistent net metering policies, and procedural inefficiencies—act as deterrents. Furthermore, upfront capital costs, though decreasing, remain a challenge in lower-income segments.

 

This is where technology and awareness must converge. Modern rooftop systems now include smart inverters, energy storage options, and modular panels that enhance both reliability and scalability. As costs fall and technology improves, the economics of rooftop solar are becoming increasingly attractive.

 

Karnataka stands out as a leader in renewable energy adoption, offering a supportive policy framework for both utility-scale and distributed solar. The state has introduced net metering for rooftop projects, exemptions from wheeling and transmission charges for select capacities, and encourages group captive models, where industries and commercial consumers can jointly invest in solar assets to meet their power needs. These measures have made the state one of the top performers in India’s solar journey.

 

India’s solar journey is a compelling story of innovation, scale, and policy leadership. With one of the highest solar irradiation levels in the world, a massive population base, and falling equipment costs, the fundamentals are strong. However, to truly democratise solar power—especially rooftop solar—policy clarity, streamlined implementation, and consumer education will be key.

 

With active participation from industry, consistent government backing, and growing consumer interest, rooftop solar has the potential to become a mainstream energy solution for millions of Indian homes and businesses.

 

Praveen Singhal is Vice President (Power), Baldota Group.

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