India's Solar Boom
India’s Solar Triumph
India’s solar energy sector has seen explosive growth. In 2024–25 India generated about 108,494 GWh of solar power – surpassing Japan’s 96,459 GWh – and rose to become the world’s third-largest solar electricity producer. By mid-2025, India’s cumulative solar capacity reached roughly 119 GW, making renewables over half of its total power base. This expansion was driven by falling technology costs and strong policy support. The government has set a 2030 goal of 500 GW of non-fossil power (roughly 250–300 GW from solar), reflecting India’s pledge under the Paris Agreement.
Policy Commitments and Targets
India’s climate plans hinge on continuing this momentum. The 2030 target implies adding about 30 GW of solar per year, but in recent years additions have been closer to 15–25 GW annually. To bridge this gap, the government has launched major programs. The Pradhan Mantri Surya Ghar scheme (free rooftop panels for 10 million homes) and PM-KUSUM (solar-powered farm pumps) are intended to spur domestic demand. A Production-Linked Incentive (PLI) scheme and stricter standards now favor Indian-made panels. For example, new solar tenders mandate use of “Make in India” modules, and basic customs duties on imports (from 2022) make foreign panels pricier. These moves boost local industry and help meet the 50% renewables by 2030 goal. Still, analysts note that India must sharply ramp up capacity to hit its targets – adding roughly 30 GW a year – which will require faster project approvals and investment in grid integration and storage.
Manufacturing Boom and Cost Challenges
India’s solar manufacturing has expanded dramatically, but so has its scale-up challenge. In FY 2024–25 alone, manufacturing capacity nearly doubled – jumping from about 38 GW to 74 GW. Recent reports even put India’s approved module capacity at around 100 GW. Major companies are building new factories under the PLI scheme. However, these factories face higher costs: Indian-made solar cells and panels are 1.5–2 times more expensive than Chinese equivalents. In other words, a “Made in India” module can cost well over double an imported Chinese one. This cost gap – due to smaller scale, pricier inputs, and weaker supply chains – threatens competitiveness. As one analyst observed, India’s industry is now “at a crossroads” where “the challenge has shifted from building capacity to achieving cost-competitiveness and diversifying export markets”. In short, India must improve manufacturing efficiency (through R&D, automation and scale) if its solar plants are to produce power cheaply.
Domestic Hurdles
Even at home, growth has had bumps. Rooftop and rural programs have underperformed in some places. For example, barely 21% of the first 10 million homes under Surya Ghar had solar installed after nearly two years. Gujarat and Kerala have made strong progress, but many states lag, and subsidy disbursement has been slow. On the grid side, integrating this much solar is also a challenge. The power ministry says India is now in a “consolidation phase”: instead of simply adding more gigawatts, the focus is on strengthening transmission lines, enforcing renewable purchase rules, and adding storage and backup power. In practice, this means building new high-capacity lines (a ₹2.4-lakh-crore plan for a 500 GW grid is underway) and auctioning more hybrid and battery-backed solar projects. These system reforms are critical; they will ensure that India’s fast-growing solar fleet is reliable and can serve demand even when the sun isn’t shining.
Global Opportunities: Tapping New Markets
To sustain the industry’s momentum, India is also looking beyond its borders. With domestic demand slower than supply growth, finding export markets is crucial. Under the International Solar Alliance (ISA) – a 120-nation coalition co-founded by India – New Delhi is pushing to export its solar solutions to developing countries. Officials say they will “showcase both the PM-KUSUM and the PM Surya Ghar programs… in Africa and island countries” through the ISA platform[. The aim is to address urgent needs abroad: for example, only about 4% of Africa’s farmland is irrigated today, despite the continent’s abundant sunlight. India’s solar pumps (PM-KUSUM) could irrigate millions of hectares, and rooftop kits (Surya Ghar) could power rural clinics and schools. Such projects would open huge new markets for Indian solar tech and bolster climate diplomacy. In effect, India is positioning itself as an alternative to China by building solar in Africa and Asia, turning its manufacturing surplus into development aid.
A Bright but Delicate Future
India’s solar journey is an impressive success story, but experts warn it cannot rest on laurels. A recent industry report notes India is “at a crossroads” – its destiny depends on cutting costs and finding customers. As one analyst put it, India has “the clearest potential to become the only credible, large-scale alternative to the Chinese solar supply chain”, but only if it drives down prices and wins over new buyers in Africa, Latin America and beyond. If India can solve its manufacturing bottlenecks and export puzzle, its solar boom can continue to accelerate – powering millions of homes at home and lighting up cities in the Global South. If not, surplus panels may sit idle and investment momentum could falter. In short, India’s golden hour for solar is still dawning. With smart policy and global outreach, the country can ensure its sunlit future is as bright as its promise.
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