Solar self-reliance is critical to the vision of ‘Viksit Bharat’. The sooner we collectively work towards it, the better positioned we will be in achieving energy security for India
Buoyed by a robust economic trajectory over the past decade, India is steadily progressing towards realising Prime Minister Narendra Modi’s vision of a ‘Viksit Bharat’ by 2047. In this transformative journey, attaining energy security emerges as the most pivotal and formidable challenge for the nation’s burgeoning economy. With India’s geographical expanse bathed in over 300 solar days annually, harnessing solar energy presents an auspicious avenue to achieve ‘Solar Aatmanirbharta’ (solar self-reliance), which will play a vital role in securing an energy-independent ‘Viksit Bharat’ and contribute towards resolving several of the country’s energy security challenges.
India’s Energy Security Challenges
Broadly, there are two overarching challenges that India must confront. The first stems from the ever-increasing energy demands of an aspirational population, the largest in the world. India’s energy demand doubled between 2000 and 2020, surging from 417 Mtoe to 937 Mtoe, and reaching 1.14 Gtoe in 2023. By 2050, India is projected to have the highest energy demand globally, with the anticipated energy supply touching a staggering 73 exajoules (EJ). The second challenge entails meeting this immense energy demand sustainably, amidst escalating fuel prices, global economic and geopolitical uncertainties, and the looming threat of climate change.
Undeterred by these challenges, India has emerged as an International Climate Leader, demonstrating a steadfast commitment and tangible actions towards sustainable growth and development. At COP26, India committed to a five-point climate action agenda (Panchamrit), which included reaching “500 GW non-fossil energy capacity by 2030” and fulfilling “50 per cent of the energy requirements through renewable energy by 2030”. Hence, tapping and utilising solar energy will be critical to addressing the country’s burgeoning energy needs.
The Growing Role of Solar Power
Over 43 per cent of India’s power generation emanates from renewable energy sources (RES). Solar contributes 16.1 per cent of the total power generated (over 67,000 MW), positioning India as the fourth-largest solar power generator globally. The government has supported the sector with a slew of initiatives ranging from PLI schemes for high-efficiency solar PV modules to the PM KUSUM program, and the recently launched PM Suryaghar rooftop solar programme. In May 2024, the government issued a substantial 13,124 MW worth of new renewable energy tenders, with tenders around solar expected to exceed 2,000 MW.
Currently, rooftop solar installations account for around 11.08 GW of the total installed solar capacity. The PM Suryaghar programme, which aims to target 10 million households, is expected to be a major stride towards tapping solar energy, with India presenting a potential of 637 GW of rooftop solar energy capacity across 25 crore households. While increasing solar installations is one part of the equation, concrete steps are needed to achieve solar aatmanirbharta and build an entire ecosystem that is resilient amidst disruptions.
Solar Aatmanirbharta is Vital for Long-Term Sustenance
India will achieve solar self-reliance or solar aatmanirbharta only when we take a holistic stock of factors and work towards building a comprehensive ecosystem. First and foremost, the challenges pertaining to grid integration are of paramount importance. Integration with the grid would require infrastructure upgrades, public will, and the resolution of various technical challenges.
Solar technologies need to be made widely accessible and popular among the masses. Currently, the lack of solar financing, high upfront installation costs, prolonged return on investment periods, and dependence on subsidies are some of the challenges faced by the segment. The overall cost of solar adoption and maintenance must be brought down.
One way of reducing costs is to create demand through incentives and policy directives. The second option is to decrease costs by increasing domestic production of solar products at home and reducing import dependency. According to industry reports, India recorded a staggering 148 per cent year-over-year surge in solar imports in the first quarter of 2024, importing over $2 billion worth of solar cells and modules in the process. About three-fourths of import dependency (73 per cent) was on a single country during the same period.
Hence, India not only needs to incentivize local industries for boosting the production of solar modules and cells but also needs to diversify its import sources and reduce dependency on a single nation. From an export perspective, 99.1 per cent of solar products in the first quarter of 2024 were exported to the United States. India needs to develop a diverse mix of better or equivalently paying markets in the West that will bring revenue to the nation. Critical to a self-reliant, sustainable Solar ecosystem would be building a robust Solar waste management system, as India is expected to manage over 187,000 tonnes of Solar PV waste by 2035. Delay in solar waste management and exposure to various weather conditions like rain can expose our environment to a mix of hazardous chemicals.
India is a land blessed with abundant sunshine, and as we leverage the immense potential of solar power, it is imperative that the foundation of solar technologies is established on solid footing by building an ecosystem that is self-reliant, environmentally conscious, viable for the masses, and sustainable for the long term. Solar aatmanirbharta is critical to the vision of ‘Viksit Bharat’; the sooner we collectively work towards it, the better positioned we will be in achieving energy security for India.
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Voice - Ratul Puri, Group Chairman, Hindustan Powerprojects