Recent Developments and Challenges in Solar Energy Utilization in India

Abstract

India\'s shift to renewable energy has sped up significantly over the last ten years. This has made the country one of the leaders in solar power development worldwide. By early 2025, India\'s installed solar capacity surpassed 75.4 GW, playing a key role in the country\'s renewable energy mix. This paper offers an analysis of recent technological, economic, and institutional changes in India\'s solar energy sector. It also examines challenges to large-scale deployment and suggests policy and technical measures to support sustainable growth. Using data from MNRE, IEA, IRENA, and peer-reviewed studies, this research combines trends in capacity growth, regional potential, cost changes, environmental effects, and grid integration challenges. It ends with recommendations to boost domestic manufacturing, improve storage solutions, and strengthen institutional capacity to achieve India\'s solar targets for 2030.

Introduction

India’s rising energy demand, driven by economic growth and urbanization, has led to increased reliance on fossil fuels—causing environmental and health problems. To counter this, India prioritized solar energy, launching key initiatives like the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010, and later, schemes such as KUSUM and PLI for solar manufacturing. These efforts, along with strong solar insolation and land availability, have accelerated solar adoption.

Key Developments

• Installed capacity rose from 0.2 GW in 2010 to 75.4 GW in 2025.

• Policy tools, auctions, and falling technology costs drove rapid growth—especially after 2015.

• Large-scale parks (e.g., Bhadla, Pavagada) and distributed systems (e.g., rooftop solar, agricultural pumps) expanded access.

• Western and southern states led deployment; eastern and northern states lag due to weak infrastructure and policy gaps.

• Rooftop solar remains underused due to financing and regulatory hurdles.

Challenges

• Grid integration and intermittency problems require more storage (BESS, pumped hydro, etc.).

• Heavy dependence on imports for solar components.

• Financially weak DISCOMs hinder investments.

• End-of-life solar panel waste lacks clear recycling systems.

• Land-use conflicts and lack of skilled labor affect project deployment.

Policy Recommendations

• Promote battery storage and hybrid solar-wind systems.

• Strengthen domestic manufacturing with incentives and R&D support.

• Reform DISCOMs to reduce project risk.

• Expand rooftop, floating, and agri-voltaic (APV) installations to reduce land pressure.

• Develop solar recycling infrastructure and implement EPR (Extended Producer Responsibility).

• Use blended finance models (public + private investment) to reduce capital costs.

• Invest in next-gen PV technologies (e.g., perovskites, tandem cells).

Projections & Impact

• Levelized Cost of Electricity (LCOE) fell from Rs.18/kWh in 2010 to Rs.2.3/kWh in 2025.

• CO? emissions reductions have steadily increased with solar generation.

• India is projected to reach 180–240 GW solar capacity by 2030; up to 280 GW possible under ambitious scenarios.

• Solar growth creates significant job opportunities across manufacturing, installation, and O&M.

Conclusion

India\'s solar sector has seen significant growth due to lower costs, supportive policies, and maturing markets. The mix of utility-scale projects and distributed generation provides a varied path to energy access and reducing carbon emissions. However, to turn technical potential into ongoing progress, integrated strategies are needed. This includes updating the grid, adding storage, revising manufacturing policy, enacting financial reforms, and ensuring social protections. If policymakers act decisively on the outlined recommendations, India can not only meet but might also exceed its solar targets by 2030, creating environmental, economic, and social benefits.

References

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Copyright

Copyright © 2025 Mr. Prem Kumar , Dr. Rajesh Kumar Verma. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.