Role of solar energy in rural electrification in India

Across India’s vast landscape, the path towards equitable development is marked by ongoing challenges, especially in rural areas. Access to electricity, a fundamental pillar of modern life, remains a distant dream for millions of people living in remote villages. However, amidst these challenges, the advent of solar energy offers a promising avenue for rural electrification, offering a sustainable solution to bridge the gap between urban and rural regions. In this article, we delve into the multi-faceted role of solar energy in illuminating India’s future, exploring its transformative impact, challenges, and opportunities for widespread adoption.

India enjoys an average of 300 days of sunshine a year and receives plenty of solar energy, totaling as much as 5,000 trillion kilowatt-hours annually. This solar award paints a promising picture for the future of solar energy in the country. For those entering the renewable energy sector, the solar energy business represents a lucrative opportunity. What is even more encouraging is that key players are coming together to turn this potential into a remarkable success story for a self-reliant India. In line with this vision, the Government of India has committed a significant sum of USD 223 billion towards renewable energy initiatives. The goal is ambitious but achievable: by 2030, half of the country’s energy demand will be met from non-fossil sources.

The ambitious targets set by the Government of India under the National Electricity Plan 2024 (NEP14) aim to drastically reduce dependence on coal from over 70% of total generation to 50% by 2032, with the gap filled by renewable energy, especially solar . The share of solar power in the electricity mix is ​​expected to increase from 5% in FY2022 to 25% in FY2032, in line with the target of achieving 364.6 GW of solar capacity by FY2031-32. This rapid increase in solar production marks a shift towards an “accelerating growth” phase, underpinned by a significant increase in solar capacity of 12.9 GW in FY2023 alone.

Government Initiatives – The Government of India has launched several flagship programs to accelerate rural electrification through solar energy. Further supporting this growth are comprehensive government policies and initiatives, particularly the Production Linked Incentive (PLI) program for solar modules, which aims to produce high-efficiency photovoltaic modules at the gigawatt scale. This program, along with the Solar Park Scheme and initiatives like PM-KUSUM, is not just about increasing solar capacity, but also supporting domestic manufacturing, creating over 1 lakh jobs and increasing the availability and affordability of solar power. In addition, the government offers subsidies and incentives to promote the installation of solar panels and other renewable energy systems in households and rural communities. India’s favorable policy environment is also a significant factor in attracting foreign investment, with 100% FDI allowed under the automatic route for renewable energy projects. As of December 2023, India has achieved a remarkable installed solar capacity of 73.31 GW, which is part of a broader renewable energy capacity of 180.79 GW. The country’s comprehensive renewable energy targets for 2030 include achieving 500 GW of installed renewable energy capacity, contributing to reducing carbon intensity and working towards net zero emissions by 2070.

Impact on rural electrification – The impact of solar energy on rural electrification is profound and goes beyond simple access to electricity and catalyzes holistic socio-economic development. Remote villages, once shrouded in darkness, now bask in the glow of clean and sustainable energy, empowering communities and unlocking new opportunities. With a reliable electricity supply, small businesses can thrive, students can study after the sun goes down, and healthcare facilities can operate efficiently, thereby improving the overall quality of life in rural areas.

Decentralized Energy Solutions – One of the key benefits of solar energy lies in its ability to facilitate decentralized energy solutions, thereby reducing reliance on centralized grid infrastructure. In rural areas where grid connectivity is limited or unreliable, decentralized solar energy systems such as microgrids and off-grid solar installations play a key role in meeting local energy demand. These community-owned energy solutions not only increase access to energy, but also promote self-sufficiency and resilience, especially in the face of natural disasters or grid outages.

Environmental Sustainability – In addition to its socio-economic benefits, solar energy offers significant environmental benefits, constituting a cornerstone of sustainable development. Unlike conventional fossil fuel power generation, solar power generation is clean, renewable and does not emit greenhouse gases or air pollutants. By switching to solar energy, India can reduce its carbon footprint, combat climate change and contribute to global efforts for a greener and more sustainable future.

Challenges and solutions – Despite significant subsidies and incentives, the upfront costs and infrastructure requirements for a solar PV installation remain significant challenges. Integrating solar energy into the national grid creates technical challenges requiring improved grid infrastructure and storage solutions. Expanding the subsidy program and offering more flexible financing options could reduce barriers to solar energy use. Significant investments in network infrastructure and innovative storage solutions could alleviate network integration challenges. Streamlining the policy and regulatory framework across states could facilitate smoother implementation of solar projects, encouraging more uniform implementation across India.

Future Prospects – As India charts a course towards sustainable development, solar energy will play an increasingly important role in rural electrification efforts. With technological advances, falling costs and growing public awareness, the prospects for widespread use of solar energy are brighter than ever. Moreover, initiatives such as the International Solar Alliance (ISA) provide a platform for global cooperation and knowledge exchange in the field of solar energy, further strengthening India’s efforts to harness solar energy for rural electrification. India’s solar energy journey is a story of innovative approach, community engagement and sustainable growth. Thanks to strategic interventions and the involvement of various stakeholders, the country has witnessed remarkable progress in the use of solar energy. Rural areas in India have experienced transformation thanks to DRE. The Soura program in Kerala has demonstrated the impact of well-organized initiatives. The second phase of the program added 127.5 MW to rooftop solar installations in Kerala, demonstrating the potential of targeted state interventions and the effectiveness of demand aggregation by the Kerala State Electricity Board (KSEB).

Engaging communities and building their capacity is crucial. Kerala’s success story highlights the importance of educating consumers about the benefits and operational aspects of solar PV installations. Additionally, ensuring community involvement through incentives, such as offering a percentage of solar energy generated for free, can increase participation. The use of solar energy is significantly supported by financial support mechanisms. Providing subsidies, subsidies and easy access to loans are effective strategies to overcome initial investment barriers. The National Rooftop Solar Program by 2024 and increased Central Financial Assistance (CFA) subsidy demonstrate the government’s commitment to ensuring the availability and affordability of solar energy Solar energy holds enormous promise as a catalyst for rural electrification and sustainable development in India. By harnessing the abundant solar energy resources available, India can brighten the future of millions of rural people by unlocking economic opportunities, improving living standards and supporting environmental stewardship. Through continued commitment, innovation and collaboration, solar energy will continue to light the path to a brighter and more prosperous future for all.

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd, a leading manufacturer of solar modules