India's Solar Growth Enters a New Era

Key Highlights:

• The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) has been approved to develop 5,000 MW of floating solar capacity with co-located energy storage.
• PM-SSY has an outlay of ₹5,070 crore and will be implemented from FY 2026–27 to FY 2030–31.
• India's solar installed capacity grew over fiftyfold from approximately 3 GW in 2014 to 162.15 GW by June 2026.
• India emerged as the world's second-largest solar growth market in 2025, surpassing the United States in annual additions.
• Key schemes like PM Surya Ghar: Muft Bijli Yojana and PM-KUSUM are significantly expanding distributed solar adoption.
• India co-founded the International Solar Alliance (ISA) and proposed the One Sun One World One Grid (OSOWOG) initiative.

Detailed Insights:

• PM-SSY aims to utilize existing reservoirs and industrial ponds, reducing pressure on scarce land resources and improving grid reliability.
• The scheme is projected to reduce around 10 million tonnes of CO₂ emissions annually and create 16,000–17,000 full-time equivalent jobs.
• India's solar expansion is driven by a robust policy framework, infrastructure development, manufacturing growth, and public participation.
• Major policy initiatives include the National Solar Mission, Solar Parks Scheme, Green Energy Corridor Programme, and competitive bidding.
• India's Panchamrit goals announced at COP26 include achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070.
• Renewable Purchase Obligations (RPOs) mandate electricity distribution companies to procure a specified share of their electricity from renewable sources.
• Competitive bidding through the e-Reverse Auction mechanism, facilitated by Solar Energy Corporation of India (SECI), reduced solar tariffs to a record-low of ₹2.44 per unit.
• The Solar Parks Scheme has approved 54 solar parks with a combined sanctioned capacity of 39,188 MW across the country.
• The Green Energy Corridor (GEC) Programme strengthens transmission networks to evacuate renewable energy from rich areas to demand centers.
• Domestic manufacturing is supported by the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules and the Approved List of Models and Manufacturers (ALMM).
• PM Surya Ghar: Muft Bijli Yojana, with an outlay of ₹75,021 crore, is the world's largest domestic rooftop solar program, solarizing over 43 lakh households by June 2026.
• PM-KUSUM supports the installation of solar pumps and feeder solarization in agriculture, benefiting over 21.77 lakh farmers.
• Distributed solar solutions contributed 16.3 GW, or 36%, of the 44.61 GW solar capacity added in FY 2025–26.
• During its G20 Presidency, India helped build consensus on tripling global renewable energy capacity by 2030.

Key Concepts Involved:

• Pradhan Mantri Surya Sarovar Yojana (PM-SSY): A scheme to develop 5,000 MW of floating solar capacity with co-located energy storage systems.
• Floating Solar Photovoltaic (FSPV): Solar panels installed on water bodies, reducing land use and improving efficiency.
• Panchamrit goals: India's five climate commitments announced at COP26, including 500 GW non-fossil fuel capacity by 2030.
• Renewable Purchase Obligations (RPOs): Mandates for electricity distribution companies to source a minimum percentage of their power from renewable sources.
• Production Linked Incentive (PLI) Scheme: Government initiative to boost domestic manufacturing in key sectors, including high-efficiency solar PV modules.
• International Solar Alliance (ISA): An intergovernmental organization co-founded by India to promote solar energy deployment globally.
• One Sun One World One Grid (OSOWOG): India's vision for an interconnected global renewable energy grid to facilitate cross-border energy trade.
• PM Surya Ghar: Muft Bijli Yojana: A scheme providing subsidies and loans for residential rooftop solar installations.
• PM-KUSUM: A scheme promoting solar energy use in agriculture through solar pumps and feeder solarization.