Why in the News
India’s solar energy sector has achieved a historic milestone — generating 1,08,494 GWh in 2024–25, overtaking Japan and becoming the third-largest producer globally. This achievement mirrors India’s rapid growth in renewable capacity — solar module manufacturing expanded from 2 GW in 2014 to a projected 100 GW in 2025. However, beneath this success lies a dilemma: despite its potential, Indian-made solar modules are 1.5–2 times costlier than Chinese ones, and without robust export markets, the new manufacturing capacity may struggle. Hence, India’s push to emerge as a solar supplier to Africa under the International Solar Alliance represents not just climate diplomacy but a crucial economic strategy.
Introduction
India’s solar revolution is a remarkable blend of climate responsibility, industrial policy, and global ambition. The cost of solar power fell below coal in 2017 — a landmark that catalyzed private and public investment alike. Yet, with China’s dominance in module exports and India’s limited domestic absorption, the future of India’s solar manufacturing depends on securing new markets and deepening its international role as a sustainable energy leader.
India’s Solar Power Success Story
- Massive Growth: India’s solar generation reached 1,08,494 GWh in 2024–25, overtaking Japan (96,459 GWh).
- Manufacturing Leap: Module manufacturing capacity expanded from 2 GW (2014) to 100 GW (2025 projection), a fiftyfold jump.
- Installed Capacity: India’s current installed solar capacity stands at 117 GW (as of September 2025).
- Comparative Rise: India now ranks 3rd globally, behind only China and the US, according to the International Renewable Energy Agency (IREA).
What are India’s Solar Targets for 2030?
- Climate Commitments: India aims to source 50% of its power from non-fossil fuel sources by 2030.
- Solar Share: Around 250–280 GW of this will come from solar energy.
- Annual Addition Needed: India must add 30 GW/year until 2030, but has managed 17–23 GW/year in recent years.
- Challenge: This gap reflects issues in scaling production, costs, and grid integration.
Why is Indian Solar Manufacturing Still Costlier?
- Higher Costs: Indian modules are 1.5–2x costlier than Chinese ones.
- Reasons:
- China’s control over raw materials and solar supply chains.
- Superior production lines and economies of scale.
- India’s fragmented ecosystem and dependency on imported inputs.
- Export Comparison:
- India exported 4 GW of modules to the US in 2024 (a temporary gain due to US restrictions on China).
- China exported 236 GW the same year, a staggering 59x lead.
How Can India Sustain Its Solar Manufacturing Boom?
- Need for New Markets: Without external demand, India’s large new capacity may remain underutilized.
- Africa as Opportunity:
- Africa uses only 4% of its arable land for irrigation due to lack of rural power.
- India can leverage this gap with solar-powered pumpsets, modeled on its PM Kusum Scheme.
- Diplomatic Leverage: India can push its solar expertise through the International Solar Alliance (ISA), showcasing schemes like PM Surya Ghar (urban rooftop) and PM Kusum (rural solar).
- Strategic Goal: To become a credible second supplier after China in emerging markets like Africa.
Domestic Solar Initiatives as Models for Export
- PM Kusum Scheme: Promotes solar irrigation pumps for farmers, ideal for replication in Africa’s rural power-deficient regions.
- PM Surya Ghar Scheme: Encourages rooftop solar adoption in urban India, demonstrating scalable, decentralized power solutions.
- Outcome So Far: Adoption is moderate, but the models offer policy templates for developing nations.
Conclusion
India’s solar journey is a story of ambition and transition, from an energy importer to a renewable exporter. Yet, sustaining this momentum requires vision beyond borders. Becoming a solar supplier to Africa can ensure India’s manufacturing viability, strengthen climate diplomacy, and cement its place in the global green order. As the world tilts toward decarbonization, India’s light must not just illuminate its homes, but the developing world.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
