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Big funding of Rs 3.2 trillion needed to power India’s solar future

27 Aug 2024

India's solar energy sector is expected to experience a significant expansion, with the addition of solar projects alone expected to require an investment of approximately Rs 2 trillion over the next two years. SBI Capital Markets has emphasized the need to double the current pace of solar capacity additions in order to meet the nation's FY30 target of 293 GW. According to the report, an additional Rs 1.2 trillion will be required to establish a complete value chain, highlighting the challenges and opportunities in the solar energy landscape.

Solar energy has gained prominence due to climate-related imperatives and a surge in electricity consumption. In FY24, solar energy led the charge with a record-breaking addition of approximately 15 GW, encompassing nearly half of the 32 GW added to India's power capacity. Despite this growth, solar energy currently constitutes only 19% of the installed capacity and generates only 6% of the electricity. By FY30, these figures are expected to increase to 38% and 23%, respectively.

The report emphasizes the significance of novel sources, such as commercial and industrial (C&I) and rooftop solar, which are anticipated to add approximately 4 GW annually over the next few years. These segments, which currently account for approximately 30% of the solar capacity, are anticipated to experience significant expansion owing to governmental initiatives such as the PM Surya Ghar Muft Bijlee Yojana (PM-SGMBY), which ensures up to 300 units of power per month per household.

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