Editorial 1: ​​​​Tapping the shine

Context

India needs to emerge as a supplier of solar power to ensure the sustainability of its domestic industry.

Introduction

India’s solar power journey reflects one of the most significant shifts in its energy landscape. From being a coal-dominated economy, India has emerged as the world’s third-largest solar producer. With falling costs, policy support, and domestic manufacturing growth, solar energy now anchors India’s transition toward sustainable development and climate-resilient power generation.

India’s Solar Power Progress and Challenges

Growth of Domestic Solar Industry

• India has successfully developed a domestic solar power ecosystem.
• Around 2017, the cost of solar power fell below coal power, encouraging private investment in large solar projects.
  • As per the International Renewable Energy Agency (IREA, 2024-25), India produced 1,08,494 GWh of solar energy —
    ➤ 3rd largest producer globally after China and the U.S., surpassing Japan.
• Solar module manufacturing capacity rose from 2 GW (2014) → 100 GW (2025) (MNRE data).
• Effective production capacity, however, stands at ≈85 GW, despite higher installed capacity (≈117 GW as of Sept 2025).

Climate Commitments and Capacity Targets

• India aims to source 50% of its total power from non-fossil fuels by 2030 (~500 GW).
• Solar power target: 250–280 GW.
• To achieve this, India must add ~30 GW annually, but current addition is only 17–23 GW per year.

Production Cost and Global Competition

• Indian modules are 1.5–2 × costlier than Chinese modules.
  • Causes: smaller scale, costlier raw materials, weaker supply chains.
• Exports (2024):
  • India → U.S.: 4 GW (benefiting from U.S. import restrictions on China).
  • China → World: 236 GW.
• Implication: India’s upcoming large capacities may face market saturation unless it finds new buyers abroad.

Strategic Expansion and Africa Opportunity

• India seeks to become a “solar supplier” to Africa under the International Solar Alliance (ISA) framework.
• PM-KUSUM (rural solar pumps) and PM-Surya Ghar (urban rooftop solar) schemes are slow domestically but can be replicated in Africa,
  where only 4% of arable land is irrigated due to power scarcity.
• China remains the dominant solar supplier in Africa; India must position itself as a credible second option to ensure its industry’s sustainability.

Summary Table

Conclusion

India’s solar industry stands at a pivotal juncture — rich in potential yet constrained by costs and global competitiveness. To sustain momentum, India must enhance production efficiency, secure export markets, and expand solar diplomacy through the International Solar Alliance (ISA). Aligning innovation, affordability, and market diversification will ensure solar energy drives both national sustainability and global climate leadership.