Review on Solar Energy in India, Achievements (2021–2025), and Benefits of Solar Energy

Sahdev^1, *, Dr. Shweta Choubey², Gitanjali Patel³, Ishwari⁴, Digeshari Sahu⁴, Khulesh Sahu⁴, Janak Ram⁴, Tushar Sahu⁵, Parmanand⁶

¹Department of Basic Sciences and Humanities, Government Engineering College Raipur, Chhattisgarh, India

²Department of Basic Sciences and Humanities, Government Engineering College, Raipur, Chhattisgarh, India

³Department of Physics, Govt. D.B. Girls P.G. (Autonomous) College Raipur, (Aff. to Pt. Ravishankar Shukla University, Raipur, Chhattisgarh)

⁴Department of Chemistry, Aryabhatta Art’s & Science College, Kopra, (Aff. to Pt. Ravishankar Shukla University, Raipur, Chhattisgarh)

⁵Department of Physics, Govt. Rajiv Lochan College, Rajim (Aff. to Pt. Ravishankar Shukla University) Raipur, Chhattisgarh)

⁶Department of Mathematics, Govt. M.V.P.G. College Mahasamund (Affiliated by Pt. Ravishankar Shukla University, Raipur, Chhattisgarh)

Abstract

The period between 2021 and 2025 has been particularly transformative, with the country significantly expanding its installed solar capacity and adopting innovative policy frameworks. The Government of India, through the National Solar Mission and various state-level initiatives, has accelerated the adoption of solar power by incentivizing both centralized solar parks and decentralized rooftop solutions. From 41.2 GW in 2021, India’s total installed solar capacity rose impressively to over 105.6 GW by 2025, reflecting a strong commitment to renewable energy goals and climate action. Landmark programs like the PM-KUSUM scheme for farmers, rooftop solar subsidies, and the expansion of solar parks in states like Rajasthan, Gujarat, and Karnataka have played a key role. The establishment of domestic manufacturing incentives under the “Atmanirbhar Bharat” initiative further bolstered India's solar supply chain. This paper reviews the progress and policy direction in India’s solar energy sector during this period, highlights the major achievements in capacity building, and discusses the wide-ranging benefits of solar energy. These include environmental sustainability, economic resilience, job creation, energy security, and social empowerment, particularly in rural and remote areas. As India strides toward its 2030 targets of 500 GW non-fossil capacities, solar energy is poised to remain a cornerstone of the country’s sustainable development and green energy future.

Keywords: Solar energy in India, Achievements (2021–2025), Challenges, and Benefits of solar energy.

Introduction

Since ancient times, the Sun has been revered as a vital source of life on Earth. Today, humanity faces a pressing challenge—meeting its ever-growing energy needs sustainably (Sahdev et al., 2023). While the Industrial Age marked the beginning of harnessing sunlight for energy, modern advancements have unlocked the vast potential of solar power, especially in countries like India. India is naturally endowed with immense solar energy potential. An estimated 5,000 trillion kWh of solar energy is incident annually across its landmass, with most regions receiving 4–7 kWh per square meter daily. Solar photovoltaic (PV) technology offers immense scalability, making it a key solution in India's transition to renewable energy. Solar power also enables decentralized energy production, which is especially advantageous for rural and remote areas, helping to meet energy demands for lighting, cooking, heating, and cooling. From an energy security perspective, solar is among the most reliable sources, given its abundant availability. Theoretically, capturing even a small fraction of incident solar energy could suffice to meet the country’s entire power needs (MNRE, Solar Overview).

Over the past decade, solar energy has visibly transformed India’s energy landscape. Decentralized solar applications have brought light and clean energy to millions of villagers, improving their quality of life in environmentally friendly ways (MNRE, Solar Overview). In parallel, the urgency to mitigate climate change has driven momentum toward adopting sustainable energy strategies (Pal et al., 2023; Kakran et al., 2024).

India’s solar energy sector has become a key contributor to the nation’s grid-connected power capacity. It aligns with the government’s sustainable growth agenda and plays a vital role in achieving national energy security (MNRE, Solar Overview). Reducing dependence on fossil fuels, which are major contributors to atmospheric CO₂ and other greenhouse gases (GHGs), is critical to slowing global warming (Ong et al., 2022; Kakran et al., 2024). This transition is particularly crucial in hard-to-decarbonize sectors like aviation and heavy industry (Ansell, 2023). Rising GHG emissions have put Earth’s climate and ecosystems in jeopardy (Supe et al., 2024; Misila et al., 2020). In response, societies are turning toward low-carbon energy sources, with solar power leading the charge. Government incentives and policies have spurred a dramatic increase in PV installations globally, including in India (Supe et al., 2024).

Despite being the world’s third-largest producer and consumer of electricity (Statistical Review of World Energy, 2021), solar PV currently accounts for just 10% of India's electricity consumption. Renewables as a whole cover only about 25% (www.renewablesindia.in; Kakran et al., 2024). However, India is making rapid progress. From 2021 to 2025, significant strides have been made in expanding solar capacity across various states and union territories. Rajasthan, Gujarat, Karnataka, and Tamil Nadu have led this growth, while regions like Ladakh and Sikkim are beginning to tap into their potential. The National Institute of Solar Energy (NISE) estimates India’s solar potential at about 748 GW, assuming just 3% of wasteland is used for solar PV. Solar energy is a cornerstone of India’s National Action Plan on Climate Change, with the National Solar Mission (NSM), launched in 2010, at its heart. This mission seeks to position India as a global solar leader by enabling widespread solar technology adoption. It also supports India’s Nationally Determined Contributions (NDCs), which aim to achieve 50% of cumulative electric power capacity from non-fossil sources and reduce the emission intensity of GDP by 45% from 2005 levels by 2030 (MNRE, Solar Overview).

Achievements

India has witnessed a remarkable transformation in its solar energy landscape in recent years. Leading states such as Rajasthan, Karnataka, and Gujarat have emerged as pioneers in large-scale solar installations, setting benchmarks for the rest of the country. At the same time, smaller states and Union Territories are making vital contributions toward regional energy self-sufficiency and decentralized power generation.

This growth reflects a strategic shift toward renewable energy, supported by consistent policy initiatives and technological advancements. The country’s continued investments in solar infrastructure, energy storage solutions, and smart grid integration are laying a strong foundation for long-term sustainability.

With these efforts, India is on track to meet its ambitious solar energy targets by 2030, aligning with its global climate commitments and playing a crucial role in the global movement toward clean and sustainable energy (Year-wise Achievements, MNRE: 2021, 2022, 2023, 2024, and 2025).

The data provided outlines the state-wise solar installation capacity (in MW) in India, for the period from 31st March 2021 to 31st March 2025. Here's a theoretical analysis based on this data, focusing on key observations and trends in solar energy development.

Key Observations and Theoretical Insights:

1. Overall Growth in Solar Capacity: India's total solar capacity has seen an exponential increase from 41,236 MW in 2021 to 105,646 MW by 2025. This represents a growth of more than 2.5 times over the 4-year period. This surge in capacity reflects the country’s commitment to expanding its renewable energy sector, driven by the government’s policies and global initiatives to combat climate change.
2. Dominance of Certain States: Rajasthan, Karnataka, and Gujarat are leading the solar installations in India. For instance, Rajasthan's capacity is expected to grow from 5,925 MW in 2021 to 28,286 MW by 2025, making it the largest contributor to the national total. Similarly, Gujarat, another solar powerhouse, shows an increase from 4,469 MW in 2021 to 18,496 MW in 2025. These states have abundant sunlight, vast land areas, and supportive government policies, which facilitate the rapid expansion of solar installations.
3. State-Specific Growth Trends: States like Madhya Pradesh and Telangana also show notable growth. Madhya Pradesh, for example, will increase its capacity from 2,544 MW to 5,118 MW by 2025. Tamil Nadu’s growth from 4,527 MW to 10,153 MW also indicates its rising contribution to the solar energy sector, in line with its aggressive renewable energy policies. Kerala and Uttarakhand exhibit steady growth, moving from smaller capacities to more significant ones. Kerala’s increase from 277 MW to 1,538 MW and Uttarakhand’s from 380 MW to 593 MW over the same period highlights the potential of states with lower initial capacities to grow rapidly.
4. Rural and Underdeveloped States: Some states with lower initial solar capacity, such as Arunachal Pradesh and Nagaland, exhibit gradual growth. For instance, Arunachal Pradesh is projected to increase its capacity from 10.16 MW to 14.85 MW by 2025. These states, while starting with smaller figures, are gradually contributing more, potentially due to localized initiatives like rooftop solar installations and government programs focused on rural electrification.
5. Union Territories and Smaller Regions: Delhi, Chandigarh, and Puducherry show solid growth, though they started with relatively smaller capacities. Delhi’s capacity is projected to increase from 194 MW in 2021 to 313 MW in 2025, showing the city-state’s ongoing push towards sustainability despite its limited land area. Puducherry and Dadra & Nagar Haveli and Daman & Diu also see significant increases, although these UTs begin with much smaller bases.
6. Focus on Solar in Industrial and Agricultural Sectors: States like Maharashtra, Uttar Pradesh, and Bihar show a steady increase in solar installations. As industrial and agricultural sectors grow, these states are investing in solar solutions for irrigation and factory operations. For example, Bihar’s growth from 180 MW to 328 MW by 2025 reflects this trend.
7. Challenges and Opportunities: The data also reveals challenges related to land availability, grid connectivity, and resource mobilization in some states. However, the increase in solar energy investments, combined with technological advancements in storage systems and grid integration, should address these issues. Smaller states with lower initial capacity like Meghalaya and Sikkim may find it harder to compete, but they can explore niche solutions like decentralized solar power and rooftop solar installations.
8. Future of Solar Energy in India: The overall expansion in solar energy capacity signifies a transition towards a more sustainable and self-reliant energy sector. The integration of solar power with storage systems, as well as improvements in energy transmission infrastructure, will enable a smoother energy transition. The rapid adoption of solar energy can also lead to job creation in the renewable energy sector, technological innovation, and a significant reduction in carbon emissions, which are critical goals for India's sustainable development.

"Table-1 presents the state-wise cumulative solar installed capacity in the country for the period from 31-03-2021 to 31-03-2025." energy (Year-wise Achievements, MNRE: 2021, 2022, 2023, 2024, and 2025).

This graph depicts the top 10 states/union territories in India with the highest solar power generation capacity (in MW) from 2021 to 2025. Prominent among these are states like Rajasthan, Gujarat, Maharashtra, Karnataka, and Tamil Nadu. The graph clearly shows a consistent annual increase in solar capacity in these states, indicating significant progress towards India's renewable energy targets." energy (Year-wise Achievements, MNRE: 2021, 2022, 2023, 2024, and 2025).

Highlights under Major Ongoing Schemes

This section summarizes the major achievements of the Ministry of New and Renewable Energy (MNRE) during the year 2024–25 under various flagship schemes:

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)

In January 2024, MNRE released revised comprehensive guidelines for the PM-KUSUM scheme, streamlining and consolidating earlier circulars to simplify implementation. To ensure better quality installations, the specifications and testing procedures for solar pumps were also revised.

v Component A (Standalone Solar Power Plants): 397 MW capacity installed till December 2024.

v Component B (Standalone Solar Pumps): Over 6.16 lakh pumps installed.

v Component C (Solarization of Grid-Connected Pumps): 1.12 lakh pumps solarized.

Under Feeder Level Solarization, states have tendered their allocated capacities, and Letters of Award (LOAs) for more than 20 GW have been issued. With a gestation period of 24 months, most installations are expected to be completed by March 2026 (Source: Annual Report 2024–25).

2. Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSG-MBY)

Launched to boost rooftop solar adoption among residential households, this scheme aims to install rooftop solar systems in 1 crore homes by FY 2026–27, with a total outlay of ₹75,021 crore.

v Within just 10 months of its launch, more installations were recorded under this scheme than in the previous 10 years combined (Source: Annual Report 2024–25).

3. CPSU Scheme for Grid-Connected Solar PV Projects

This scheme promotes the use of domestically manufactured solar modules in government sector installations.

v Total Projects Awarded: ~8.2 GW

v Commissioned Capacity (as of Dec 2024): 1.81 GW

v Remaining projects are under various stages of implementation (Source: Annual Report 2024–25).

4. Development of Solar Parks and Ultra Mega Solar Power Projects

Under this scheme:

v 55 solar parks with a combined capacity of 39,958 MW have been approved in 13 states.

v Fully Developed: 18 parks (10,856 MW)

v Partially Developed: 6 parks (4,775 MW)

v Commissioned Projects: 12,209 MW across 24 parks (Source: Annual Report 2024–25)

5. Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules

This national programme aims to strengthen India's solar manufacturing ecosystem.

v Incentive Outlay: ₹24,000 crore

v Capacity Awarded: 48,337 MW (partially and fully integrated manufacturing units) currently under implementation (Source: Annual Report 2024–25).

6. Green Energy Corridor (GEC)

This initiative is critical for integrating renewable energy with the power grid.

v Phase-I Achievements (as of Dec 2024):

o   9,136 km of intra-state transmission lines constructed

o   21,413 MVA substations commissioned

o   Central grant of ₹2,877.25 crore disbursed

v Phase-II Progress:

o   72 out of 91 packages tendered

o   52 packages awarded

o   ₹384.24 crore disbursed to states (Source: Annual Report 2024–25).

7. Human Resource Development Programme

MNRE continues to invest in skilling India’s clean energy workforce.

v Suryamitras Trained (as of Dec 2024): 87,372

v Employment Generated: 28,500+

v Jal-Urjamitra Programme (IIT Roorkee): 455 candidates & 54 trainers trained

v Vayu Mitra Programme: 2,070 participants, including 251 women (Source: Annual Report 2024–25).      

8. Renewable Energy Research and Technology Development (RE-RTD) Programme

In 2024–25, 11 R&D projects were supported focusing on indigenization, efficiency, and cost-effectiveness.

Key Outcomes:

v High-efficiency perovskite solar cells

v First trial of hydrogen-fueled buses in Leh

v Biomass gasification via plasma pyrolysis

v India’s first hydrogen fuel cell manufacturing pilot line

v Establishment of primary solar cell calibration facility (Source: Annual Report 2024–25).

9. Solar-Wind Hybrid Projects

Revised guidelines (issued on 21.01.2023) aim to:

v Promote renewable capacity addition

v Ensure Renewable Purchase Obligation (RPO) compliance

v Encourage transparent and competitive power procurement

v Facilitate risk-sharing frameworks for involved stakeholders (Source: Annual Report 2024–25).

Key Challenges in India’s Solar Energy Sector

Despite significant progress, India’s solar energy sector continues to face a range of challenges that hinder its rapid and sustainable expansion. These issues span technical, environmental, economic, and regulatory domains:

1. Higher Per-Unit Production Costs

While the overall cost of solar energy has dropped considerably over time, small-scale projects still incur relatively higher per-unit production costs compared to conventional energy sources. To mitigate this, the government is encouraging the development of large-scale solar parks to achieve greater economies of scale (Source: Forum IAS, 2023).

2. Implementation Barriers

Establishing solar parks often involves complex land acquisition processes, especially since such projects require expansive tracts of land. In addition, the sector struggles with high transmission and distribution losses and the technical complexities of grid integration. The intermittent nature of solar power—where energy is produced only during daylight—creates load balancing issues, especially during peak demand hours at night (Source: Forum IAS, 2023).

3. Environmental and Biodiversity Concerns

Large-scale solar projects can result in ecological disruptions. For example, in states like Rajasthan and Gujarat, some solar initiatives have been delayed or halted because transmission infrastructure interfered with the habitat of the critically endangered Great Indian Bustard. This highlights the need for environmentally sensitive planning (Source: Forum IAS, 2023).

4. Slow Growth in Rooftop Solar Segment

Although India has seen commendable growth in installed solar capacity, its contribution to total power generation remains relatively modest. Rooftop solar installations, in particular, have significantly underperformed, achieving less than 20% of the targeted capacity as of October 2022 (Source: Forum IAS, 2023).

5. Financial Constraints and Lack of Affordable Credit

The high upfront costs associated with rooftop solar systems pose a major barrier for residential consumers and SMEs. Moreover, the absence of innovative financing models, such as long-term, low-interest loans, further limits adoption, especially among lower-income and rural households (Source: Forum IAS, 2023).

6. Dependence on Imports

India remains heavily reliant on imported solar equipment, particularly from China. In FY 2021–22 alone, India imported solar cells and modules worth approximately USD 76.62 billion, with China accounting for nearly 78.6% of these imports. This dependency weakens domestic manufacturing and exposes the sector to global supply chain risks (Source: Forum IAS, 2023).

7. Inadequate Solar Waste Management

India is projected to generate approximately 1.8 million tonnes of solar waste by 2050. However, the current e-waste regulations do not mandate recycling or responsible disposal of solar components. This poses a long-term environmental risk if not addressed through robust policy and industry action (Source: Forum IAS, 2023).

8. WTO-Related Trade Challenges

India's Domestic Content Requirement (DCR) policy—which mandates the use of domestically produced solar cells and modules in certain projects—has faced legal objections at the World Trade Organization (WTO). While the DCR aims to support local manufacturing, it also creates trade-related challenges due to international competition and compliance issues (Source: Forum IAS, 2023)Benefits of solar energy

1. Clean & Green Energy

Solar energy is a pure, pollution-free source of power. Unlike fossil fuels, it doesn't release harmful emissions or pollutants, making it eco-friendly and sustainable. Harnessing the sun's power helps combat climate change and reduce our carbon footprint (Punjab Energy Development Agency).

2. Independence from Other Energy Sources

Solar energy reduces our reliance on finite and polluting resources like coal, oil, and natural gas. With widespread adoption, it eases pressure on traditional power systems and promotes energy independence (Punjab Energy Development Agency).

3. Low Maintenance Requirements

Once installed, solar systems are almost maintenance-free:

v  Occasional cleaning (1–2 times/year).

Inverters may need replacement after 5–10 years. Overall, the maintenance cost is minimal compared to the long-term savings (Punjab Energy Development Agency).

4. Enhanced Safety

Solar energy systems are safer and less hazardous than conventional energy systems. There are no risks of fires or harmful emissions, and handling the system is straightforward with minimal risk (Punjab Energy Development Agency).

5. 100% Renewable

Solar energy is a renewable and inexhaustible source. As long as the sun shines, energy can be generated — anywhere on the planet. It’s a reliable energy source for the long-term future (Punjab Energy Development Agency).

6. Reduction in Electricity Bills

One of the biggest advantages — massive savings on electricity bills. Depending on your energy usage and system size, you can significantly reduce or even eliminate your bill, making it a smart investment (Punjab Energy Development Agency).

7. Versatile Applications

Solar energy is extremely versatile in its use:

v  Electricity generation (solar PV)

v  Heating (solar thermal)

v  Water purification

Powering remote areas, satellites, street lights, industrial plants, and homes (Punjab Energy Development Agency).

8. Boost to Technological and Industrial Growth

The rise in solar adoption drives technological innovations and creates new industries and jobs in solar manufacturing, installation, and research. It plays a key role in building a sustainable (Punjab Energy Development Agency).

Conclusion

India’s journey in solar energy between 2021 and 2025 reflects a strong commitment to sustainable growth, energy independence, and climate action. With installed capacity rising from 41.2 GW to 105.6 GW, the country has demonstrated rapid advancement through progressive policies, technological innovation, and large-scale implementation. Initiatives like PM-KUSUM, solar parks, and rooftop solar programs have enhanced both grid-connected and decentralized solar systems. Moreover, India’s leadership in the International Solar Alliance and focus on domestic manufacturing have solidified its global role in clean energy. Solar energy has not only reduced carbon emissions but also created jobs, improved rural livelihoods, and strengthened the nation’s energy security. As India moves forward to achieve its 2030 targets, solar power will continue to be a cornerstone of its green economy. The collective impact of these developments makes solar energy not just a renewable resource, but a transformative force for sustainable national development.

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