India’s solar energy policy framework combines large-scale renewable energy targets with financial incentives, manufacturing support, and infrastructure development to accelerate the country’s energy transition. The government has set a target of 500 GW of non-fossil fuel energy capacity by 2030 and aims to achieve net-zero emissions by 2070, positioning solar power at the center of its clean energy strategy.
On the demand side, the PM Surya Ghar Muft Bijli Yojana, launched in 2024, targets the solarization of 10 million households, enabling families to generate up to 300 units of free electricity per month through rooftop solar systems. India has also extended its rooftop solar target to 30 GW by FY2027, with installed rooftop capacity reaching 16.3 GW by January 2025. Five states—Gujarat, Maharashtra, Rajasthan, Kerala, and Tamil Nadu—account for nearly 70% of this capacity. The PM-KUSUM Scheme supports agricultural solarization through 30–50% subsidies for solar pumps and aims to add 34.8 GW of solar capacity by 2026, backed by ₹344 billion in financial support.
To strengthen domestic manufacturing, the government has allocated ₹240 billion under the PLI Scheme, targeting 39.6 GW of solar module production capacity. Additional protection comes through a 40% Basic Customs Duty on imported solar modules and 25% on solar cells, encouraging local production. Infrastructure initiatives such as the Green Energy Corridor, Ultra-Mega Renewable Energy Parks, and waived transmission charges for renewable projects further support sector growth. Together, these policies have made India one of the world’s fastest-growing solar markets while improving energy security and reducing carbon emissions.
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