India's Solar Energy Growth Faces Major Challenges
Why isn’t India’s solar boom delivering better results?
Deccan Herald
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Despite significant investment in solar energy, India struggles to translate capacity into actual generation due to transmission bottlenecks, inadequate energy storage, and reliance on fossil fuels. As of 2026, solar contributes only 13% to the energy mix, highlighting the need for infrastructure improvements.
- 01India's installed solar capacity surged to 154 GW from less than 3 GW in 2014.
- 02In April 2026, thermal power accounted for 73% of electricity generation, while solar contributed only 13%.
- 03Transmission infrastructure lags behind solar project growth, causing 300 GWh of renewable energy curtailments in Q1 2026.
- 04India's domestic battery manufacturing capacity is only 4 GWh, far below the projected demand of 272 GWh by FY2030.
- 05Rooftop solar capacity reached 23.5 GW by March 2026, but growth is hindered by uneven net metering implementation.
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On Labour Day 2026, India's electricity prices fell to near zero, largely due to a record solar generation of approximately 57.5 GW. Despite this, solar energy's contribution to actual generation remains limited, accounting for only 13% of the energy mix, as thermal power dominates at 73%. The rapid expansion of solar energy capacity, which has risen to 154 GW since 2014, is not matched by the necessary transmission infrastructure, leading to significant curtailments of renewable energy. The Central Electricity Regulatory Commission is working on measures to enhance transmission capabilities. Additionally, India faces challenges in energy storage, with current battery manufacturing capacity at only 4 GWh, while projections suggest a need for 272 GWh by FY2030. Rooftop solar has seen growth to 23.5 GW, but uneven net metering and subsidized electricity hinder further progress. Without addressing these infrastructure and policy issues, India's solar potential may remain unrealized, despite being the world's third-largest renewable energy market.
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The limitations in solar energy generation and transmission could lead to increased electricity prices and hinder the transition to renewable energy.
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