India has started its new journey on Green Path that will lead it to a new model of economic development and we can rightly say that it is not just a spectator but a prominent player in the global solar revolution. This development could avoid the carbon-intensive approaches that many countries have pursued in the past – and provide a blueprint for other developing economies.
Launched in 2010, the National Solar Mission aims to establish India as a global leader in solar energy. The mission has set ambitious targets, including a significant increase in installed solar power capacity, with the goal of making solar competitive with fossil-based energy options.
NSM is a major initiative of the Government of India with active participation from States to promote ecological sustainable growth while addressing India’s energy security challenges. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. The Mission’s objective is to establish India as a global leader in solar energy by creating the policy conditions for solar technology diffusion across the country as quickly as possible. This is line with India’s Nationally Determined Contributions (NDCs) target to achieve about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources and to reduce the emission intensity of its GDP by 45 percent from 2005 level by 2030.
India’s solar installed capacity has seen a remarkable increase in recent years. As of 2023, India stands 4th, globally in solar power capacity, with a jump from 21,651 MW to 70,096 MW in just five years. With ambitious targets and policies like the Production Linked Incentive, India is propelling itself to achieve 500GW of renewable energy capacity by 2030. The commitment is not just towards sustainable energy but towards securing a greener tomorrow for the entire planet.
In order to achieve the above target, Government of India have launched various schemes to encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc.
Government has taken several steps for promotion of solar energy in the country. These include:
- Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30,
- Notification of standards for deployment of solar photovoltaic system/devices,
- Setting up of Project Development Cell for attracting and facilitating investments,
- Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
- Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
- Notification of “The electricity (Late Payment Surcharge and related matters) Rules 2002 (LPS rules).
- Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power including Solar power through exchanges.
