As the 4th RE-Invest event in Gandhinagar, Gujarat, concluded, solar power took centre stage with significant commitments announced. Prime Minister Narendra Modi, during the event, referred to India’s solar revolution as a golden chapter in its renewable energy journey. RE-Invest 2024 saw major commitments from India Inc to increase the country’s renewable capacity by 570 GW, with manufacturers pledging 340 GW of solar modules and 240 GW of solar cells.

Installed solar capacity has grown 30 times over the last decade, from 2.82 GW in March 2014 to 87.21 GW by July 2024, making India the third-largest producer of solar power globally. The country is expected to reach 280 GW of installed capacity by 2030.

India’s solar manufacturing capacity is supported by policies like Performance Linked Incentives, non-tariff barriers, and ambitious targets. According to Mercom India, solar module and cell manufacturing capacity stood at 70.3 GW by December 2023.

Additionally, solar module exports surged by 91 per cent, reaching $1.97 billion in fiscal 2023-24. The Union Budget’s proposals for solar manufacturing will further boost global competitiveness and help Indian manufacturers scale up.

Despite this progress, India’s solar potential remains largely untapped. States like Rajasthan, Gujarat, and Karnataka lead solar power production, yet the country’s total potential is estimated at 748 GW, according to the National Institute of Solar Energy. Programmes like the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar panels for 1 crore households, and the KUSUM Scheme for farmers, are pivotal.

These initiatives empower people to generate their own electricity and help scale up clean energy deployment. Gujarat, particularly, has emerged as a leader, with the momentum built during the Gandhinagar event further energising these efforts.

On the manufacturing front, while India’s solar module imports from China dropped by 76 per cent and solar cell imports by 17 per cent between April and September 2024, the country remains reliant on imported raw materials. To become a global solar supplier, India must establish a sustainable, vertically integrated solar manufacturing ecosystem. We need to match China on both cost and innovation across three critical areas:

(i) Cluster development: Solar manufacturing clusters should encompass the entire supply chain, from modules down to cells, wafers, ingots, polysilicon, and other key components. Dholera in Gujarat is an emerging cluster, but many more such clusters are urgently needed across the country.

(ii) Global partnerships: Collaboration on emerging technologies like Perovskite Solar Cells, Bifacial Solar Panels, and tandem solar cells is crucial for India’s solar future. India should actively explore strategic partnerships with the US, EU, and other regions, leveraging their combined manufacturing expertise, technological advancements, and fiscal heft for maximum impact. A cooperative trade policy will help diversify and secure global supply chains for solar components.

(iii) Skill development: Advanced technical skills are necessary to facilitate the transition from module production to cell manufacturing and further upstream in the supply chain. India must foster robust government-private sector collaboration to launch comprehensive advanced manufacturing and R&D skill programmes, establish international talent exchanges, bolster industry-education partnerships, and encourage hands-on learning initiatives to fill the growing technical gap.

India has been a global front-runner in deploying and scaling up solar energy. The success of RE-Invest 2024, with strong participation from Indian and international stakeholders, reinforces India’s leading role.

With the right steps, India is set to sprint ahead in the solar race, driving the world’s clean energy transition.

The writer is Founder, Chairman and CEO, ReNew