What the world can learn from India’s solar energy journey

Earlier this year, India surpassed Germany to become the world's third-largest producer of solar and wind-powered electricity. More recently, in what marks an exemplary landmark in India’s clean energy transition, Diu has become the first Indian district to meet its entire daytime power demand through solar energy. A small coastal territory once grappling with power shortages is now powering every home and streetlight entirely with solar power.

Similarly, Rajasthan is looking at scaling up its renewable energy capacity to 125 GW from the current 30 GW in the coming years. These milestones underscore the scale and potential of India’s renewable resources, especially solar, which now contributes nearly 110 GW to the country’s total 226 GW renewable capacity. But numbers are only part of the story. Behind them is a bold policy shift that is transforming lives with clean energy access—most notably through schemes such as Pradhan Mantri Suryaghar Yojana (PMSY), which aims to solarize 10 million homes, Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM), and the Make in India initiative.

The PMSY Model: What We Can Learn

What sets PMSY apart is its focus on energy democratization, placing citizens at the centre of power generation. Launched in 2024, the scheme has succeeded in installing over a million rooftop solar units nationwide within its inaugural year. By addressing two fundamentals: access to reliable energy and economic empowerment, PMSY is creating a model that’s both scalable and people-centric.

A key enabler is its digital-first National Portal, which simplifies applications, ensures real-time tracking, and maintains transparency. It is a tangible representation of how digital innovation can be effectively leveraged to streamline processes and spur community engagement. To date, the portal has succeeded in attracting over 53.59 lakh applications and facilitating around 14.24 lakh installations.

Another breakthrough is PMSY’s financial inclusivity. With subsidies of up to INR 78,000 per household, collateral-free, low-interest loans, and the provision of 300 units of free electricity per month, the scheme has overcome one of the most persistent barriers to adoption: affordability. Already, over ₹7,685 crore in subsidies have been disbursed, benefiting more than 9.83 lakh households. This is what makes PMSY more than just about reducing electricity bills. It’s about democratizing energy access, enhancing the quality of life, and generating new income sources. The scheme has created over 17 lakh direct jobs across sectors like manufacturing, logistics, installation, and maintenance. This is not only strengthening India’s renewable energy ecosystem under the Make in India vision but also enabling citizens to become active contributors in the clean energy economy as micro-entrepreneurs.

A Model of Cooperative Federalism

The PM Surya Ghar Yojana exemplifies the power of India’s cooperative federalism in advancing the clean energy transition. Designed as a collaborative national effort, the scheme empowers states and union territories to tailor solar adoption strategies to their specific socio-economic and energy landscapes. As a result, it is not only expanding access to rooftop solar but also creating a national ecosystem where innovation, equity, and collaboration reinforce each other.

The scheme offers a robust framework for the states to actively customize national frameworks to regional contexts, driving impact across diverse geographies. The states of Rajasthan, Gujarat, Uttar Pradesh, Maharashtra, and Kerala are leading the way in adapting and accelerating this mission through targeted innovations, robust on-ground execution, and citizen engagement. Among these states, Gujarat and Maharashtra emerge as islands of excellence in rooftop solar adoption under the PMSY scheme. With over 3.36 lakh solar rooftop panels already installed, Gujarat has achieved its 2024–25 target. The installations have averted about 1,504 metric tonnes of CO₂ emissions and contributed nearly 41% to the nation’s total installed rooftop solar capacity.

Maharashtra follows closely with 23%, driven primarily by increasing demand from small and medium-sized businesses and urban centres. Chandigarh and Daman & Diu have achieved 100% of their government building rooftop solar targets.
The success of these states demonstrates a progressive model of integrating clean energy with grassroots empowerment. They are inspiring a national momentum driven by a combination of large-scale adoption, digitalization, citizen-centric benefits, fiscal sustainability, innovative local policies, and implementation.

The Opportunity in Digital Innovation

India’s solar journey is still unfolding, and like any transformational shift, PMSY is not without its challenges. While the scheme is already addressing the challenge of enhancing domestic manufacturing capacity and financial viability, as India looks ahead, it must tap into the growing opportunities in digital innovation and strategic collaboration.

The new frontier in digital innovation is expanding possibilities that are more in tune with the evolving energy landscape. From optimizing solar panel placement to predictive maintenance to load balancing and real-time grid analytics, AI and other digital tools offer immense potential. AI-driven analytics can also help DISCOMs anticipate demand spikes, manage rooftop supply fluctuations, and make data-driven investment decisions.

When aligned with on-the-ground realities, human capacities, policy reforms, and bold investments, these technological advancements can move the needle on transformative impact. And this is where a collaborative approach and multi-stakeholder partnerships become essential.

Conclusion: Improved Energy Access—What It Means for the People

The transformation that is underway in India demonstrates an aspiration for a better quality of life. It indicates a deliberate shift, where rising incomes drive not just greater consumption, but thoughtful, climate-conscious choices.

As the nation races toward its goal of solarizing 10 million households, PMSY offers a glimpse of the future: one where climate action, energy security, and economic empowerment go hand in hand. This is our opportunity to show the world that a country of 1.4 billion can lead the clean energy transition not just with megawatts, but with millions of empowered citizens at the helm.

Views are personal. Chandra is Director, MNRE, and Sarin is Director – Energy Transition, GEAPP