Solar Energy Initiatives and Challenges in India

India is focusing heavily on solar energy as part of its renewable energy strategy. As of September 2024, the country has a total solar capacity of approximately 748,990 megawatts (MW). However, only 90,760 MW has been installed, which is about 12% of the total capacity. The government aims to achieve a target of 292,000 MW by 2030. Recent scrutiny from the Parliamentary Standing Committee on Energy has brought into light the inadequacies in the government’s efforts and budget allocations for solar energy.

Current Status of Solar Energy in India

India’s installed solar capacity is lower than its total potential. As of late September 2024, only 90,760 MW of solar energy capacity has been installed. The government’s ambitious target of 292,000 MW by 2030 appears challenging given the current pace. The Standing Committee has expressed dissatisfaction with the slow progress of solar energy projects.

PM Surya Ghar – Muft Bijli Yojana

This flagship initiative aims to install solar systems on 10 million rooftops by 2026-27. The budget allocation for the scheme in 2024-25 is Rs 6,250 crore. The ministry reports that 14 million registrations have been completed, with 480,000 homes having solar panels installed. However, the committee criticises the slow implementation, noting that only 500,000 panels have been installed from nearly 2 million applications.

Budget Allocation and Utilisation

The Ministry of New and Renewable Energy (MNRE) requested Rs 12,001.70 crore for 2024-25 but received Rs 21,230 crore. Despite this increase, previous years saw under-utilisation of allocated budgets. The ministry attributed this under-utilisation to the COVID-19 pandemic and a lack of project proposals, especially from northeastern states.

Focus on Solar Energy Over Other Sources

The Standing Committee’s report reveals that about 87% of the MNRE’s budget is allocated to solar energy. Only 4% is reserved for wind and small hydroelectric projects. The government is also working towards achieving 500 GW of installed capacity from non-fossil sources by 2030. As of September 2024, non-fossil energy accounts for 46.31% of the total installed electricity capacity in India.

Future Prospects and Challenges

The Government of India is optimistic about reaching its renewable energy targets. However, the slow installation rates and high dependency on solar energy raise concerns. The ministry aims to increase the pace of solar panel installations to meet the ambitious targets set for the coming years.

Questions for UPSC:

1. Critically analyse the effectiveness of the PM Surya Ghar – Muft Bijli Yojana in achieving its targets.
2. Estimate the impact of budget allocation on the performance of renewable energy projects in India.
3. Point out the challenges faced by the Ministry of New and Renewable Energy in implementing solar energy initiatives.
4. What are the implications of focusing predominantly on solar energy for India’s overall energy strategy?

Answer Hints:

1. Critically analyse the effectiveness of the PM Surya Ghar
Muft Bijli Yojana in achieving its targets.

1. The scheme aims to install solar systems on 10 million rooftops by 2026-27, with a budget of Rs 6,250 crore for 2024-25.
2. As of October 2024, only 480,000 homes have solar panels installed, falling short of expectations from nearly 2 million applications.
3. The ministry claims a daily installation rate of 3,000 to 3,500 solar panels, but progress is criticized as slow.
4. The committee noted that only 300,000 out of 2 million applicants have received subsidies, indicating a bottleneck in implementation.
5. Delays attributed to monsoon conditions further hinder the scheme’s effectiveness in meeting its ambitious targets.

2. Estimate the impact of budget allocation on the performance of renewable energy projects in India.

1. The MNRE requested Rs 12,001.70 crore for 2024-25 but received Rs 21,230 crore, indicating budget increase.
2. Despite increased allocation, previous years saw under-utilisation rates of 88%, 82%, and 83% for 2021-22, 2022-23, and 2023-24, respectively.
3. Under-utilisation attributed to COVID-19 pandemic impacts and insufficient project proposals, especially from northeastern states.
4. Approximately 87% of the budget is focused on solar energy, limiting resources for other renewable projects.
5. Budget allocation impacts timely project execution, with slow progress affecting overall performance and targets in renewable energy.

3. Point out the challenges faced by the Ministry of New and Renewable Energy in implementing solar energy initiatives.

1. Slow installation rates hinder the achievement of the ambitious solar capacity target of 292,000 MW by 2030.
2. Only 90,760 MW has been installed as of September 2024, representing about 12% of the total solar capacity potential.
3. Delays in project implementation attributed to monsoon conditions and bureaucratic hurdles in processing applications and subsidies.
4. Lack of project proposals, particularly from northeastern states, limits the expansion of renewable energy initiatives.
5. Heavy budget allocation towards solar energy neglects other renewable sources, reducing overall energy diversification.

4. What are the implications of focusing predominantly on solar energy for India’s overall energy strategy?

1. Over 87% of the MNRE’s budget is allocated to solar energy, potentially neglecting other renewable sources like wind and hydro.
2. This focus may lead to an imbalance in energy diversification, increasing vulnerability to solar energy production fluctuations.
3. Heavy reliance on solar energy could affect energy security if targets are not met, impacting overall energy availability.
4. Potential environmental impacts and resource allocation challenges may arise from prioritizing solar over other renewable technologies.
5. A comprehensive energy strategy should balance solar with other renewables to ensure sustainable and resilient energy infrastructure.