A decade back, India’s grid-connected solar capacity was at a moderate figure of 6 GW. Oil and coal were dominating the energy sector and the PV technology was very expensive to import for renewable energy companies in India. Fast forward to today, the official solar capacity has crossed 160 GW — a remarkable expansion that has changed global energy economics. But how did a developing nation like India with various challenges like DISCOM distress, unavailability of connectivity and tight capital markets pull off one of the fastest renewable scale-ups in modern history? Let’s have a look.
National Solar Mission Scale-up and Ambitious Capacity Targets
India dramatically scaled up its National Solar Mission target from 20 GW in 2016 to an unprecedented 100 GW by 2022, signalling a massive, long-term market opportunity to global investors. This ambitious five-fold increase transformed India into a primary destination for international capital, attracting billions of dollars in foreign direct investment (FDI) and low-cost global financing. By establishing a clear, high-volume deployment pipeline, the target gave global manufacturers the confidence to invest in local supply chains and set up domestic production facilities.
From Megawatts to Gigawatts: A Shift in Ambition
Just a decade back, a 50MW solar power project felt like a landmark deal — something worth proudly showcasing at industry announcements. Today, the same announcements have shifted to GW-scale. India has moved from scattered, small-scale projects to developing massive scale solar parks. It’s not just an adjustment in numbers; it is a radical change in the very process of conception, planning and implementation.
Things like land acquisition, evacuation systems, finance models and EPC ability needed to be scaled up for the new scale of operations. And in transition from small-scale solar projects to ultra mega solar Parks, green energy companies in India have expanded their EPC capabilities by adopting high-capacity utility designs, advanced tracking systems and robust high-voltage power evacuation networks.
Govt’s Push to Become Self-Reliant in RE
Around 2016-17, India’s push for self-reliance in solar manufacturing laid the strategic and conceptual groundwork for the Approved List of Models and Manufacturers (ALMM) framework. By pairing the National Solar Mission’s rapid scaling targets with early domestic content incentives, the government ensured a stable, high-volume market for home-grown factories. This momentum spurred immediate private investments into domestic assembly lines, protected local jobs and built the foundational technical expertise required for advanced cell and module fabrication.
Production-Linked Incentives (PLI) and Domestic Manufacturing
For years, India’s solar energy expansion relied heavily on importing silicon modules from other countries. While imports accelerated installation speeds, they left the nation vulnerable to supply chain shocks and trade frictions. Realising this strategic exposure, the country’s solar energy policy pivoted towards domestic production.
The implementation of Basic Customs Duty (BCD) on imported cells and modules, alongside the Production-Linked Incentive (PLI) scheme, significantly accelerated India’s domestic solar manufacturing capacity. In response, major solar panel manufacturing company in India established gigawatt-scale, vertically integrated production facilities covering the entire value chain from polysilicon to finished modules. Consequently, India transitioned from an import-dependent market into an emerging exporter of solar technology.
ISTS Waiver — A Powerful Enabler for RE Project Viability
The Inter-State Transmission System (ISTS) waiver emerged as a quiet but critical enabler for renewable energy project viability by completely removing inter-state transmission charges for solar and wind projects. First introduced around 2016 for a limited window, this powerful fiscal incentive allowed renewable power companies in India to set up power plants in resource-rich states and transmit that clean energy across state lines to power-deficit regions without facing heavy wheeling costs. By eliminating these interstate transit fees, the policy significantly reduced landing costs for electricity, directly lowered solar tariffs and shielded developers from regulatory hurdles at state borders.
What Lies Ahead?
Hitting 160 GW is a definitely a massive milestone for India but it is not over yet. If the last decade proved that India can build solar infrastructure at scale, the next decade is set to show how it completely reshapes a modern industrial grid around it. With India eyeing an ambitious 500 GW of non-fossil power by 2030, the real challenge is moving from simply building green capacity to actually making the grid handle it all. That puts Battery Energy Storage Systems (BESS), pumped storage hydropower (PSH), 24/7 round-the-clock (RTC) power agreements and green hydrogen right at the center of the country’s energy future.
| Disclaimer: The information provided in this blog is for general informational purposes only and not professional advice. Jakson Green Limited bears no responsibility for errors, omissions or the accuracy of the information provided. |
