India’s Next Energy Leap
By
V.P. Nandakumar,
MD & CEO of Manappuram Finance Ltd
India has quietly scripted one of the most remarkable energy transitions in the world. In just over a decade, the country’s solar power capacity has risen from less than three GW in 2014 to over 100 GW by 2025, making it the third-largest solar power producer globally. Expansive projects like the Bhadla Solar Park in Rajasthan and innovative floating solar plants in Kerala have become symbols of ambition, while domestic manufacturing has received a boost through the Production Linked Incentive scheme. These achievements represent only one side of India’s solar story, as even now, over 70% of electricity in India is generated from coal. The next leap will not come from massive solar parks alone, but from rooftops, especially those in rural India.
According to CEEW (Council on Energy Environment and Water), over 25 crore households across India have the potential to deploy 637 GW of solar energy capacity on rooftops. Deploying just one-third of this total solar technical potential could support the entire electricity demand of India’s residential sector. Beyond macro targets, rooftop solar can transform daily life. Families plagued by erratic power supply stands to gain reliable electricity; households could see monthly bills drop by 70 to 90 %; and villages begin generating their own clean power rather than waiting for it to arrive from distant coal plants.
Recent policy shifts have opened a window to make this vision real. The Pradhan Mantri Surya Ghar: Muft Bijli Yojana, launched in 2024, promises free electricity up to 300 units per month for one crore households. In its first year, over one crore households have registered under the scheme, indicating a significant surge in interest. This momentum is encouraging, yet adoption in rural areas remains patchy. The reasons are not hard to find. Even after subsidies, many households cannot afford the upfront cost of a one-to-three kilowatt system; small-ticket loans are hard to come by as banks often view them as low-value and high-risk; and the process of applying for subsidies and net-metering approvals is complicated, varying from state to state.
Just as significant is the question of trust and awareness. In villages, misinformation about solar energy—from fears that panels will fail during monsoons to doubts about maintenance—can deter even those who might otherwise benefit. Consumers who are unsure about the quality of equipment or services are unlikely to invest in a technology they perceive as unfamiliar, however attractive the long-term savings are.
Overcoming these barriers requires a shift in how solar is promoted and implemented. Financial innovation is key. Credit guarantees, micro-loans through self-help groups, and community solar models where several households share a common installation can bridge the affordability gap. Awareness campaigns, modelled on the success of the UJALA LED bulb drive, can demystify rooftop solar through panchayat meetings, school demonstrations, and door-to-door outreach, making it aspirational rather than intimidating. Equally important is simplifying the consumer journey. A single digital platform that allows households to apply for subsidies, choose certified installers, and track net-metering approvals would replace today’s fragmented processes with clarity and transparency.
Examples of success already exist. Gujarat’s Modhera, India’s first 24/7 solar-powered village, demonstrates how local generation can transform livelihoods. Kerala’s ANERT portal, which tracks rooftop installations and subsidy disbursal, shows how digital tools can simplify adoption. These models, scaled and adapted across states, can create a ripple effect. When one village visibly benefits, neighboring communities are far more likely to follow. Social signalling—seeing solar panels on a neighbour’s roof—often proves as powerful as subsidies in driving adoption.
India’s solar journey so far has been measured in megawatts and national targets. But its future will be judged by how deeply the transition reaches the villages, by whether solar panels become as common on rural rooftops as television antennas or water tanks. Making that happen is not merely an environmental imperative; it is an economic and social one. It means lower bills for families, resilience against outages, and local empowerment in a clean energy era.
If policymakers can bridge the financing gaps, build trust, and simplify access, rooftop solar will stop being just a government program and become a popular choice—one that rural households demand, not merely accept. India has already proven it can build the world’s largest solar parks. The real test now is whether it can light up every rural rooftop under the same sun.
Pic Courtesy: google/ images are subject to copyright
