As the urgency of climate change grows, solar energy is emerging as a central pillar in the global transition toward cleaner energy sources. The rapid expansion of solar capacity and technological advancements underscore the industry’s evolution from a niche segment to a primary contributor to renewable energy targets.
Global solar capacity has seen a striking increase—from a modest 1.22 gigawatts (GW) in 2000 to 1,418.97 GW in 2023, as per the latest World Solar Report, released by the International Solar Alliance (ISA) at its 7th Assembly. In 2023 alone, the sector added 345.83 GW, making up three-quarters of all new renewable energy capacity. With this momentum, ISA projects that solar capacity could reach between 5,457 and 7,203 GW by 2030.
India, too, is leveraging solar power to spearhead its transition to clean energy, aiming to transform its energy landscape and meet ambitious climate targets. Solar energy has become central to the country’s renewable energy strategy, with rapid growth in capacity, technological advances, and policy support driving the shift.
“Solar energy has had a visible impact on the Indian energy scenario during the last few years,” says Prashant Kumar Singh, secretary, Ministry Of New And Renewable Energy. “In addition to large-scale solar power plants, solar energy-based decentralised and distributed applications have benefited millions of people in Indian villages by meeting their energy needs in an environmentally friendly manner.”
The financial support for renewable energy in India mirrors the global investment shift. As per the report, global energy investments have grown from $2.4 trillion in 2018 to a projected $3.1 trillion in 2024, with solar taking the lead in renewable energy investments. Solar now represents 59% of global renewable energy investment, driven by declining costs and technological improvements. The Asia-Pacific region spearheads this growth, contributing $223 billion to solar in 2023, while Europe, the Middle East, and Africa (EMEA) and the Americas invested $91 billion and $78 billion, respectively.
“GOI is actively supporting through financial and technical means to assist developing countries in expanding their solar power grids to meet their energy needs,” says Singh, pointing to India’s push to expand its solar infrastructure, which has positioned the country as a major player in the renewable space.
The Asia-Pacific (APAC) region, with India at the forefront, contributed a significant $223 billion to solar investments in 2023 alone. This regional focus, coupled with falling solar costs, has further fuelled India’s solar expansion. “The cost of clean energy has rapidly declined, and the share of renewable energy has increased,” says Mio Oka, country director, India Resident Mission, Asian Development Bank (ADB), adding that the cost of solar PV has declined by over 80% in the last decade to about $0.05 per kilowatt hour.
India is also a key contributor to technological advances in the solar sector. Efficiency improvements in solar photovoltaic (PV) technology have driven down costs while boosting output. Advanced monocrystalline modules, for example, now boast an efficiency of 24.9%, setting a new benchmark in solar performance.
Moreover, India’s solar sector has also witnessed a major employment boom. Solar jobs have surged to 7.1 million worldwide, with India emerging as a top job creator. “With the support of government policies and improving economics, the solar energy sector has become highly attractive from an investor’s perspective,” adds Singh.
Beyond solar PV, India is exploring green hydrogen as a decarbonisation tool, particularly for industries that rely heavily on fossil fuels, such as steel and fertilisers.
