Full Breakdown
Rethinking India's Solar Strategy: The Case for Solar Thermal Technologies
9/10/2025, 9:00:37 PM
Current Landscape of India's Renewable Energy
India has achieved a significant milestone by reaching 484.8 GW of total electric power installed capacity from non-fossil fuel-based energy resources, aligning with its Nationally Determined Contributions (NDCs) under the Paris Agreement. Solar photovoltaic (SPV) systems dominate this capacity, accounting for 116.25 GW, while solar thermal (ST) technologies contribute a mere 0.28%, with only 329.5 MW installed, of which 101 MW is operational. This raises concerns about India's heavy reliance on SPV systems, particularly given the challenges associated with the import of critical materials necessary for SPV manufacturing.
The Challenges of Solar Photovoltaic Dependency
India's dependence on SPV technology is underscored by the fact that 56% of solar cells and 65% of solar modules are imported from China. Furthermore, the country is entirely reliant on imports for essential minerals like lithium and cobalt, which are crucial for energy storage solutions. The current manufacturing capacity for solar panels and cells—74 GW and 25 GW, respectively—falls short of the projected demand of 500 GW of non-fossil capacity by 2030. Additionally, the rise in solar installations has led to an anticipated 600 kilotonnes of solar waste by 2030, with only 20% of materials from discarded panels currently being recovered.
The Promise of Solar Thermal Technologies
Solar thermal technologies, particularly concentrating solar power (CSP) systems, offer a viable alternative for high-temperature applications such as industrial heating and power generation. With industries consuming 40% of final energy primarily from fossil fuels, CSP could significantly contribute to decarbonization efforts. Regions like Rajasthan and Gujarat, which receive high solar irradiance, are ideal for CSP integrated with thermal energy storage (TES) technology, providing a reliable and cost-effective power generation solution.
Policy Support and Economic Viability
Despite the potential benefits of solar thermal technologies, government support remains limited compared to SPV systems. While the Ministry of New and Renewable Energy offers interest subsidies for solar water heaters, CSP technologies lack similar backing. The recent decision to withdraw Inter-State Transmission System charge waivers for solar PV projects may further impact the competitiveness of SPV, making a case for a more balanced approach that includes solar thermal technologies.
Criticism and Opposition
Critics argue that the current focus on SPV technologies may overlook the broader benefits of integrating solar thermal solutions into India's energy mix. They emphasize the need for a diversified strategy that leverages both SPV and solar thermal technologies to enhance energy security and reduce import dependency.
Official Statements and Future Directions
Experts advocate for a strategic embrace of both solar PV and solar thermal technologies, emphasizing the importance of strong policy support, local manufacturing, and effective waste management infrastructure. A balanced approach is essential for achieving India's ambitious clean energy targets, including the goal of 500 GW of non-fossil fuel capacity by 2030.
Verbatim Quotes
- “A more balanced approach that includes both PV and solar thermal—backed by strong policy support, local manufacturing and waste management infrastructure—is essential to ensure energy security.” — Dr. Shubham Jain, Research Associate, Ashoka Centre for a People-centric Energy Transition
- “Diversification is key to security India doesn’t need to choose between solar PV and solar thermal; it needs to embrace both strategically.” — Vaibhav Chowdhary, Director, Ashoka Centre for a People-centric Energy Transition
In conclusion, India's renewable energy strategy must evolve to incorporate solar thermal technologies alongside SPV systems to ensure a sustainable and secure energy future.
