India’s Solar Future And Emerging Trends In PV Growth – Ratul Puri, Chairman, Hindustan Power

How do you see the Indian solar PV market evolving over the next 3–5 years, especially in terms of capacity additions and emerging trends?

India’s solar photovoltaic (PV) sector is expanding at an unprecedented pace. Installed capacity has crossed 120 gigawatts (GW), with over 90 GW from ground-mounted projects, 20 GW from rooftop grid-connected systems and the rest from off-grid plants and other sources. In 2024 alone, India added more than 30 GW, which was greater than double the capacity added the previous year. With the government targeting 500 GW of non-fossil fuel capacity by 2030, annual additions of 35-45 GW of solar capacity will be essential to meet this goal.

The next phase of growth will involve hybrid projects that combine solar and battery storage, floating solar and greater adoption of rooftop systems by households and businesses. Policy moves such as the recent GST cut on modules and the expansion of domestic manufacturing under the Production Linked Incentive (PLI) scheme will also strengthen cost competitiveness and supply chain resilience.

What are the key challenges for solar project developers in India today, and how is Hindustan Power adapting its strategy to address them?

While the government has rolled out multiple policy initiatives and programmes, developers face challenges with land acquisition, transmission connectivity and upgradation of infrastructure. These hurdles, though being addressed gradually, continue to affect the pace of project execution.

At Hindustan Power, we address these issues by securing land well in advance, working closely with suppliers and partnering with both state utilities and local communities. This proactive approach helps us mitigate risks that often slow down renewable energy projects. By strengthening collaboration and building resilient supply chains, we ensure that our projects are delivered on time and create lasting value for all stakeholders.

With increasing competition and policy changes, what market opportunities do you see for domestic solar PV developers in India?

Opportunities are expanding on multiple fronts. Rooftop solar is expected to grow rapidly, with the Pradhan Mantri Surya Ghar Muft Bijli Yojana projected to double installations to more than four million households by 2026. Hybrid solar and battery storage projects are gaining momentum as utilities and corporate buyers increasingly seek round-the-clock renewable power.

On the manufacturing side, India’s solar module capacity has risen from about 38 GW to nearly 74 GW in FY 2024–25. With the mandate for locally made solar cells taking effect from June 2026, domestic manufacturing will play an even larger role. A recent draft notification by the Central government on the use of locally manufactured ingots and wafers, effective from June 2028 onwards, is another step towards self-sustainability. This approach will help build a resilient economy while advancing the country’s climate goals.

How are you leveraging innovation, partnerships, or financing for India’s renewable sector?

Green bonds and sustainability-linked loans are bringing more international capital into India’s renewable energy sector and improving access to funds at competitive rates. These instruments not only provide cheaper financing but also signal strong investor confidence in India’s clean energy transition. Moreover, the recent GST reduction on renewables has further lowered project costs, making clean energy investments more attractive.

At the same time, Power Purchase Agreements (PPAs) are becoming more innovative in structure and scope. Longer-term contracts that recognize the value of peak-hour supply, along with corporate PPAs that cater directly to business customers, are becoming increasingly common. Such mechanisms are helping developers secure predictable cash flows while meeting the rising demand for reliable green power. Storage-linked PPAs, in particular, reflect a trend toward agreements that reward reliability as well as capacity.

How important is collaboration with utilities for scaling solar projects, and what trends are you observing?

Utilities and state agencies play a central role in enabling PPAs, land access and timely grid integration. Technology partners contribute expertise in storage solutions, smart inverters and digital monitoring systems that make renewable power more reliable. A clear trend is the rise of multi-stakeholder projects that bring together government, private developers, financiers and technology providers.