The Energy and Resources Institute (TERI) has released a new policy brief outlining measures to accelerate the adoption of solar thermal technologies for industrial decarbonization, recommending the launch of a National Solar Thermal Mission to reduce fossil fuel dependence and support India’s transition to a low-carbon industrial economy.
The policy brief was unveiled during a hybrid event held at TERI’s headquarters in New Delhi, bringing together policymakers, industry representatives, researchers, and clean energy experts to discuss strategies for mainstreaming solar thermal technologies across industrial applications.
Addressing the gathering, Dr. Vibha Dhawan, Director General of TERI, said India’s journey towards net-zero emissions will require empowering small and medium enterprises (SMEs) by addressing financial and technological barriers through affordable financing, demonstration projects, and market-driven environmental, social and governance (ESG) incentives for clean process heat.
The study was presented by Ajay Shankar, Distinguished Fellow at TERI, along with Urvashi Singh, Research Associate, and Dr. N.K. Ram, Senior Fellow, who outlined the report’s key findings and policy recommendations.
Among its principal recommendations, the policy brief calls for the establishment of a National Solar Thermal Mission supported by dedicated institutional mechanisms, long-term financing, fiscal incentives, and an enabling policy framework to accelerate industrial deployment of solar thermal technologies.
The report also recommends improving access to affordable finance through fixed-interest loans with repayment periods of up to 15 years, a 5% GST rate, and accelerated depreciation benefits while avoiding direct subsidies to encourage market-driven cost reductions.
To facilitate early-stage deployment, TERI proposes creating a Mission-led Special Purpose Vehicle (SPV) to implement pilot projects, undertake back-to-back contracting for industrial process heat supply, assume initial project risks through contingent liability, and catalyse private sector participation until the market matures.
The policy brief further recommends strengthening industry awareness, enhancing technical capabilities, promoting research and development, and encouraging the integration of solar thermal systems in new industrial facilities.
As part of its phased implementation strategy, TERI suggests launching pilot projects in industrial parks serving sectors such as food processing, textiles, dairy, and pharmaceuticals, supported by shared solar thermal infrastructure, risk-sharing mechanisms, and collaboration with industrial park developers. Following successful demonstrations, the report recommends scaling deployment by retrofitting existing industrial facilities through concessional financing, tax incentives, and phased regulatory measures.
Discussions during the event focused on policy support, financing models, technology adoption, and industry readiness required to scale solar thermal solutions across India’s industrial sector.
Concluding the event, A.K. Saxena, Senior Director at TERI, emphasised the importance of collaboration among government agencies, industry, research institutions, and financial stakeholders to accelerate industrial decarbonization and expand the deployment of clean thermal energy technologies.
According to TERI, the policy brief is intended to support ongoing policy discussions and provide actionable recommendations for advancing industrial decarbonization through wider adoption of solar thermal energy in India.
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