India targets US$1 trillion energy transformation with solar rooftops and green investments

The PM Surya Ghar scheme, a central plank in the government’s strategy on universal access to power with an allocation of INR 75,000 crore, seeks to install solar rooftops on one crore households, catalysing India’s shift toward sustainable energy. A senior official close to implementing the scheme described PM Surya Ghar as more than a scheme, calling it a monumental effort to secure India’s cleaner, more resilient energy future. Riding on the wave of significant demand response from consumers—with over 13 lakh applications received within just a few months—the ministry has acted swiftly to resolve the teething issues related to technology for smooth functioning of the platform, mobilisation of funds, and boosting equipment availability. As a result, more than 2.5 lakh installations have already been completed. With this initial surge in success, officials are optimistic about completing the targeted installations ahead of schedule.

At its core, the PM Surya Ghar Scheme is designed to provide substantial economic relief to households nationwide. By offering subsidies ranging from INR30,000 to INR78,000 based on electricity consumption levels, the government aims to make solar power accessible to a broader demographic. For instance, households consuming up to 150 units of electricity could receive up to INR 60,000 to support installing 1-2 kW solar systems. Those with higher consumption could receive subsidies for systems capable of generating over 3 kW, substantially offsetting their energy costs.

The initiative has already seen considerable uptake, with 2 lakh installations completed and 13.8 lakh applications received. Such numbers demonstrate the scheme’s popularity and underscore the vast potential for solar energy in India. To reach its one crore target, the Ministry of New and Renewable Energy (MNRE) is intensifying its Information, Education, and Communication (IEC) campaigns, reaching out to potential applicants and raising awareness about the benefits of solar energy. Officials emphasise the need for ongoing efforts, noting that a lot of effort is required to reach the one crore mark, which includes continuous monitoring, coordination, and more.

One of the scheme’s strategic advantages is India’s robust solar module manufacturing capacity. With 58 GW of capacity and only 30 GW required for the scheme, India is well-positioned to meet its own needs while potentially serving global markets. This surplus capacity ensures that the PM Surya Ghar scheme can proceed without the delays typically associated with supply shortages. The scheme also aligns with broader governmental goals. By December 2025, all central and state government buildings are expected to have rooftop solar systems installed under the PM Surya Ghar: Muft Bijli Yojana. This underscores the government’s commitment to renewable energy and sets a precedent for energy efficiency and sustainability in public infrastructure.

Beyond immediate economic benefits, the PM Surya Ghar Scheme is a significant stride towards reducing carbon emissions. As India positions itself as a leader in renewable energy, the environmental benefits of such a massive shift to solar power—decreased reliance on fossil fuels, reduced air pollution, and contribution to global climate goals—cannot be overstated. The PM Surya Ghar Scheme is more than just an energy policy; it is a visionary step towards redefining India’s energy future. With its comprehensive approach to tackling implementation challenges, enhancing public engagement, and leveraging domestic manufacturing, the scheme promises not only to light up homes but also to ignite a broader transformation towards sustainable and self-sufficient energy solutions. As this initiative continues to unfold, it stands as a testament to the potential of renewable energy to reshape economies and empower communities, setting a global benchmark in the fight against climate change.

Similarly ambitious is the Indian Oil Corporation (IOC), the nation’s largest oil firm, which aims to become a US$ 1 trillion company by 2047. Combining growth in traditional oil refining and fuel marketing with clean energy avenues like green hydrogen and EV charging, IOC aims to balance its portfolio to achieve net-zero carbon emissions by 2046. The company posted a record net profit of INR 39,619 crore (USD 4.7 billion) on a revenue of INR 8.66 lakh crore (USD 104.6 billion) in the 2023-24 fiscal. With India’s economy on the rise, the country’s energy needs are growing exponentially. As ‘The Energy of India’, IOC has been accelerating and expanding its capabilities. It aims to become the nation’s lead energiser, fulfilling 12.5 % (1/8th) of India’s energy needs by 2050, said IOC chairman Shrikant Madhav Vaidya.

IOC is embarking on an aspirational journey to become a ‘One Trillion Dollar Giant’ by 2047, set against India’s vision to transform into an economy of over US$ 30 trillion by 2047. The company will invest significantly in brownfield and greenfield expansions to ensure uninterrupted energy. Petrochemical integration will be a key focus area, greatly enriching its value chain. While the first phase of petrochemical expansions at Panipat in Haryana and Paradip in Odisha is complete, the one at Gujarat refinery is scheduled for commissioning in 2024-25. The firm is also setting up a polypropylene unit at Barauni refinery.

IOC is scaling up its capacity, targeting an increase to 13 million tonnes and achieving a petrochemical intensity index of 15 % by 2030. By integrating petrochemicals into its refining investments, the company is expanding its product range to include niche offerings like speciality chemicals and biopolymers. Alongside this, IOC will pursue green initiatives, including hydrogen mobility, hydrogen transportation, biofuels, electric mobility, solar cooktops, and the minimisation of water footprint. In pursuit of its vision for a greener future, IOC has resolved to consolidate its green initiatives under a single umbrella by setting up a wholly-owned subsidiary, Terra Clean Limited. Vaidya stated that this new entity will undertake low-carbon, new, clean, and green energy businesses. By putting all green initiatives under one arm, IOC aims to optimise resource allocation, enhance innovation, and implement cutting-edge solutions more efficiently.

As part of its carbon-neutral energy vision, IOC plans to establish 1 GW of renewable energy capacity with an investment of over INR 5,000 crore. This green arm will spearhead initiatives in renewable energy, ensuring that IOC remains at the forefront of the energy transition and contributes significantly to India’s ambitious renewable energy targets. The firm aims to enhance its renewable energy capacity to 31 GW by 2030 through solar and wind projects, integrating renewable power into its refinery operations, and energising fuel stations and installations with solar power. IOC has formed a joint venture with Israeli technology company Phinergy for aluminium-air batteries and with Panasonic Energy of Japan for advanced cell manufacturing of lithium-ion batteries in India.

With a vision to propel ‘Make in India’ for the world, the JV plans to establish a one GWh capacity factory by 2027, with an ambitious expansion to 5 GWh by 2031, Vaidya said on the joint venture with Panasonic. IOC also has a joint venture with Sun Mobility Pte Ltd to establish one of the largest battery-swapping networks in India by 2030. In the realm of compressed bioGas (CBG), it plans to set up 30 CBG plants nationwide this year. On hydrogen, the firm is looking to convert half of its current hydrogen consumption to green by 2030. IOC plans to set up green hydrogen plants across all refineries and propel the advent of hydrogen mobility in the country. IOC is betting on battery swapping solutions, particularly for the two and three-wheeler segment, with plans to expand this avenue for heavy-duty vehicle applications.

IOC processes over 1.6 million barrels of crude oil daily, dispenses fuel to millions through its over 37,500 petrol pumps, delivers more than 26 lakh LPG cylinders, and fuels over 2,300 flights. It operates nine refineries with a cumulative capacity to turn crude oil into fuel of 70.25 million tonnes annually and 19,700 km of cross-country pipelines. The firm added 1,260 petrol pumps in 2023-24, taking the total number to 37,472. It also operates 2,110 CNG stations and 9,059 EV charging stations, including 91 battery swapping stations.

As ‘The Energy of India’, IOC is firmly geared to meet India’s evolving energy needs, Vaidya said. Oil demand in India, the world’s third-largest energy consumer, is projected to rise from 5.4 million barrels per day (bpd) in 2023 to 9.3 million bpd by 2040. Meeting this rising demand will require progressively augmenting the country’s refining capacity from 256.8 million tonnes annually to 450 million. Additionally, the government aims to add 50 GW of renewable energy capacity annually, achieving 500 gigawatts (GW) of installed renewable capacity by 2030. As the energy needs of an ascendant India rapidly grow, IOC is fully prepared to ramp up conventional and non-conventional energy options to cater to this increasing demand, Vaidya said.

The ambitious targets set by both the PM Surya Ghar Scheme and Indian Oil Corporation reflect India’s broader vision of a sustainable and energy-secure future. The PM, Surya Ghar Scheme’s emphasis on solar rooftops aligns seamlessly with IOC’s strategic investments in renewable energy and clean technologies. By integrating solar power into residential and public buildings and investing heavily in green hydrogen, EV infrastructure, and advanced battery technologies, India is diversifying its energy mix and setting a global example in combating climate change.

Together, these initiatives highlight the critical role of governmental policies and corporate strategies in achieving India’s energy transition goals. The synergy between the PM Surya Ghar Scheme’s grassroots approach to solar energy and IOC’s extensive industrial-scale clean energy projects underscores a comprehensive national strategy. This dual approach ensures that India can sustainably meet its rising energy demands, support economic growth, and achieve significant carbon reductions.
Source: Economic Times