The future of India’s green economy can be shaped not just by innovation but by inclusion – finance makes solar affordable while policy makes it accessible. Together they have the power to transform sunlight into a source of economic security, energy independence, and climate resilience, writes Swapnil Wakade, Business Head – Residential Rooftop Solar, Ecofy.
While India’s solar revolution is making waves, it still needs to scale faster and deeper to meet the climate goals of the country. While 23 percent of Indians have access to solar, the goal is to increase this over 1.5 times to 500+ GW by 2030.
The real question that comes to mind is how can solar energy be made accessible to all and not just driven by investment. Here’s where finance and policy step in as powerful enablers which have the ability to close the gaps between potential and progress.
Solar: The Smart and Long-Term Investment
Solar Power is a strategic investment and not just a green alternative. Once installed, solar panels can provide minimal electricity bills for over 25 years, saving businesses and homeowners from rising power tariffs.
Solar installations also support the UNSDG goals by reducing dependency on fossil fuels, thereby making the dream of a net-zero emissions future a reality. Despite its long-term benefits, the upfront cost remains a roadblock for many.
Finance: Facilitating Affordable Solar
The primary reason why people hesitate to install solar is the high capital investment it demands. But with the help of green financing, one can make this process cheaper and easily doable. There are green financiers, who, unlike traditional loan providers, require minimal or zero collateral, offer quick approvals, spread payments over manageable EMIs, and have loans can also be paired with government subsidies and incentives.
Policy: Proving An Enabling Ecosystem
India’s climate goals require strong policy support; and government schemes are the best bet. Schemes like PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar in 1 crore homes and as per the Ministry of New and Renewable Energy, this could add 30 GW of capacity and save households INR 15,000-18,000 annually. Additionally, the Commercial & Industrial Rooftop Solar sector benefits from lower commercial tariffs and power purchase agreements (PPAs).
Even time-bound subsidies are useful as they create an urgency and when combined with financing. This cuts the payback period to 3–4 years and makes solar installations a smarter and a more economical choice. These policies also drive last-mile awareness, simplify regulations, and help enable vendor training which is crucial to reach underserved communities.
Creating Awareness to Reach the Last Mile
Consumer awareness about set-up cost, long-term savings, government schemes, green financiers, and how easy it is to get started is key when it comes to driving solar adoption. If not, even the best financial products and subsidies offered by the government will fall short.
People need to know that solar is not as expensive as they might think it is. Much like the government’s work in areas like LPG or digital banking, awareness campaigns and ground-level agents can play a huge role in pushing solar to the masses. Even finance providers have a role to play here as they must step in with education through local partnerships, community demos, and multilingual content that explains the ease of going solar.
Unlocking A Green Economy for the Future
If we talk about a country’s growth, then solar isn’t just about sustainability; it’s a key pillar of a green economy. As adoption grows, so do jobs in installation, manufacturing, servicing, and financing. MSMEs that opt for solar can reduce their operational costs and improve competitiveness. Farmers using solar-powered pumps can conserve water and cut fuel costs. Even schools, hospitals, and local enterprises can gain reliable power. But all of this is only possible with the help of finance and the right policy push.
Conclusion: Brightening India’s Tomorrow
The future of India’s green economy can be shaped not just by innovation but by inclusion – finance makes solar affordable while policy makes it accessible. Together they have the power to transform sunlight into a source of economic security, energy independence, and climate resilience.
As the nation moves towards its net-zero targets, ensuring every citizen has the tools to participate in the clean energy transition isn’t just an environmental imperative; it’s an economic one.