Unlocking India’s Energy Future: The Opportunity Beneath the Surface

In an era of disruptive technologies, uncertain global developments, changing trade dynamics, and rapid climate change impact, energy security has become a defining national priority. Over the past decade, evolving Government policies have admirably moved towards meeting the energy demand while transitioning to clean energy pathways, shaping the future of energy for India.

Developing India will Demand More Energy

Our total installed generation capacity in India has reached 417 GW, with renewables contributing 41%, including a 16% share from solar. Taking a multilateral approach of diversifying the energy mix opens multiple channels for powering the economy. In the times to come, India is bound to face a huge demand for energy.

Growing at 9% since FY2021 and projected to surpass 708 GW by 2047, electricity demand will continue to surge for the next few decades. While our growth in renewable energy is impressive, there’s a huge opportunity before us. The answer lies in capitalizing on untapped opportunities and in optimizing renewable energy usage.

The Untapped Opportunities

Take residential rooftop solar, for example. India has an estimated 637 GW of potential in this segment. Tapping into just one-third of that could power the entire residential sector. India is making progress in tapping solar power with dedicated policies and initiatives like PM Surya Ghar Muft Bijli Yojana and PM-KUSUM. While the annual capacity additions for RE averaged around 16GW in the last three years, solar accounted for 80% of new capacity additions. However, there are still serious gaps to bridge and work to be done. In the “Solar Spectrum of India” survey conducted last year, we found a promising outlook for solar adoption, especially in non-metro cities and rural areas. However, people highlighted several barriers to slow widespread adoption. A significant 45% of respondents cited the unavailability of skilled local labour, while 59% were deterred by high installation costs, and 37% questioned system reliability. Broader challenges such as grid integration issues, administrative hurdles, and general lack of awareness further compound the gap between interest and implementation.

The expansion of renewable energy also brings with it the challenge of variability. A modern, resilient grid is essential to ensure consistent, round-the-clock power. Energy Storage Systems (ESS) and Battery Energy Storage Solutions (BESS) are critical enablers of this future. Investments in next-generation inverter technology, storage innovation, and grid modernization will be key to managing fluctuations and unlocking the full potential of renewable sources.

Building a Robust Solar Ecosystem

Along with infrastructure creation, the focus must also include ecosystem activation. That means ensuring the benefits of clean energy reach every household, every enterprise, and every corner of the country. For example, with regards to solar, the real opportunity lies in driving widespread adoption through localized solar financing models, community-led skilling programs, and greater public awareness.

At Luminous, our commitment to invest in innovation in offering end-to-end solar solutions, support last-mile solar skilling, and work with communities to promote sustainable energy practices has only been strengthening. We remain motivated towards building technology, green financing, and social impact collaborations to bring about innovation and transformative change in India.

The private sector has the power and resources to be a much stronger catalyst for change than what it is today. I sincerely hope more hands will join to drive the change because the future of energy will be shaped not just by how much we generate, but by how inclusively and intelligently we activate the opportunities before us.