India's solar capacity expansion has been driven by a combination of demand-side and supply-side interventions. Elaborate with reference to PM Surya Ghar, PM-KUSUM, and the PLI Scheme.

Q. India's solar capacity expansion has been driven by a combination of demand-side and supply-side interventions. Elaborate with reference to PM Surya Ghar, PM-KUSUM, and the PLI Scheme. (15 marks, 250-350 words)

India's installed solar capacity has grown nearly 50-fold, from about 3 GW in 2014 to 162.15 GW by June 2026, making solar the largest component of the 283.46 GW non-fossil fleet [1][2]. This scale-up rests on a two-track policy design: demand-side schemes that create assured consumers of solar power, and supply-side incentives that build domestic manufacturing capacity.

Demand-side interventions: creating decentralised demand - PM Surya Ghar: Muft Bijli Yojana (launched 13 February 2024, outlay ₹75,021 crore) targets rooftop solar in one crore households with 300 free units monthly; about 43 lakh households were solarised by June 2026 [1][3]. It converts households into prosumers, deepening rooftop capacity to 25.73 GW. - PM-KUSUM (2019) solarises agriculture with ₹34,422 crore support — 11.49 lakh off-grid pumps installed, benefiting 21.77 lakh farmers [1]. It cuts discom subsidy burden and diesel dependence simultaneously. - Renewable Purchase Obligations, notified up to 2029-30 (35.95% for 2026-27), make demand statutorily binding on discoms [1].

Supply-side interventions: building manufacturing depth - The PLI Scheme for High-Efficiency Solar PV Modules (2021, ₹24,000 crore) lifted module manufacturing capacity from 2.3 GW in 2014 to 172 GW, attracting roughly ₹35,000 crore in investment [1]. - ALMM (2019) assures module quality and shields domestic producers, while 54 solar parks of 39,188 MW supply land and evacuation infrastructure [1].

Convergence and outcomes Falling tariffs — from ₹18/unit in 2010 to ₹2.44/unit at Bhadla — reflect both tracks working together [1]. FY 2025-26 saw a record 44.61 GW of solar addition, and renewables met 51.5% of demand on a single day in July 2025 [1][2]. The newly approved PM Surya Sarovar Yojana (₹5,070 crore, 5,000 MW floating solar with storage) extends this logic to land-scarce siting [1].

Thus demand creation and manufacturing capability have reinforced each other, converting policy intent into installed megawatts. Sustaining this requires storage integration, discom financial health and grid modernisation, so that the 500 GW non-fossil goal for 2030 and the Panchamrit net-zero-by-2070 commitment rest on a genuinely self-reliant solar base [2].

(~330 words)

Sources: 1. India's Solar Growth Enters a New Era, PIB (2 August 2026) — capacity growth, PM Surya Ghar/PM-KUSUM progress, PLI and ALMM, solar parks, tariffs, PM-SSY 2. India Ranks third globally in Renewable Energy Installed Capacity: Shri Pralhad Joshi, PIB — 283.46 GW non-fossil capacity, renewables meeting 51.5% of demand, national targets 3. Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in One Crore households, PIB — ₹75,021 crore outlay, one crore household target