highlight:
- According to Union Minister RK Singh’s data on solar PV investments received by India in the last three years, i.e. from 2020 to September 2023, India’s solar PV sector will grow by 30% in the country by September 30, 2023. It was revealed that 860,158,000 investments have been received.
Singapore, UK, Mauritius, UAE India’s largest solar investor: RK Singh
RK Singh, Union Minister for New and Renewable Energy, shared details of solar power investments received by India in the last three years, i.e. from 2020 to September 2023. He said, “India’s solar power sector has received 3860,158,000 investments through foreign direct investment.” Foreign investment (FDI) is prohibited until September 30, 2023. ” India has DTAA or Double Taxation Avoidance Treaties with all these countries, allowing higher-value investments from there.
He also said, “Solar power plants are being installed in the country with domestic as well as foreign investments. Through the automatic route for setting up renewable energy projects, including solar energy projects, in the country, maximum 100 percent Foreign Direct Investment (FDI) is allowed. Country-wise details of Foreign Direct Investment (FDI) capital inflows received in the solar energy sector in the last three financial years and the current financial year (up to September 2023)
His written response to Parliament revealed data on the top three states that received the most FDI in 2023.
Top 3 FDI in India’s renewable energy sector in 2023
The minister shared data on the 27 countries that are the largest source of solar foreign direct investment (FDI) in the domestic solar power sector. Overall, 27 countries said he has provided investments of 3,860,158 million to India. Based on the data shared by the Minister in his written response, the top four countries comprising the largest source of investment have been identified: Singapore – 780.781, United Kingdom (UK) – 778.271, Mauritius – 632,523, UAE – 543.235.
Among the total 27 countries, the countries with the lowest FDI sources in India’s solar power sector are Sweden – 0.478, Seychelles – 0.075, Germany – 0.777, Cyprus – 0.450, Czech Republic – 0.880 and Bulgaria – 0.006.
The government has taken several steps to promote solar energy in the country. This includes, inter alia, the following measures:
• Exemption from Interstate Transmission System (ISTS) fees for interstate sales of solar and wind power for projects commissioned by June 30, 2025;
• Declaring a trajectory for renewable energy purchase obligations (RPO) by 2030 • Establishment of ultra-mega renewable energy parks to provide land and transmission to renewable energy developers on a plug-and-play basis
• Schemes like Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, Production Linked Incentive (PLI) Scheme for High Efficiency Photovoltaic Modules
• Laying new transmission lines and creating new substation capacity under the Green Energy Corridor Plan for solar power evacuation.
• Notification of standards for installation of photovoltaic systems/equipment • Establishment of project development cell to attract and promote investments.
• Standard bidding guidelines for rate-based competitive bidding and bidding routes for power procurement from grid-connected solar PV projects.
• The government has issued orders to dispatch electricity on the basis of letters of credit (LC) or prepayments to ensure timely payments to renewable energy generators by distribution licensees.
• Implementation of skills development programs to ensure skilled manpower to set up, operate and maintain solar energy projects.