From Ambition to Action: Uttar Pradesh’s Solar Energy Transformation

Uttar Pradesh, with the largest population among Indian states and one of the highest electricity demands, is now poised to harness its vast untapped solar potential to meet its energy needs while contributing to the nation's energy transition goals.

As one of India's most ambitious states in pursuing renewable energy (RE) targets, Uttar Pradesh has implemented several forward-thinking policies, including the Solar Energy Policy 2022 and the UP Green Hydrogen Policy 2024, to drive its renewable energy agenda. Solar power is a cornerstone of the state's RE strategy, with ongoing initiatives like solar cities, solar parks, grid-connected and off-grid projects, and green corridors. One of the key advantages of solar energy is its scalability, enabling generation at the household and village levels.

Uttar Pradesh has set an ambitious target to generate 22,000 MW of electricity from solar energy by 2026-27. This would mean adding over 14 MW of solar capacity everyday. To achieve this, the state has introduced various policy measures aimed at accelerating solar energy development. Reinforcing its commitment to clean energy, the UP government secured investments worth INR 7.5 lakh crore in the renewable energy sector at the Global Investor Summit held in February 2023, with a significant portion earmarked for solar and other clean energy projects under the ‘Akshay Urja’ Scheme. These recent developments have set Uttar Pradesh on a path of accelerated renewable growth.

A Bleak Rural Scene

The rooftop solar (RTS) program and Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM-KUSUM Yojana) were designed to bring solar energy to every home and farm, turning everyday citizens into solar entrepreneurs and creating jobs. However, the situation in Uttar Pradesh’s rural regions paints a bleak picture. Despite these well-intentioned schemes, there has been a noticeable lack of enthusiasm for solar energy in small towns and villages across the state.

While cities like Allahabad, Varanasi, and Lucknow see some interest in RTS, smaller districts suffer from frequent power cuts, and residents show little to no interest in adopting solar technology. By the end of 2022, only 163 MW of RTS capacity had been installed across all sectors, including residential and commercial—an underwhelming figure given the potential of the program.

One significant barrier has been the upfront cost of RTS, which is challenging for lower- and middle-class families. The high price of fertile land in UP further disincentivizes farmers, especially when the electricity rates they currently pay seem more manageable in comparison.

The central government’s PM-KUSUM scheme has also seen disappointing results in UP. For instance, in PM KUSUM Yojana-A, where 225 MW plants were approved for 2022-23, not a single one materialised. Similarly, in KUSUM-B, only 12,773 solar pumps were installed out of the 36,842 sanctioned, and KUSUM-C saw no installations at all compared to the targeted 400,000 pumps.

In response to these shortcomings, the government modified the scheme, introducing KUSUM-C2 with increased subsidies— INR 1 crore from the central government and INR 50 lakh per MW from the state. Alongside these efforts, the state government is also pushing for more widespread adoption of rooftop solar panels in residential buildings, promoting solar-powered electricity for agricultural farms. Under the PM Surya Ghar Yojana, that includes rural and urban households, 25 lakh houses will receive solar plants, providing 300 units of free electricity to residents.

Recognizing the need for practical and accessible solar energy goals, the state government is also focusing on technical training. Over the next five years, 30,000 youth will be trained as Surya Mitras at UPNEDA training centres to support the successful implementation of these solar initiatives.

Illuminating the Urban Future: UP’s Strategic Solar Surge

Uttar Pradesh is taking decisive steps to bolster its solar energy sector, with a particular focus on urban regions where adoption trends are increasingly positive. According to UPNEDA Director Anupam Shukla, the state is concentrating its efforts on larger cities, municipal corporations, and the upper-middle class. This focus is partly due to the structure of the rooftop solar (RTS) subsidy scheme, where payments are made upfront, and subsidies are reimbursed later. As a result, the state is targeting areas where the financial capability to invest in solar energy is higher.

One of the state’s flagship initiatives is the creation of a Green Energy Corridor in the Bundelkhand region, designed to facilitate the evacuation of 4,000 MW of power. This is complemented by the development of dedicated solar parks with plug-and-play infrastructure, aimed at attracting investments and promoting solar energy for industrial captive consumption.

The state’s ambitious solar cities concept is also part of this push, with an energy transition action plan being rolled out for 18 cities, starting with Ayodhya. Under the Saurya Uttar Pradesh Yojna, the government is providing subsidies to encourage rooftop solar installations in the private residential sector. 

These efforts have already borne fruit, with a total of 4,130 MW of solar projects, including rooftop solar plants, being commissioned across the state. Among these, three solar parks with a combined capacity of 435 MW are already operational, and the remaining six parks, totaling 3,275 MW, are in various stages of development. The land for all nine parks has been allocated, and the bidding process is progressing smoothly.

The solar parks are strategically located in cities such as Jhansi, Lalitpur, Chitrakoot, Jalaun, Kanpur Nagar, Kanpur Dehat, Mirzapur, and Prayagraj. The projects have attracted significant investments, underscoring the state’s commitment to solar energy. Notably, the parks under construction in Bundelkhand, Kanpur Nagar, and Kanpur Dehat are poised to further enhance the state’s solar capacity.

In a bid to reduce air pollution and offset emissions, the state has also begun integrating solar with the transportation sector. The state has launched solar-powered ferry rides and has unveiled plans to install solar panels on the entire 296 km stretch of Bundelkhand Expressway.

With a target to generate 22,000 MW of electricity from solar energy by 2026-27, Uttar Pradesh’s strategy includes the installation of 6,000 MW of rooftop solar plants on private and government buildings and the establishment of 14,000 MW of solar utility projects and solar parks. Additionally, under the PM-KUSUM Yojana, over 16 MW of grid-connected tube wells are now powered by solar energy, reflecting the state’s broad commitment to transitioning to clean, renewable energy sources.

BESS to Become a Game Changer

The unpredictability and fluctuations—both seasonal and diurnal—in renewable energy sources have long hindered the sector's global progress. However, the advent of advanced battery energy storage systems (BESS) is addressing these challenges, making renewable energy more reliable. Uttar Pradesh is actively developing in this area as part of its broader energy transition efforts. The Uttar Pradesh Power Corporation Ltd. (UPPCL) is also advancing pumped hydro storage projects in the Vindhyachal region.

A study by the Central Electricity Authority of India (CEA) projects the addition of 8,680 MW/34,720 MWh of battery energy storage capacity (4-hour storage) to the installed capacity for 2022-27, alongside 7,446 MW of pumped hydro storage. Under the UPNEDA Solar Policy 2022, the state offers a capital subsidy of INR 2.50 crore per megawatt for utility-scale solar projects that include a 4-hour battery storage system of 5 MW or more, as well as standalone battery storage systems powered by solar energy for sale to distribution licensees or UPPCL.

Recently, UPPCL invited bids from developers to establish a standalone BESS with a storage capacity of 1,200 MWh (300 MW x 4 hours) in Uttar Pradesh. The selected developer will provide the energy storage facility to UPPCL for charging and discharging on a demand basis, as needed during peak and off-peak hours. The BESS can be charged from any energy source, including conventional ones.

The state of Uttar Pradesh possesses immense solar potential, estimated to be over 22 GWp, yet only about 10 percent of this potential has been harnessed so far. While the recent push for solar energy is encouraging, the true impact will depend on the effective implementation of the policies and initiatives in place. The success of these efforts will ultimately determine how much of this vast potential is realised. To achieve comprehensive solar growth, it is crucial to address the underlying challenges, particularly in rural regions, where cost barriers and lack of awareness continue to hinder progress. A balanced focus on both urban and rural areas, coupled with sustained efforts in education and financial accessibility, will be key to unlocking the full solar capacity of the state.