Jharkhand, a state deeply entrenched in India’s coal belt with the highest concentration of coal districts (18), is embarking on a significant pivot towards renewable energy, setting an ambitious target of developing 4 gigawatts (GW) of solar energy infrastructure by 2027.
This strategic shift acknowledges the complex yet essential need for states heavily reliant on fossil fuels to transition towards cleaner energy sources, particularly given the imperative for a zero net carbon future. With a substantial portion of its revenue derived from coal-related activities, Jharkhand’s commitment signals a bold step towards diversifying its energy portfolio and embracing a more sustainable economic trajectory. A cornerstone of Jharkhand’s solar energy development plan is the creation of 1,000 ‘solar villages’ across the state. These envisioned communities will primarily rely on solar power to meet their energy demands, with an anticipated cumulative generation capacity of 400 megawatts (MW) from these decentralised installations. The estimated financial outlay for this transformative project is ₹3,000 crore, with a projected subsidy of ₹1,200 crore expected to be leveraged from the central government’s PM Suryagarh Muft Bijli Yojana. This central scheme, launched in February 2024, aims to provide free electricity (up to 300 units per month) to one crore households nationwide by facilitating the installation of rooftop solar panels, with a substantial budgetary allocation of ₹75,021 crore until FY 2026-27.
The PM Surya Ghar Muft Bijli Yojana offers significant financial incentives, covering 40% of the solar panel installation cost for eligible households. This translates to potential annual savings of up to ₹18,000 on electricity bills for participating households, while simultaneously contributing to a reduction in the government’s overall electricity expenditure, estimated at ₹75,000 crore annually. The scheme prioritises Indian citizens who own a house with a suitable rooftop for solar panel installation and possess a valid electricity connection, provided they have not previously availed similar solar subsidies. Distribution Companies (DISCOMs) play a crucial role as State Implementation Agencies (SIAs), overseeing the installation process, ensuring the availability of net meters, conducting necessary inspections, and commissioning the rooftop systems. To incentivise active participation, the scheme includes a ₹4,950 crore allocation for DISCOMs based on the additional solar capacity they facilitate. Beyond the ambitious solar village initiative, Jharkhand is also strategically focusing on the deployment of solar-powered mini grids to enhance energy access in rural and potentially remote areas. To date, 237 villages have been electrified through solar mini grids, benefiting over 12,406 households. An additional 246 villages have received support through central government assistance, resulting in a total installed capacity of 5.47 MW and 3.6 MW respectively from these decentralised grids. This approach not only extends the reach of electricity to underserved communities but also does so through a clean and sustainable energy source, promoting equitable energy access.
To further stimulate growth in the solar energy sector and encourage the participation of smaller developers, Jharkhand has implemented a fixed feed-in tariff (FiT) strategy for solar projects up to 10 MW. This policy aims to create a level playing field, enabling smaller entities to compete effectively with larger projects in the burgeoning solar market. The state anticipates adding a significant 1,000 MW of solar capacity within the next five years through this initiative, fostering a more diverse and competitive solar energy landscape. Jharkhand’s multi-pronged approach to solar energy development signifies a strong commitment to transitioning towards a more sustainable and equitable energy future. By simultaneously focusing on large-scale grid-connected projects, decentralised solar villages, rural electrification through mini grids, and incentivising smaller developers, the state is laying the foundation for a cleaner energy mix, reduced reliance on coal, and enhanced energy access for all its citizens. This ambitious undertaking holds the potential to not only mitigate environmental impact but also to stimulate local economies, create green jobs, and foster a more resilient and sustainable energy ecosystem for Jharkhand.
The success of these initiatives will serve as a crucial case study for other coal-dependent states navigating the complexities of the global energy transition.
Also Read: Green Mobility Gains Momentum in Mumbai
