The sustainability challenge facing India’s solar-energy ambitions

India recently surpassed 100GW in installed solar power capacity, a milestone that cements its position as a global leader in solar energy. In the last decade, India’s solar power capacity has multiplied by 35-fold- from 2.82GW in 2014 to 100GW in 2025.

Under the Paris Agreement of 2015, India’s NDCs (Nationally Determined Contributions) include generating 500GW of energy from non-fossil fuels by 2030. To achieve this target, India relies heavily on solar energy. Currently, solar energy accounts for 47% of the total installed renewable energy capacity.

The central government initiatives have catapulted India’s energy transition towards achieving its net-zero targets. However, sustainability- not scalability- emerges as the next major challenge.

Solar energy is seen as one of the most feasible sources of renewable power generation. This is because the sun is more reliable than wind, generates minimal hazardous waste as compared to nuclear power plants, and leads to much less displacement of communities and destruction of biodiversity as faced by hydropower projects.

However, no form of energy generation is free from risks. Solar energy generation comes with its fair share of environmental, social and health challenges.

A health and environmental hazard

According to a study by the Ministry of New and Renewable Energy (MNRE) and The Council on Energy, Environment and Water (CEEW), the amount of solar waste generated by India would be 600 kilotonnes (Kt) by 2030, a six-fold increase from 100 Kt in 2022-23.

Solar panels contain heavy metals such as lead and cadmium telluride. Leaching of these metals from broken panels poses enormous health risks in addition to environmental hazards. A report by the United Nations Industrial Development Organisation highlights the threat posed by ‘potentially dangerous materials, including silicon tetrachloride, selenium, sulfur hexafluoride, which is a potent greenhouse gas, and cadmium, which can mutate the DNA’.

In an alarming incident, discarded solar panels installed under the PM Kusum Yojana in Uttar Pradesh were reportedly buried or sent to landfills, negatively impacting the soil. Last December, the National Green Tribunal sought a response from the central government last December on the improper disposal of photovoltaic solar panel waste.

In addition to the heavy metals, toxic gases and greenhouse gas emissions are the main emissions observed during the lifecycle of commercial PV technologies, as underlined by a study published by the Massachusetts Institute of Technology (MIT). The study also points out that mining and smelting processes undertaken to obtain resources for the industry generate heavy metal emissions in the form of particulate matter.

A social challenge

These health and environmental risks add to the woes of communities displaced due to large solar power plant projects. Several areas of Rajasthan, including Jaisalmer, have witnessed land conflicts due to the expansion of such projects. Communities dependent on cattle have been the most vocal against the destruction of Orans (traditional grazing fields) and vegetation such as the Khejri trees.

A Supreme Court of India order in 2024 directed that the core habitat areas of the Great Indian Bustard should be left undisturbed while setting up transmission lines for solar power generated in Rajasthan and Gujarat. The social and ecological impact of solar power generation thus is a cause for concern.

An economic concern

The sustainability problem of solar energy is further exacerbated by the fact that global warming-led rising temperature will degrade the panels faster, which in turn would undermine their longevity, adding to production costs.

The longevity of components already takes priority over ease of recycling. The panels are designed to last over 20 years. The silicon present in glass panels for this purpose has a higher melting point than glass, and hence, is difficult to melt down. When the glass is melted to recycle it, the end product contains black impurities and is not considered suitable for further use.

Thus, the solar energy sector of India appears to face the dual test of sustainability and scalability.

Hurdles to expansion

According to the Economic Survey 2024-25, low production capacity for key components like polysilicon, ingots and wafers makes the industry highly dependent on Chinese imports. It makes the domestic manufacturing sector susceptible to shocks in case of supply chain disruptions, price fluctuations and currency risks.

The Economic Survey 2024-25 also highlights the friction between energy transition and energy security, as seen in developed countries. One of the major hurdles in a smooth energy transition is grid congestion which has led to higher costs, consequently curtailing non-fossil energy generation.

Road ahead

The Survey suggests a way forward to manage the economic concerns surrounding solar energy generation. It proposes going all out to attract, promote and facilitate domestic and foreign investments to strengthen domestic supply-chain capability and resilience. At the same time, exploring alternative sources of supply will foster production in the short run.

Increased investment would also pave the way for the development and procurement of cleaner technologies for the procurement of raw materials required by the industry. It could also boost raising collection and recycling infrastructure for PV solar panels, including promoting innovation and formalising waste-picking labour, complemented by policy initiatives.

As the government pushes for rooftop solar panels on residential and commercial buildings, an upskilled workforce to provide repair and maintenance could enhance the efficiency of the equipment, while reducing the discarded waste.

Shifting gears within schemes like MGNREGA by transitioning from unskilled to semi-skilled and skilled labour opportunities, and integrating them with the solar energy sector might check two boxes at once.

The Environmental Impact Assessment is a tool that, if employed timely and consistently, could facilitate in-depth analysis of social, environmental and economic risks associated with such projects, paving a greener way for India to become a net-zero economy by 2070.