When it comes to the renewable energy sector in the country, it is evident that it is thriving. This, in turn, presents significant opportunities for many SMEs in the country. It can enable them to cut their operational costs as well as accelerate their sustainability journey.
India's Renewable Energy Surge
According to the Ministry of New and Renewable Energy, in India, as of January 2025, the country’s total renewable energy capacity is 217.62 GW. This figure is monumental as it marks quite a substantial increase from the data of previous years. In this, solar energy leads with 24.5 GW added in 2024. This brings the total solar capacity to 97.86 GW. Wind energy also witnessed an increase of 3.4 GW, with the total reaching 48.16 GW. The government of India has set a target of achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, states the Ministry of Power.
How will SMEs benefit from this?
When it comes to the country’s GDP, the contribution of SMEs cannot be overlooked. They account for almost 30 percent and also account for a significant portion of industrial energy consumption. Therefore, these businesses can benefit immensely from this renewable energy boom.
When it comes to operational costs for these small to medium businesses, energy expenses constitute a considerable share. The adoption of renewable energy sources, especially rooftop solar panels can result in significant cost savings for these businesses. Solar energy generating patterns often work well when it comes to SMEs as they operate during daylight hours. This, in turn, reduces their need for energy storage solutions, and can further lower their costs.
With the frequent power outages in many places in the country, SMEs are forced to rely on diesel generators. Not only does this result in increased operational expenses, but also impact the environment. However, the integration of renewable energy solutions can help these businesses mitigate these issues. This will help to ensure a more stable and sustainable power supply.
Government Initiatives advocating the use of renewable energy sources
While adopting renewable energy sources can help accelerate the Net-Zero journey of many SMEs, the Indian government, too, has launched several initiatives to promote renewable energy adoption.
PM Surya Ghar: Muft Bijli Yojana: In this scheme, one crore households will have rooftop solar systems. This would provide upto 300 units of free electricity in a month.
Policy Support: The Ministry of New and Renewable Energy (MNRE) has executed policies that promote green hydrogen, scale up domestic manufacturing for solar PV and wind turbines, and improve grid infrastructure, facilitating easier integration of renewable energy sources for SMEs.
Therefore, we see that India's renewable energy sector is growing rapidly and this, in turn, presents a strategic opportunity for SMEs to move towards a more sustainable and cost-effective energy solution. SMEs can increase their competitiveness and contribute to India's broader environmental goals by making use of government initiatives and aligning operational practices with renewable energy adoption. “With platforms like Fitsol’s Kyoto™, SMEs can measure their energy footprint and take actionable steps towards renewable adoption.
Citations
Ministry of New and Renewable Energy: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2094992#:~:text=As%20on%2020th%20Jan,wind%20installations%20compared%20to%202023 .
Ministry of Power: https://powermin.gov.in/en/content/500gw-nonfossil-fuel-target