India is taking another step toward industrial decarbonisation by encouraging industries to replace fossil-fuel-based heating with solar thermal technology. The Ministry of New and Renewable Energy (MNRE) is offering up to 50% financial support, capped at ₹2 crore per project, for eligible industrial solar-heat initiatives.
The initiative focuses on Concentrating Solar Thermal (CST) technology, which uses sunlight to generate heat for applications such as water heating, steam generation and industrial process heating. Thermal energy storage can also allow the generated heat to be used beyond sunlight hours.
Industries including food processing, textiles, chemicals, metals, pharmaceuticals and other heat-intensive sectors could benefit from the technology. The programme aims to develop commercially viable and scalable solutions that can be integrated with existing industrial processes.
The move could help industries reduce fossil-fuel consumption, lower carbon emissions and improve energy security, while creating opportunities for startups, technology developers and entrepreneurs working on clean industrial heat solutions. Proposals under the initiative can be submitted until October 7, 2026.
