New Delhi: A rooftop solar consumer can generate electricity at a fraction of the cost of petrol. A farmer using a solar pump does not worry about diesel prices. Solar power is now being procured at just ₹2.5-2.6 per unit, cheaper than almost every conventional source of new electricity generation in the country.
Yet every time tensions escalate in West Asia, Indian households brace for higher fuel bills, costlier transport, rising food prices and inflation.
That contradiction sits at the heart of India’s energy transition.
Even as the country races towards becoming a renewable-energy superpower with over 150 GW of solar capacity and more than 280 GW of non-fossil fuel capacity, millions of consumers remain heavily dependent on imported fossil fuels for mobility, cooking, agriculture and industrial activity. The challenge for policymakers is no longer simply building solar parks. It is ensuring that ordinary consumers can afford to shift towards a renewable-powered economy.
The urgency is growing.
India imports nearly 90% of its crude oil requirement and around half of its natural gas demand. According to Dastur Energy, the country’s combined exposure to crude oil, LNG, LPG, fertiliser-linked imports and petrochemical feedstocks can exceed $200 billion annually during periods of elevated global energy prices. When crude remains near $95 per barrel, the current account deficit could move towards $85-90 billion, while oil marketing companies could face under-recoveries approaching ₹1,000 crore a day.
For consumers, these are not abstract macroeconomic numbers.
Higher crude prices eventually translate into costlier LPG cylinders, expensive logistics, higher freight charges, rising airfares and inflation in everyday essentials. Every global energy shock ultimately finds its way into household budgets.
Renewable energy is increasingly being viewed as the long-term antidote.
Over the past decade, India’s solar capacity has expanded from less than 3 GW to over 150 GW. Wind capacity has crossed 56 GW, while total non-fossil capacity now exceeds 280 GW. More importantly, renewable power tariffs have collapsed from double-digit levels a decade ago to around ₹2.5-2.6 per unit today.
The transformation is already reaching consumers.
Under the PM Surya Ghar programme, rooftop solar adoption has crossed 40 lakh households, with the government targeting one crore homes. The scheme offers subsidies of up to ₹78,000 and promises significant savings on monthly electricity bills. For many households, rooftop solar is becoming the first direct financial benefit from India’s clean-energy transition.
Similarly, the PM-KUSUM programme is reshaping rural energy consumption. Government data shows over 9.42 lakh standalone solar pumps and nearly 11 lakh solarised agricultural pumps have been deployed, reducing farmers’ dependence on diesel and lowering irrigation costs. For a farmer facing volatile diesel prices, renewable energy is no longer merely an environmental solution — it is a cost-saving tool.
The broader shift is becoming visible across the power system.
The Indian Gas Exchange (IGX), the country’s largest gas-trading platform, sold 4.5 trillion British Thermal Units (TBtu) of gas to power producers between April 1 and May 26 this year, an almost 350% jump from the corresponding period last year. The surge reflects growing electricity demand as air-conditioning, industrial activity, digital infrastructure and renewable integration accelerate.
Experts say this marks the beginning of a deeper structural transformation.
“The biggest structural shift is not simply the growth in renewable capacity. It is the recognition that India’s energy transformation cannot be measured only in gigawatts. It has to be measured by whether the electricity system remains affordable, reliable and resilient as renewables scale,” said Atanu Mukherjee, CEO of Dastur Energy.
The affordability question, however, remains unresolved.
While solar power itself has become remarkably cheap, accessing its benefits often requires upfront investment. Residential rooftop systems typically cost between ₹45,000 and ₹57,000 per kilowatt before subsidies. Battery storage remains expensive. Electric cooking appliances require new purchases. Even consumers willing to embrace renewable energy often face significant entry barriers.
This creates a paradox. Renewable energy may offer lower lifetime costs, but many households struggle with the upfront expenditure required to participate in the transition.
Researchers at TERI argue that renewable energy is increasingly becoming an economic security strategy rather than merely a climate policy.
“Renewable energy is now being viewed not only as a sustainability imperative, but also as a strategic tool to reduce exposure to global fuel price volatility and strengthen long-term industrial competitiveness,” said Ishaan Chandra Saxena and Alekhya Datta of TERI.
Industry analysts believe affordability could become the defining issue of India’s next energy phase.
One analyst said the success of renewable energy will ultimately depend less on record-low tariffs and more on whether consumers can easily access those benefits.
“Solar tariffs may have fallen to ₹2.5 per unit, but consumers do not experience the transition through tariffs. They experience it through monthly bills, fuel expenses and upfront costs. The challenge is ensuring that renewable energy becomes affordable not only to generate but also to adopt,” the analyst said.
That challenge becomes even more important as India’s electricity demand continues to surge. Dastur Energy estimates power demand could rise by 25-30% by 2030 and 60-70% by 2040 from current levels, driven by cooling demand, urbanisation, manufacturing growth, data centres and digital infrastructure.
For policymakers, the next phase of India’s renewable-energy story is therefore becoming increasingly consumer-centric.
The first decade was about adding capacity and driving down tariffs.
The next decade may be judged by something much simpler: whether a middle-class household can lower its electricity bill through rooftop solar, whether a farmer can irrigate fields without worrying about diesel prices, and whether ordinary consumers become less vulnerable to the next oil shock from West Asia.
India has already proven it can generate cheap renewable power.
The bigger test now is whether it can make that transition affordable enough for millions of consumers to join.
