Business · India Bureau
India's industrial sector overlooks vast solar thermal energy opportunity
Despite the free availability of solar radiation, Indian industries continue to rely heavily on expensive diesel and gas for their thermal energy needs. Experts say the adoption of solar thermal systems could significantly reduce operating costs across multiple sectors.
LSN India ·

India's manufacturing and industrial sectors are sitting on an underutilised energy resource that could substantially cut their operational expenses. Solar thermal technology, which harnesses the sun's heat directly for industrial processes, remains largely unexploited despite the country's abundant solar resources and rising energy costs.
Industries such as food processing, textiles, chemicals, and dairy production require considerable thermal energy for their operations. Currently, most rely on diesel and natural gas to meet these demands, leading to significant recurring fuel expenditures. Solar thermal systems present a compelling alternative, as solar radiation is freely available across most of India's geography.
The cost advantage of switching to solar thermal energy is substantial. Unlike fossil fuels, which fluctuate in price and require continuous procurement, solar energy involves minimal ongoing expenses once infrastructure is installed. This makes long-term financial planning more predictable for industrial units.
However, the solar thermal market for industrial applications remains nascent in India. Limited awareness about the technology's capabilities, absence of standardized installation practices, and perceived high upfront capital requirements have slowed adoption. Industry analysts suggest that government incentives, awareness campaigns, and technical support could accelerate market development and help manufacturers transition to cleaner, more cost-effective energy solutions.