TERI Calls for Accelerated Adoption of Solar Thermal Technologies to Decarbonize India’s Industrial Sector

Policy brief presents actionable recommendations to mainstream solar thermal technologies across Indian industries and accelerate low-carbon manufacturing.

New Delhi, July 10, 2026: The Energy and Resources Institute (TERI) today released its Policy Brief on Solar Thermal Energy for Industrial Decarbonization, highlighting the significant potential of solar thermal technologies to reduce fossil fuel dependence and support India’s transition toward a low-carbon industrial economy.

The policy brief was launched during a hybrid event held at TERI in New Delhi, bringing together experts, policymakers, industry stakeholders, and researchers to deliberate on strategies for mainstreaming solar thermal technologies across industrial applications.

Delivering the opening address, Dr Vibha Dhawan, Director General, TERI, highlighted the objective of the policy brief and why the study was undertaken, and said, “India's net-zero transition depends on empowering SMEs to overcome financial and technological barriers through affordable capital, proven pilot projects, and market-driven ESG incentives for clean process heat.”

Presenting the findings of the policy brief, Mr Ajay Shankar, Distinguished Fellow, TERI, along with Ms Urvashi Singh, Research Associate, TERI, and Dr N K Ram, Senior Fellow, TERI, outlined the study’s analysis and policy recommendations.

Key recommendations from the policy brief are:

• Launch a National Solar Thermal Mission with dedicated institutional support, long-term financing, fiscal incentives, and an enabling policy framework to accelerate industrial adoption of solar thermal technologies.
• Facilitate affordable financing and market-driven growth through fixed-interest loans of up to 15 years, a 5% GST rate, accelerated depreciation benefits, while avoiding direct subsidies and allowing competition to reduce costs.
• Establish a Mission-led Special Purpose Vehicle (SPV) to implement pilot projects, undertake back-to-back contracting for process heat supply, assume initial project risks through contingent liability, and catalyse private sector participation until the solar thermal market reaches maturity.
• Build industry confidence and technical capacity by promoting awareness, encouraging adoption in new industrial plants, strengthening design capabilities, and supporting focused R&D and innovation.
• Implement pilot projects in industrial parks for sectors such as food processing, textiles, dairy, and pharmaceuticals, supported by shared solar thermal infrastructure, risk-sharing mechanisms, and partnerships with industrial park developers.
• Scale up deployment after successful pilots by retrofitting existing industrial units with solar thermal systems, supported by concessional financing, tax incentives, and phased regulatory measures to encourage widespread adoption.

The discussions that followed focused on the opportunities and challenges associated with scaling solar thermal technologies in Indian industry, including policy support, financing mechanisms, technology adoption, and industry preparedness.

Concluding the programme, Mr AK Saxena, Senior Director, TERI, thanked the participants and reiterated the importance of collaborative efforts among government, industry, research institutions, and financial stakeholders in advancing industrial decarbonization.

The policy brief is expected to contribute to ongoing policy discussions on industrial decarbonization and support informed decision-making for accelerating the deployment of clean thermal energy solutions in India.