In Short : Rajasthan now generates nearly 70% of its power capacity from renewables, led by over 29 GW of solar and 5 GW of wind. Despite this, only 16% of its daily electricity use comes from green sources, as much is exported. Policy incentives support growth, but rising land costs and reliance on coal-based power challenge full local adoption.
In Detail : Rajasthan has emerged as a leader in India’s renewable energy sector, with nearly 70% of its total power capacity now coming from clean sources. The state boasts more than 35 GW of renewable energy, including over 29 GW from solar and about 5 GW from wind installations across its vast desert landscapes.
This growth has helped Rajasthan reclaim its top position among Indian states in terms of installed renewable capacity, slightly edging out Gujarat. Its strong solar potential and favorable policies have made it a preferred destination for large-scale solar developers and investors.
However, despite this capacity, Rajasthan still uses only about 16% of renewable energy for its own daily consumption. A large portion of the power generated from solar and wind is transmitted to other states, while local power distribution companies continue to rely heavily on coal-based sources.
This dependency on coal has led to rising financial pressure. Local DISCOMs are signing new coal-based power deals, which are costlier than green power, further increasing their debt burden. The contrast between installed renewable capacity and actual usage highlights the complexity of the energy transition.
To support its clean energy ambitions, the state has introduced progressive policies like the Integrated Clean Energy Policy 2024 and the Renewable Energy Policy 2023. These aim to achieve 125 GW of renewable capacity by 2030, offering incentives such as land tax waivers, reduced transmission charges, and flexible land leasing terms.
Despite policy backing, new regulations have added cost pressures. A rule change imposing stamp duty on land sales or lease agreements for renewable projects has increased land acquisition costs by 8–10%, making it more expensive to develop large-scale green energy facilities.
Rooftop solar adoption is also on the rise in Rajasthan. Companies like Tata Power are pushing household solar systems, having already installed 180 MW across 7,600 rooftops. They aim to add another 125 MW through their Ghar Ghar Solar initiative, offering subsidies to encourage uptake.
Rajasthan’s clean energy leadership is evident in capacity terms, but the road ahead involves challenges. Closing the gap between generation and local consumption, addressing regulatory hurdles, and upgrading infrastructure are key to realizing its full renewable energy potential.
