Govt offers Rs 2cr aid to help industries switch from fossil fuels to solar heat

NEW DELHI: In a move aimed at cutting fossil-fuel use in factories and reducing the economy’s exposure to imported energy, govt is looking to promote solar heat for industrial processes, offering financial support of up to Rs 2 crore for pilot projects.Ministry of new and renewable energy (MNRE) has launched an initiative to demonstrate concentrating solar thermal systems for industrial heating, with the technology aimed at reducing fossil-fuel consumption in factories. The focus is on developing commercially viable and scalable solutions that can eventually be deployed on a larger scale.The initiative comes as India seeks to reduce fossil-fuel dependence while moving towards its target of net-zero emissions by 2070. Industry is a major energy consumer and NITI Aayog estimates it used 369 Mtoe of energy in 2025, with fossil fuels accounting for 83 percent of the total.MNRE will provide up to 50 percent financial support to industry, start-ups, private institutes and entrepreneurs, subject to a maximum of Rs 2 crore per project. The assistance may be provided as viability gap funding.The projects will combine solar thermal systems with thermal energy storage and existing industrial heating systems. This will allow the systems to provide continuous process heat even during “non-sunshine hours”.Officials said the ministry wants the pilots to establish the technical and economic viability of replacing fossil-fuel-based industrial heating and demonstrate whether the solutions can be scaled up and replicated. “The projects will also assess their reliability, integration with existing heating systems and the extent of fossil-fuel displacement,” said an official.The technology can potentially be deployed across sectors including hospitality, food processing, breweries, dairy, textiles, chemicals, pharmaceuticals, paper, refineries, cement, glass, iron and steel, among others.A key objective is to promote “green heat” in Indian industry while encouraging indigenous technology development.Developers of the pilot systems will have to operate and maintain them for at least five years, with performance monitoring, said an official. MNRE also plans to develop case studies, best-practice guidelines and replicable business models to facilitate wider commercial deployment.Get the latest Business News and Live updates. Download the TOI app.