Government Offers Up to 2 Crore to Help Industries Switch to Solar Heat
Devesh S. is an industry researcher and writer who specializes in translating complex industries into clear, trustworthy, and actionable knowledge. His work…
Summary
The Ministry of New and Renewable Energy MNRE is offering financial support of up to ₹2 crore per project to encourage Indian industries to replace fossil fuel based heating with solar thermal technology. Under the new call for proposals, the government can provide financial assistance covering up to 50% of project costs, subject to a maximum of ₹2 crore per project. The support may be provided as viability gap funding, according to The Economic Times. The initiative is focused on concentrating solar thermal CST technology for industrial process heating.
Published on

Inline Intelligence
The Ministry of New and Renewable Energy (MNRE) is offering financial support of up to ₹2 crore per project to encourage Indian industries to replace fossil-fuel-based heating with solar thermal technology.
Under the new call for proposals, the government can provide financial assistance covering up to 50% of project costs, subject to a maximum of ₹2 crore per project. The support may be provided as viability gap funding, according to The Economic Times.
The initiative is focused on concentrating solar thermal (CST) technology for industrial process heating. MNRE is inviting proposals from industry, start-ups, private institutes and entrepreneurs under its Renewable Energy Research and Technology Development Programme.
Solar heat targets industrial processes
Solar thermal systems use sunlight to produce heat rather than electricity. That heat can be used for applications such as water heating, steam generation and industrial process heating.
MNRE's proposal call is aimed at projects that can demonstrate commercially viable and scalable solar thermal systems, including systems integrated with thermal energy storage and existing industrial processes.
The potential applications span industries where heat is a significant part of production. These include food processing, textiles, chemicals and metals, among other sectors.
The programme therefore targets a part of industrial energy use that is different from conventional rooftop or utility-scale solar power. Instead of producing electricity first and then using it to generate heat, solar thermal technology can supply heat directly for suitable industrial processes.
Funding is capped at ₹2 crore
The government will fund up to half of the eligible project cost, with assistance capped at ₹2 crore for an individual project.
That means a project costing ₹4 crore could, in principle, receive the maximum ₹2 crore support if it meets the programme's requirements. A higher-cost project would still face the ₹2 crore ceiling. The exact assistance will depend on the proposal and its evaluation under the programme.
The funding is intended to help move solar thermal systems beyond the demonstration stage and establish their technical and economic viability in operating industrial environments.
Projects must demonstrate real-world viability
MNRE is looking for proposals that can be demonstrated within existing industrial processes rather than simply testing solar thermal technology in isolation.
The programme is intended to support systems that can eventually be scaled and replicated, with thermal energy storage also forming part of the technology focus. Storage can allow solar-generated heat to be used beyond periods of direct sunlight.
The proposal call covers several forms of concentrating solar thermal technology, including parabolic trough, linear Fresnel, parabolic dish and power-tower systems. Solar PV combined with heat-pump technology is also covered for suitable temperature applications.
October 7 is the proposal deadline
Interested applicants have until October 7, 2026, to submit proposals under the call.
For industries that rely heavily on fossil fuels for heat, the programme could provide an opportunity to test whether solar thermal systems can meet part of that demand at commercial scale. The immediate test, however, will be whether proposed projects can demonstrate reliable performance, economic viability and practical integration into existing factories.
The initiative represents a shift in how solar technology is being applied in India's industrial sector: not only as a source of electricity, but also as a potential direct source of process heat.
Sources
Energetica India: https://www.energetica-india.net/news/mnre-offers-up-to-inr-2-crore-support-for-concentrating-solar-thermal-projects
From TatvaOps
Solar & Energy Solutions
Considering rooftop solar?
Verified installers, subsidy support, and milestone-secured payments.
Free quotes · Verified contractors · tatvaops.com
Discuss this article
Join the conversation
Continue this discussion on Forums. A board named like this Radar article is filed under Radar.
More from Solar
Clean Energy Needs 220 Billion Dollars
India's reported 220 billion dollar clean-energy funding need puts the focus on grids, storage and delivery, not just new capacity.
DCR Solar Module Premium Raises Rooftop Costs in India
Rising premiums on domestically compliant solar modules are creating fresh affordability concerns for Indian households considering rooftop solar, with higher upfront costs potentially extending the time needed to recover their investment. What Has Changed? A Mercom India report published on…
Battery Manufacturing: India Reaches 86 GWh Downstream
India's downstream battery storage manufacturing capacity stands at about 86 GWh, according to Mercom India. Its new research highlights a gap between assembling storage systems and producing the cells inside them. A large headline with an important boundary Mercom's 22 October account of its…
Inline Intelligence
Key Insight Actions
Connected knowledge for Renewable Energy Funding
Move between tutorials, discussions, Studio, and hubs without losing context.
Related discussions
L&T's 8.54 Lakh Crore Order Book: Is Bigger Better?
1 replies
Related discussionIndias Data-Centre Boom Is Turning Power and Land Into Digital Infrastructure
1 replies
Related discussionApartment Solar: Can Surats Savings Be Reproduced?
1 replies
Related discussionIndias 9.5 Billion Realty Quarter Looks Huge. The Asset Mix Matters More
0 replies
Related discussion
Topic hubs
Conclusion Intelligence
Related Discussions
L&T's 8.54 Lakh Crore Order Book: Is Bigger Better?
Popular in insights discussions1 reply
Indias Data-Centre Boom Is Turning Power and Land Into Digital Infrastructure
Popular in insights discussions1 reply
Apartment Solar: Can Surats Savings Be Reproduced?
Popular in insights discussions1 reply
Indias 9.5 Billion Realty Quarter Looks Huge. The Asset Mix Matters More
Popular in insights discussions0 replies
Was this helpful?
Let us know what you think