The Energy and Resources Institute (TERI) is calling for a national mission to boost solar thermal energy for industrial use. This shift could replace fossil-fuel-based heating in sectors like pharmaceuticals, dairy, and textiles, offering lower operational costs than diesel or gas-fired steam generation.
As India works toward its 2070 net-zero emissions goal, experts are highlighting a gap in the current renewable energy strategy: the reliance on fossil fuels for industrial process heat. While solar photovoltaic panels are widely used for electricity, solar thermal technology—which uses the sun’s energy to create heat for industrial processes—remains underutilized despite its potential to decarbonize manufacturing lines.
Industrial Heating Potential
Many industries, including pharmaceuticals, textiles, and food processing, require massive amounts of heat for tasks like pasteurization, sterilization, and fabric dyeing. In these sectors, thermal energy often accounts for 60% to 75% of total energy consumption. Currently, most of this heat is generated by burning coal, diesel, or natural gas, which are significant sources of carbon emissions. Solar thermal systems can provide an immediate, cleaner alternative by harnessing solar radiation to produce steam, hot water, or hot air, reducing the industry's dependence on expensive and polluting fossil fuels.
Economic and Cost Comparison
From a cost perspective, solar thermal energy is already competitive against several fossil fuel alternatives. According to recent data, producing one kilogram of steam using solar thermal systems costs approximately ₹1.2. This is significantly cheaper than the costs associated with diesel (₹7.82), natural gas (₹4.32), or furnace oil (₹3.84).
However, the technology faces a price challenge when compared to coal, which currently costs around ₹1.35 to generate the same amount of steam. Because of this, companies using coal-fired boilers often hesitate to switch, as the payback period for such an investment can stretch to five years. In contrast, businesses shifting from diesel to solar thermal can see their investments pay off in as little as one year.
Proposed Policy Support for Adoption
To address barriers such as high upfront capital spending, land availability, and a lack of specialized financing, TERI has recommended a structured national approach. The proposed 'National Solar Thermal Mission' would focus on creating an ecosystem for adoption. Key suggestions include providing loans backed by green bonds, lowering the Goods and Services Tax (GST) for these systems, and offering 50% accelerated depreciation to encourage companies to modernize their heating infrastructure.
Another major recommendation is the creation of industrial Special Purpose Vehicles (SPVs). These entities would allow groups of factories to pool their resources and share the costs of building and maintaining solar thermal infrastructure, which is often more complex to design than standard mass-produced solar panels. The progress of these policy recommendations and the potential for government incentives will be important factors for investors to track in the renewable energy and industrial infrastructure sectors.