India to invest $22bn in bid to become world solar leader

The Indian government is working on ambitious plans designed to make the country a world leader in solar energy, boasting 200GW of installed solar capacity by 2050.

A draft of the National Solar Mission strategy, which was leaked to The Hindu newspaper, revealed the government is planning to provide up to $22bn (£13bn) in state funding over the next 30 years as it attempts to build a solar industry in the country.

The strategy also sets out targets, calling for installed solar capacity to rise from the current 3MW to 20GW by 2020, and 100GW by 2030.

The proposals, which have reportedly been finalised by the federal government and are expected to be announced in the coming weeks, include tax breaks and new tariff structures for the solar energy sector.

In addition, it will mandate that rooftop solar panels are installed on government and public sector buildings, and will require all new hospitals, hotels, guest houses, nursing homes and residential complexes covering an area of 500 square meters or more to install solar water heaters.

The emerging solar lighting sector will receive a further boost, with the government proposing plans to provide access to solar-powered lighting for three million households by 2012 and invest $250m in building solar charging stations for solar lanterns that can be used in rural districts.

The strategy sets a goal of delivering solar energy at a cost that is equal to conventional grid power by 2020 and includes plans to promote commercial-scale solar thermal power plants and solar lighting and heating systems through new micro-finance schemes.

India aims to have solar energy priced the same as conventional grid power by 2020. At that time, it hopes to have one million solar rooftop systems with an average capacity of 3kW.

Work on the strategy, which forms part of India's National Action Plan on Climate Change, began in June 2008, but it has reportedly faced delays as a result of governmental red tape.