India’s rural areas often face challenges in accessing reliable electricity, making off-grid solar projects a vital solution. On May 6, 2025, the Union Ministry of New and Renewable Energy (MNRE) introduced revised efficiency standards for solar modules, aiming to enhance rural electrification by making solar solutions more affordable and accessible in remote regions.
Revised Efficiency Standards
Lowering the Threshold for Accessibility
The MNRE reduced the minimum efficiency threshold for off-grid solar modules to 18 per cent for both crystalline silicon and cadmium telluride (CdTe) technologies. This change targets small-scale applications, such as solar lamps and streetlights, with a capacity below 200 watts peak. By lowering these standards, the ministry aims to reduce costs and encourage participation from smaller manufacturers in government-backed projects.
Impact on Rural Communities
Enhancing Energy Access
The revised standards are expected to significantly improve energy access in areas where grid electricity is unreliable or unavailable. The affordability of lower-efficiency modules could lead to widespread installation of solar streetlights and other small appliances, transforming daily life in rural India. This initiative supports the government’s goal of providing sustainable energy solutions to remote communities, fostering economic and social development.
Solar Technologies in Use
Crystalline Silicon vs. CdTe
India primarily relies on two solar technologies: crystalline silicon and cadmium telluride (CdTe). Crystalline silicon panels are known for their higher efficiency and durability but come at a higher cost. In contrast, CdTe panels are cheaper and perform better in low-light conditions, though they require careful disposal due to the presence of toxic cadmium. The choice of technology depends on project requirements and environmental considerations.
Growth of Off-Grid Solar in India
A Milestone in Renewable Energy
India’s off-grid solar capacity has grown steadily. By 2024, over 1.7 million solar home lighting systems and 8.4 million solar lamps were deployed. As of April 2025, the country’s cumulative solar capacity reached 107.95 GW, with off-grid systems contributing 4.98 GW. The Off-Grid Solar PV Applications Programme continues to drive the adoption of solar solutions in areas lacking conventional electricity.
Balancing Quality and Affordability
Addressing Concerns
While the relaxation of efficiency standards enhances affordability, concerns about quality and long-term performance remain. Critics note that less efficient panels may require more installation space and could degrade faster, potentially affecting reliability. The MNRE’s challenge lies in ensuring that cost-effective solutions maintain acceptable standards to deliver sustainable benefits to rural communities.
Why This Matters
A Step Toward Inclusive Development
The MNRE’s initiative reflects a pragmatic approach to addressing energy poverty in rural India. By making off-grid solar solutions more accessible, the government is empowering remote communities with clean, reliable energy. However, effective implementation and quality control will be key to ensuring the long-term success of this program, aligning with India’s broader renewable energy goals.
Key Facts About Off-Grid Solar in India
- The MNRE announced revised solar module efficiency standards on May 6, 2025, setting a minimum of 18 per cent for off-grid applications.
- India’s cumulative solar capacity reached 107.95 GW by April 2025, with off-grid systems contributing 4.98 GW.
- Crystalline silicon and CdTe are the primary solar technologies used, each with distinct advantages and challenges.
- Over 1.7 million solar home lighting systems and 8.4 million solar lamps have been deployed by 2024.
- The Off-Grid Solar PV Applications Programme targets areas without access to conventional electricity, promoting sustainable energy solutions.