Government to Fund Upto 50% of Costs, Up to ₹2 Crore, for Industrial Solar Heat Projects

The Ministry of New and Renewable Energy has asked companies, start-ups and private institutions to send proposals for projects that use solar thermal technology in factories. The technology uses sunlight to produce heat, which can be used for things like heating water, making steam and other industrial work. 

Upto ₹2 crore support for each project 

As per news reports, the government will fund up to 50% of the total project cost, with the support limited to ₹2 crore per project. The assistance can also be given as viability gap funding. 

Those interested in applying have time until October 7, 2026, to submit their proposals. 

The scheme is open to start-ups, private institutions, entrepreneurs, and industry players. The proposals will be considered under the government's Renewable Energy Research and Technology Development Programme. 

Focus on Industrial Heating 

Solar thermal technology uses sunlight to produce heat instead of electricity. This heat can be used directly for things such as heating water, producing steam, and running industrial heating processes. 

The government is looking for projects that combine solar thermal systems with thermal energy storage and existing industrial processes. Storage can allow the heat produced during the day to be used even when there is no sunlight. 

The focus is on systems that are practical, can be scaled up and can be used by industries on a regular basis. 

Industries That Can Use the Technology 

The technology has possible uses across several industries. Food processing and textile companies, for example, need heat for different stages of production. Similar requirements are seen in chemical and metal industries. 

By supporting these projects, the government is looking to encourage more work on technologies that can replace some of the fossil fuel currently used for industrial heating. 

The call for proposals is also meant to encourage research and development by smaller companies and start-ups, along with private institutions and individual entrepreneurs. 

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Conclusion 

The Ministry of New and Renewable Energy will provide up to 50% financial support, capped at ₹2 crore per project, for selected solar thermal projects. Applications under the programme can be submitted until October 7. 

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