How Solar and Wind Tariffs Cut Carbon Emissions: India’s 2025 Renewable Energy Breakdown
When it comes to shaping sustainable investment, consumption patterns as well as deployment, the role of renewable energy is non-negotiable. As nations race to accelerate clean energy transitions, the focus shifts to renewable energy regulations, and the tariffs that support them.
India: State-wise Solar Prices and Support
When it comes to using renewable energy in India, the country has been making continuous strides. In May this year, India produced 24.7 billion units of green electricity—making up about 15% of total power, according to a news report by Reuters. Different states have set their own prices and rules to encourage people and businesses to use solar power:
Kerala pays ₹3.15/unit for solar electricity fed back to the grid through rooftop systems. This helps households and small businesses lower their carbon footprint while earning from clean power. It supports India’s commitment to reduce emissions under the Energy Conservation Act.
Tamil Nadu offers ₹3.10–₹3.61/unit, depending on the system size. The more clean energy added to the grid, the less fossil fuel is burned—helping Tamil Nadu meet its State Action Plan on Climate Change.
Maharashtra offers around ₹2.90/unit for large solar plants. This promotes utility-scale solar development, supporting the state’s carbon reduction targets under its Renewable Energy Policy.
Gujarat offers ₹2.25/unit for homes, government buildings, and MSMEs for the first five years, followed by 75% of the average electricity tariff. This long-term policy supports solar adoption and helps meet Gujarat’s Net Zero goals. The state also provides an extra ₹1/unit for clean energy backed by battery storage, helping industries reduce reliance on fossil fuels at night.
As per reports, Gujarat now leads in renewable energy capacity with 35,000+ MW installed and is adding battery energy storage systems (BESS) for round-the-clock clean power. Industrial users in Gujarat can access this power by paying an extra ₹1/unit.
These policies not only support solar energy adoption but also align with India’s carbon emissions reduction goals under the Paris Agreement and the Carbon Credit Trading Scheme (2023).
UAE: Renewable Energy Regulations & Feed-in Tariffs
Just like India, the UAE is also rapidly embracing renewable energy in its long-term strategy:
The Federal Decree Law No. 17 of 2022 legally defines and enables distributed renewable energy production, with clear grid connection rules.
The UAE Energy Strategy 2050 aims to triple renewable energy capacity by 2030, investing AED 150–200 billion, and targeting 50% clean power by 2050.
Dubai’s Mohammed bin Rashid Al Maktoum Solar Park offers world-leading solar tariffs of 5.89 ¢/kWh (~₹5/unit). The 200 MW phase includes 15-hour storage, enabling continuous solar generation.
The UAE has also implemented clean energy certificate schemes, which help verify renewable sourcing for corporate sustainability efforts, according to the Department of Energy.
Viable Renewable Energy Solutions & Costs
1. Solar & Wind with Battery Storage
Combining solar or wind energy (₹2.9–₹3.6/unit) with battery storage helps provide clean energy 24×7. For instance, Rajasthan’s 4 GWh BESS project, supported by ₹720 crore from the government, is enabling round-the-clock renewable power. This reduces reliance on coal-based electricity, cutting carbon emissions significantly.
2. Feed-in Tariffs & Net Metering for Rooftop Solar
Installing rooftop solar is both affordable and profitable. Most Indian states allow consumers to send extra power to the grid and earn credits through net metering. Under the PM Surya Ghar Muft Bijli Yojana, households receive up to ₹78,000 subsidy and 300 free units/month. This reduces dependency on grid electricity and the carbon emissions from fossil-fuel power plants.
3. Large-Scale Solar & Wind Auctions
The government hosts auctions for companies to bid on solar or wind energy projects. For example, GUVNL’s recent wind power bid closed at ₹3.42/unit. These competitive rates reduce costs for consumers and support a shift away from fossil fuels—lowering India’s national carbon emissions.
Where Does Fitsol Fit In?
At Fitsol, we support both businesses and governments in navigating India’s fast-changing clean energy landscape. Our role is crucial in linking renewable energy deployment with carbon emission reduction.
• Carbon Emissions Mapping & Hotspot Analysis
We identify where emissions come from—across regions, operations, and energy sources—so you can target clean energy where it makes the biggest impact.
• Regulatory Mapping
Every state has its own renewable tariffs and net metering rules. Our team helps you track and compare them to align with carbon reduction goals and state-specific solar incentives.
• Financial Modeling
Clean energy must also make financial sense. We prepare cost-benefit analyses, including battery storage economics, so you can avoid fossil-fuel backup power and cut emissions affordably.
• Implementation Support
From energy tender assistance to final system commissioning (solar, wind, or hybrid), we provide end-to-end project support—and help you track carbon reductions for credit claims under India’s Carbon Credit Trading Scheme.
With India and the UAE introducing strong clean energy policies, incentives, and tariffs, renewable energy is now more viable than ever. Navigating these policies, especially around solar tariffs, battery storage incentives, and emission regulations, is key to lowering carbon footprints and maximizing returns. Fitsol stands ready to guide you—from strategy to implementation—helping you make smart, climate-aligned decisions that support your Net Zero journey.
Citations
Ministry of New and Renewable Energy: MNRE – Ministry of New and Renewable Energy
Department of energy, UAE: Department of Energy UAE – Clean Energy Certificates