India’s model solar villages

Distributed renewable energy (DRE) systems that generate electricity close to the point of consumption are gaining prominence in India. Increasingly, DREs are seen as a long-term driver of rural development, community empowerment, and economic resilience. India is already translating this vision into action in villages and rural regions across the country.

More than 60% of India’s population resides in rural areas, according to World Bank estimates. With more than 600,000 villages, rural regions will remain central to India’s economic growth. Ensuring clean energy can improve rural livelihoods and strengthen local institutions is vital to the success of the country’s energy transition.

The government of India has therefore incorporated the Model Solar Village (MSV) initiative under its flagship rooftop solar scheme PM Surya Ghar Muft Bijli Yojana (PMSG), which aims to install solar for 10 million households.

While PMSG focuses on residential rooftop solar, the MSV initiative has a broader scope for covering rural communities. The program’s goal is to create one MSV in every district in India and to develop them as a model for other villages to follow. These systems are expected to provide 24/7 solar power while the program promotes applications such as solar lighting and drinking water purification systems to empower local communities.

MSV has an allocation of INR 8 billion ($83 million), with INR 10 million earmarked for each selected village. To become an MSV, villages within each district compete over a six-month period to maximize DRE deployment. The elected village’s local governments (called gram panchayats in India) lead community mobilization, raise awareness, and encourage solar adoption under programs such as PMSG and others promoting the use of solar in agriculture. The village with the maximum installed DRE is then selected as the MSV for the district and is eligible for the allocated central financial assistance.

The MSV initiative is unique not due to the financial assistance it provides, but in the subsequent planning process. For each selected MSV, a detailed project report is prepared by a designated agency. Each report assesses the village’s energy mix and demand, livelihood status, available public infrastructure, development priorities, and available local resources to identify and recommend the optimal DRE portfolio. This planning-based approach ensures that DRE investment in the village is driven by local priorities and needs and not solely by deployment targets.

Powering development

The emphasis on productive uses of energy is another vital aspect of the MSV initiative. The proposed interventions include solar-powered equipment for essential livelihood activities (e.g., flour mills, cold storage, and food dryers), public lighting, and agricultural pumps, along with community solar plants – including systems with integrated battery storage – and rooftop solar installations for public buildings. Many also recommend solar-powered equipment for self-help groups and women’s community groups to strengthen rural livelihoods and empower women-led small-scale enterprises.

Community ownership of the DRE assets is another crucial feature of the MSV initiative. All DRE assets created must be owned by the gram panchayat or community collectives, not by any individual beneficiary. This ensures community participation and sharing of responsibilities for long-term operations, maintenance, and monitoring of DRE assets.

The economic implications of the MSV initiative are significant. The clean and reliable energy for the village creates opportunities for the growth of small enterprises, low energy costs for public institutions, rural employment, and value addition in agricultural and allied activities.

Global blueprint

Modhera village in India’s western state of Gujarat serves as an early demonstration of the broader MSV vision. Modhera is the country’s first 24/7 solar-powered village. It is powered by around 1,300 individual 1 kW rooftop solar systems installed across residential rooftops in the village, a 6 MW ground-mounted solar plant, and a 15 MWh battery energy storage system. Since these systems were built, Modhera has seen significant improvement in power reliability and livelihood standards. While Modhera predates the MSV initiative, it demonstrates the transformative potential the initiative aims to replicate across the country.

India’s MSV initiative has lessons for other countries. While there are examples of community-level initiatives elsewhere, MSV combines a countrywide policy framework with village-level energy planning, along with a strong emphasis on community-owned productive uses of clean energy. Many countries face challenges similar to those in rural India, including unreliable energy access, dispersed populations, and heavy reliance on diesel. Though each region will need solutions tailored to its local needs, the underlying principle remains the same. DRE systems deliver their greatest value when they power livelihoods and homes.

With the global energy transition increasingly focusing on local economic development, inclusion, and resilience, India’s MSV shows that DRE systems can deliver much more than clean energy. They can become the cornerstone for stronger rural institutions and thriving rural economies and livelihoods.

The MSV initiative, if executed successfully, could become one of India’s most notable contributions to the global energy transition. It could create a replicable blueprint for building renewable-powered, economically vibrant and resilient rural communities.Shantanu Roy

Local residents take part in consultations for clean energy projects in Saderkoot Payeen village, Bandipora district, Jammu and Kashmir.

About the author

Shantanu Roy is the sector coordinator of renewables and energy conservation at the Center for Study of Science, Technology and Policy (CSTEP), a research-based think tank in India. With more than 17 years of experience across renewables, thermal power, and oil and gas, he collaborates with government and industry to accelerate renewable energy adoption nationwide.

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