The Capacity Utilisation Factor (CUF) of solar power projects is less than thermal, hydro, nuclear, wind and bio-mass power projects. The Government has set a target of installing 100 GW of solar capacity by 2022.

Most of the investment in Solar Power sector has been made by the private sector. The Government is promoting development of solar energy in the country by providing various fiscal and promotional incentives such as accelerated depreciation, waiver of Inter State Transmission System (ISTS) charges and losses, financing solar rooftop systems as part of home loan, and permitting Foreign Direct Investment up to 100 percent under the automatic route.

The year-wise details of solar power generation as reported by the Central Electricity Authority (CEA) are:

Year Solar Power Generation (in BUs)
2015-16 7.45
2016-17 13.50
2017-18 25.87