Opportunities in Solar Energy for MSMEs: Insights from the International Solar Alliance

Solar Power: A Bright Future for MSMEs in India and Africa

New Delhi, August 24 (ANI) — The solar energy sector is emerging as a beacon of opportunity for Micro, Small, and Medium Enterprises (MSMEs) in India and across Africa, according to Ashish Khanna, Director General of the International Solar Alliance (ISA). Speaking at an event organized by the PHD Chamber of Commerce and Industry (PHDCCI), Khanna emphasized the vast potential for MSMEs to thrive in this burgeoning market.

Khanna pointed out that solar rooftop installations and solar pumps are key areas ripe for investment and innovation. “The cost of solar pumps has significantly decreased, making it imperative for the world to transition from diesel to solar solutions,” he stated. India has already installed approximately 2 million solar pumps and aims to reach 5 million, presenting a substantial business opportunity where each pump costs around USD 10,000 (approximately 8 lakh rupees). This shift not only promises to reduce costs for farmers but also integrates them into the solar supply chain, fostering economic growth and environmental sustainability.

The ISA director also highlighted the pressing needs in Africa, particularly in Ethiopia, where only 10% of arable land is currently irrigated. “The Ethiopian government has expressed a dire need for 1 million solar pumps to ensure food security,” Khanna noted. With Africa importing $400 billion worth of agricultural expertise, countries like India and China are poised to fill this gap.

India’s solar journey has been remarkable. Just a decade ago, the nation was a novice in solar energy, but it has now surpassed Japan to become the world’s third-largest solar power producer. As of July 2025, India’s cumulative solar power capacity reached 119.02 GW, with a diverse mix of ground-mounted, rooftop, hybrid, and off-grid installations.

This rapid expansion is a testament to India’s strategic planning and commitment to renewable energy, as outlined in its pledge at COP26 to achieve 500 GW of non-fossil fuel electricity capacity by 2030. The government’s policies have also bolstered domestic solar manufacturing, with capacities for solar modules and PV cells nearly doubling in just one year.

As the world pivots towards sustainable energy solutions, the solar sector stands out as a promising frontier for MSMEs, not only in India but also in emerging markets across Africa. With the right investments and innovations, this sector could play a crucial role in shaping a sustainable and economically viable future.

As Khanna aptly put it, “These are the opportunities in India and beyond.” The solar revolution is not just a technological shift; it’s a pathway to economic empowerment and environmental stewardship.