The narrative of India’s growth is often woven around its bustling cities, industrial corridors, and technological advancements. But the real potential for transformative change lies in rural India, where over 65% of the country’s population resides. The untapped power of rural India is not just in its people or land but in the potential for a renewable energy revolution that is reshaping lives, economies, and the very social fabric of the countryside. This quiet revolution is more than a story of solar panels and wind turbines—it’s a testament to how sustainable energy can fundamentally alter the trajectory of a region.

Unlocking economic potential through renewable energy

India achieved a renewable energy capacity of over 174 GW in 2022 , and the government’s target of reaching 500 GW by 2030 focuses on building more renewable energy ecosystems.

The real opportunity lies in how rural India can harness this growth to fuel its economic transformation. For many communities, finding a reliable and affordable energy source has been a persistent challenge. One significant insight from the adoption of renewable energy in rural India is its impact on local economies. By decentralizing energy production through solar, wind, and biomass, villages are evolving into energy producers rather than just consumers.

This transition is sparking the rise of micro-enterprises—such as solar-powered agro-processing units and small biogas plants—that are creating new income opportunities for rural populations. A study by the Council on Energy, Environment, and Water (CEEW) indicates that decentralized renewable energy systems could help the jobs and incomes of 60 million people in India by 2030 . This will not only curb migration to urban areas but also bolster local economies.

From energy scarcity to energy surplus: Empowering rural entrepreneurs

In rural India, the growth of renewable energy is fostering a new generation of entrepreneurs. For instance, solar-powered irrigation pumps are not only replacing expensive diesel-powered options but also enabling farmers to irrigate their fields more effectively. This shift has a significant effect on agricultural productivity and profitability. By 2030, the shift to SWPs (Solar Water Pumps) and grid-connected solar power plants will enable 40-50 gW of agricultural load to be shifted from night to day, aiding farmers with reliable daytime electricity.

Equally crucial is the role these technologies play in establishing rural businesses. Solar-powered cold storage systems are helping to minimize post-harvest losses that currently account for about 25% to 30% of total agricultural production in India, costing the nation around $12 billion each year. With renewable energy, rural entrepreneurs can store and sell fresh produce without depending on unreliable grid power, creating a more stable and profitable supply chain that benefits both producers and consumers.

Renewable energy’s social impact

Renewable energy is not just an environmental initiative—it is becoming a driver of social equity. Access to clean, affordable energy is reducing disparities that have long existed between urban and rural populations. Electricity in rural homes, once sporadic or non-existent, is now allowing children to study longer, families to refrigerate food, and villages to operate water pumps that improve sanitation and health outcomes. This isn’t just about convenience; it’s about raising the standard of living.

Moreover, by reducing reliance on expensive, polluting energy sources like diesel, renewable energy is freeing up household income that can be reinvested in education, healthcare, or farming improvements. The indirect benefits of renewable energy are often more profound than the direct ones—energy access is catalyzing broader social development.

Closing the gap: Renewable energy as a tool for social equality

Renewable energy brings not only economic advantages but also has significant social implications. In rural areas of India, it is emerging as a means to combat inequality. Approximately 85 million rural households still rely on traditional biomass fuels like wood and cow dung, which pose serious health risks. The introduction of solar-powered cookstoves and biogas units is gradually replacing these harmful fuels, leading to better health outcomes and improved environmental conditions. The International Renewable Energy Agency (IRENA) estimates that transitioning to clean cooking solutions could avert premature deaths in India, while also saving time and labor, particularly for women who often handle fuel collection.

Education is another critical area where renewable energy is making a significant difference. With solar panels powering schools in remote locations, students are gaining access to digital learning and longer study hours. Government data indicates that the electrification of schools has led to a 15% increase in attendance rates in states like Uttar Pradesh and Madhya Pradesh. Reliable electricity is allowing rural students to connect with the wider world, improving their future opportunities in an increasingly digital economy.

Renewable energy as a catalyst for inclusive growth

Renewable energy is more than just an alternative to traditional power sources; it serves as a driving force for inclusive growth and sustainable development in rural India. By offering affordable, reliable, and clean energy, renewable technologies empower rural communities to take charge of their futures—economically, socially, and environmentally. As India approaches its renewable energy goals in the coming years, rural communities will be key players in this transformation. They will not only reap the benefits but also play a crucial role in defining the future of India’s energy landscape.

Views of the author are personal and do not necessarily represent the website’s views.

Naresh Mansukhani, Chief Executive Officer, Juniper Green Energy has experience in technology, engineering, design and cost innovation, business development, procurement, commercial operations, and statistical analysis. He has 32 years of experience and is responsible for the complete business cycle of the division from securing business to successful execution and successful operations for the duration of PPA.

He has been involved in various leadership roles creating opportunities for winning, building and sustaining Solar PV projects of more than 1 GW, before starting the Juniper Green Energy platform, he started the solar division in Orange Renewable as a CEO and was successful in building best-performing assets in the industry. Naresh has done BE (Industrial Electronics) from Shivaji University.