In Short : If given strategic policy support, Punjab, a state with significant potential for solar, hydro, and biogas, could become a leader in clean energy. Incentives, land provisioning, and inter-state energy transfers are crucial to lowering costs, decreasing dependency on coal, and accelerating the adoption of solar energy and other renewable resources, according to leaders at a recent industry roundtable, including Pankaj Sharma (ATIU) and Deepak Jain (Avon Cycles).
Growth Levers & Sectoral Insights
From 660 MW in 2014–15 to over 2.17 GW in 2024–25, Punjab’s installed renewable capacity—which includes the solar and large hydro sectors—has increased dramatically.
Despite these advancements, policy inertia, low government support, and low awareness have caused development to remain uneven. Stakeholders suggested:
District-wide use of captive solar allows for cost savings and resource sharing. reserving land for solar farms to facilitate access for developers. permitting the import of electricity from less expensive markets, such as MP (₹3/unit), particularly in Punjab, where energy prices are much higher (₹9/unit), a discrepancy that manufacturers attempting to control operating costs point to.
Market and Strategic Importance
Economic relief: Solar-based generation may result in more predictable and cheaper electricity prices for the residential and commercial sectors.
Carbon mitigation: The use of clean energy would replace coal-based power plants, lowering emissions and promoting sustainable growth.
Investable ecosystem: A supportive policy environment may encourage local production and installations, increasing solar panel production, improving solar system designs, and fostering investor trust in Punjab’s renewable energy sources, all of which could improve the share price trends of the solar industry.
The Bottom Line:
Although Punjab has a lot of potential for green energy, its transition to a cleaner, more economical energy ecosystem could be accelerated with the help of strategic policy changes, such as resource allocation, awareness campaigns, and an encouraging investment climate.
