U’khand crosses 1 GW of Solar
By Anand Adwani
Uttarakhand, long called “Urja Pradesh”, has a quiet new milestone: in February 2026 its installed solar capacity crossed 1,027.87 MW. A new report says the sun, not the river, should now drive the state’s energy revenue.
The report, “Integrated Renewable Revenue Model for Uttarakhand”, was prepared by Chief Policy and Strategy Advisors Pvt. Ltd. for the Government of Uttarakhand. It proposes squeezing more from small hydropower while making solar the “primary driver” of growth.
Hydro’s Seasonal Problem
The state has about 3,355 MW of small hydro potential, yet only around 14% is harnessed. Installed capacity is roughly 220–250 MW. Output is lopsided: 70–80% of annual generation comes in the four monsoon months, leaving cash flows thin in winter. Falling plant load factors, ageing equipment, forest clearances and local opposition add to the strain. Small-hydro revenue has often been below 2–3% of state revenue.
Why Solar Wins on Speed and Cost
- Capital cost: Rs 4–7 crore per MW for solar, against Rs 12–18 crore for small hydro
- Build time: 6–18 months, against 5–8 years
- Payback: 5–8 years, with far more predictable income
- Tariff: Rs 2.50–3.80 per unit through competitive bidding
Today’s 1 GW includes 397 MW of ground-mounted plants, 241 MW of rooftop solar under PM Surya Ghar, and 137 MW under the Chief Minister’s Solar Self-Employment Scheme.
The Big Targets
The state’s policy target is 2,500 MW by 2027. The report’s roadmap goes further: 5,000–6,000 MW by 2030 and 8,000–10,000+ MW by 2035. Priorities include floating solar on reservoirs such as Tehri, canal-top plants, rooftops and agri-voltaics, where farmland earns from crops and power together.
At full scale, solar could earn Rs 4,400–8,700 crore a year. Combined with hydro, renewable revenue could reach Rs 5,500–12,000 crore annually by 2035, with cumulative solar potential of Rs 40,000–70,000 crore. The report also estimates 10–15 jobs per MW.
The idea: solar by day and in the dry months, hydro through the monsoon, each covering the other’s weak season.
Fixing the Hydro Fleet
Rather than abandoning hydro, the report calls for modernisation, uprating and better forecasting.
These could lift efficiency by 15–25%. It also recommends ancillary services, pumped-storage pilots, hybrid hydro-solar projects and revenue-sharing with local communities.
Why the State Lags
The report blames overdependence on hydro, scarce flat land, eco-sensitive forests, weak hill grids, slow rooftop adoption and policy delays. It points to Himachal Pradesh, Bhutan and Switzerland as models of mountain energy done well.
What Must Happen Next
- Single-window clearances and clear incentives for solar
- Priority for floating and agri-voltaic projects
- Stronger grid and forecasting capacity at UREDA and the discoms
- Green bonds, PPPs and viability-gap funding to draw private capital
The report’s verdict is that Uttarakhand has the resource and the momentum. What it needs is the speed to turn its sunshine into steady, year-round income.
(Anand Adwani is Financial Advisor, CM Advisory Support Group, CPSA, Uttarakhand Secretariat, Dehradun.)
