The Energy and Resources Institute (TERI) has released a policy brief arguing that solar thermal technologies can reduce fossil fuel dependence and support India's shift to a low-carbon industrial economy. The analysis, titled Policy Brief on Solar Thermal Energy for Industrial Decarbonization, was issued by TERI's director general and emphasised the need to empower small and medium enterprises (SMEs) to overcome financial and technological barriers. The report outlines recommendations to speed adoption.

Solar thermal systems collect sunlight and convert it into heat that can be stored and later used for process heat or converted into electricity, unlike photovoltaic panels that create electricity directly. Systems range from solar concentrators for low-temperature heat to higher-temperature installations that can substitute boilers in some processes. The brief highlights the suitability of heat-focused solutions for many industrial needs.

A central recommendation is a National Solar Thermal Mission with dedicated institutional support, long-term financing, fiscal incentives and an enabling policy framework to encourage industrial uptake. The mission would de-risk investments, support demonstrations and provide market signals for manufacturers and service providers. Concessional finance and targeted subsidies are proposed to make projects bankable.

The report urges pilot projects in industrial parks for sectors including food processing, textiles, dairy and pharmaceuticals, supported by shared solar thermal infrastructure and risk-sharing mechanisms. It recommends partnerships with park developers and models that let multiple firms access common facilities, reducing upfront costs and improving utilisation. Pilot projects are seen as a way to build operational evidence and viable business models.

If adopted at scale, solar thermal deployment could cut fossil fuel use in process heating and contribute to national net-zero goals by lowering manufacturing emissions. The brief states that coordinated policy, tailored finance and sustained industry engagement will be required to convert potential into large-scale deployment, with attention to ensuring benefits reach smaller firms. TERI advises a mix of public support and market-led incentives to accelerate uptake.