The Ministry of New and Renewable Energy (MNRE) has invited proposals to promote concentrating solar-thermal (CST) technology for industrial process heating, offering financial support of up to 50% of project costs, capped at INR 2 crore per project. The assistance will be provided as viability gap funding (VGF) under the Renewable Energy Research and Technology Development (RE-RTD) Programme.
The initiative aims to accelerate the deployment of CST systems in industrial applications where thermal energy is required for processes such as heating, drying, cooking, boiling and other heat-intensive operations. By replacing or reducing the use of fossil fuels for process heat, the technology can support industrial decarbonisation and lower dependence on conventional energy sources.
According to the proposal framework, eligible projects can receive central financial assistance covering up to half of the project cost, subject to the maximum support limit of INR 2 crore. The programme is designed to encourage technology deployment and demonstrate the commercial potential of concentrating solar-thermal solutions in India’s industrial sector.
CST technology uses mirrors or other concentrating systems to capture solar radiation and generate high-temperature thermal energy. This makes it particularly relevant for industries with significant heat requirements and offers an alternative pathway for reducing emissions beyond conventional solar PV-based electricity generation.
MNRE has set October 7, 2026, as the deadline for submission of proposals. The programme is expected to encourage project developers, technology providers and industrial users to explore solar-based thermal applications and help build a stronger market for clean industrial heat in India.
The move comes as India continues to expand policy support for renewable energy technologies that can address industrial energy demand and contribute to its broader clean-energy and decarbonisation goals.
