Policy roadmap calls for mission-driven financing, industrial pilots and regulatory support to scale clean process heat across manufacturing

India needs a dedicated national strategy to accelerate the adoption of solar thermal technologies if it is to meaningfully decarbonise its industrial sector and meet long-term climate commitments, according to a new policy roadmap released by The Energy and Resources Institute (TERI).

The report argues that while renewable electricity has gained considerable policy momentum, industrial process heat—one of the largest sources of fossil fuel consumption in manufacturing—remains an under-addressed challenge in India’s clean energy transition. Expanding the use of solar thermal systems could significantly reduce dependence on conventional fuels while lowering industrial emissions across energy-intensive sectors.

The recommendations come as India’s manufacturing sector faces mounting pressure to balance industrial expansion with increasingly stringent sustainability requirements from domestic policymakers and global export markets. Decarbonising industrial heat is expected to become a critical component of the country’s pathway towards net-zero emissions.

The study proposes establishing a dedicated National Solar Thermal Mission to coordinate policy support, institutional capacity and long-term financing required to accelerate commercial deployment. Researchers argue that a structured national programme would provide the policy certainty needed to encourage private investment and scale emerging technologies.

Instead of relying heavily on direct subsidies, the report recommends creating a market-driven financing framework supported by long-tenure, low-interest loans, preferential tax treatment and accelerated depreciation benefits. Such measures, it suggests, would improve project viability while encouraging competition and technological innovation across the sector.

A central recommendation is the creation of a specialised implementation agency responsible for developing demonstration projects and reducing investment risks during the early stages of market development. The proposed mechanism would facilitate industrial adoption by managing project execution, aggregating demand and helping attract private capital until the market reaches commercial maturity.

The report also identifies industrial clusters as ideal locations for pilot deployments, particularly in sectors such as food processing, textiles, dairy and pharmaceuticals, where thermal energy demand remains substantial. Shared infrastructure models within industrial parks could lower project costs while demonstrating commercial feasibility before wider deployment.

Beyond financing, the report highlights the importance of strengthening technical expertise, expanding industry awareness and investing in research and development to build domestic capabilities in solar thermal engineering and system design. Integrating clean thermal technologies into new industrial facilities while progressively retrofitting existing plants is viewed as essential for achieving large-scale emissions reductions.

Experts involved in the study noted that India’s net-zero ambitions will depend not only on expanding renewable power generation but also on addressing emissions from industrial heat, particularly among small and medium-sized enterprises that often face financial and technological barriers to adopting cleaner production systems.

The policy recommendations are expected to contribute to ongoing discussions on industrial decarbonisation by providing a framework for accelerating clean thermal energy deployment while supporting India’s manufacturing competitiveness in an increasingly carbon-conscious global economy.