Solar thermal technology can cut industrial carbon emissions and costs in Indian manufacturing

Solar thermal energy offers a practical way to reduce carbon emissions from industrial process heat, which currently relies heavily on fossil fuels. A policy brief from The Energy and Resources Institute (TERI) highlights that sectors like pharmaceuticals, food processing, dairy, and textiles could benefit from solar thermal systems for steam, hot water, and cooling. The technology costs significantly less than diesel, natural gas, or furnace oil for producing steam, and replacing coal-fired boilers with solar thermal can cut up to 35,000 tonnes of CO2 per year per boiler. Despite abundant solar resources in India, adoption remains low due to high upfront costs, lack of tailored financing, and limited awareness. TERI recommends a National Solar Thermal Mission to address these barriers and support the transition. With policy backing, solar thermal could become a key tool for decarbonizing manufacturing without waiting for hydrogen or full grid electrification.