Uttar Pradesh is emerging as a hub for green industries with its ambitious solar park initiatives, driving sustainable energy for factories. The state’s solar projects, backed by government policies, aim to reduce carbon emissions and energy costs for industries. With significant investments and infrastructure development, UP is fostering a clean energy ecosystem, creating jobs, and supporting India’s renewable energy goals.
Uttar Pradesh Harnesses Solar Power for Industrial Growth
Uttar Pradesh (UP), India’s most populous state, is making significant strides in its renewable energy sector, particularly through the development of solar parks aimed at powering factories and industrial units. The state government, in alignment with India’s national renewable energy targets, has prioritized solar energy to drive a green industrial revolution, reducing reliance on fossil fuels and fostering sustainable economic growth.
In recent years, UP has launched several solar park projects under the state’s Solar Energy Policy, updated in 2022, which aims to achieve 22,000 MW of solar power capacity by 2026-27. These solar parks are strategically designed to cater to the energy demands of industrial corridors, offering a reliable and cost-effective alternative to traditional electricity sources. As of August 2025, UP has operational solar parks with a combined capacity of over 2,000 MW, with several more under development, according to data from the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).
One of the flagship projects is the Bundelkhand Solar Park, located in Jalaun district, which has a capacity of 600 MW and is powering industrial units across the region. The park, developed in collaboration with the Solar Energy Corporation of India (SECI), has attracted investments worth ₹3,500 crore and created over 1,500 direct and indirect jobs. Another key initiative is the Jhansi Solar Park, which is set to expand to 800 MW by 2026, catering specifically to factories in the Jhansi industrial belt. These projects are part of the state’s broader plan to establish 10 solar parks with a cumulative capacity of 6,000 MW by 2027, as outlined by UPNEDA.
The state’s focus on green industries is driven by a combination of policy incentives and infrastructure development. The UP government offers subsidies, tax exemptions, and single-window clearances for solar projects, making it easier for private players to invest. Companies like Tata Power Solar, Adani Green Energy, and Waaree Energies have set up large-scale solar installations to supply clean energy to factories producing textiles, cement, and electronics. For instance, a textile factory in Kanpur recently transitioned to 100% solar energy, reducing its electricity costs by 30% and cutting carbon emissions by an estimated 2,000 tons annually, according to a report by the Confederation of Indian Industry (CII).
UP’s solar parks are also integrating advanced technologies like energy storage systems and smart grids to ensure uninterrupted power supply for industries. The Mirzapur Solar Park, with a capacity of 400 MW, incorporates battery storage to address the issue of morning peak demand, a common challenge for industrial units. This aligns with India’s push for energy storage solutions, as highlighted in the Union Budget 2025-26, which allocated ₹10,000 crore for renewable energy storage projects.
The economic impact of these initiatives is significant. UP’s solar parks are expected to attract investments of over ₹20,000 crore by 2027, creating approximately 10,000 jobs in construction, operation, and maintenance. Additionally, the state’s focus on green hydrogen production, powered by solar energy, is opening new avenues for industries. A pilot project in Gorakhpur, launched in June 2025, is producing green hydrogen for use in fertilizer manufacturing, reducing reliance on imported natural gas.
However, challenges remain. Land acquisition for solar parks has faced resistance from local communities, particularly in rural areas where agricultural land is repurposed. The state government is addressing this through community engagement programs and compensation schemes, such as the local development fund established in Bundelkhand, which has improved village infrastructure. Another challenge is the dependency on imported solar components, particularly polysilicon and wafers, which account for 60% of India’s solar imports, primarily from China, as per a 2025 report by the Ministry of New and Renewable Energy (MNRE). To counter this, UP is promoting local manufacturing under the Atmanirbhar Bharat initiative, with companies like Rayzon Solar setting up a 2 GW module and cell manufacturing facility in Noida.
The environmental benefits are equally compelling. UP’s solar parks are estimated to reduce carbon dioxide emissions by 5 million tons annually, contributing to India’s Paris Agreement commitment to cut emissions intensity by 45% by 2030. The state’s initiatives also align with the PM Surya Ghar: Muft Bijli Yojana, which promotes rooftop solar for small-scale industries, enabling them to sell surplus energy to the grid.
As UP continues to expand its solar infrastructure, it is positioning itself as a leader in India’s green energy transition. The state’s efforts are not only powering factories but also paving the way for a sustainable industrial ecosystem that balances economic growth with environmental responsibility.
Disclaimer: This article is based on information sourced from the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), the Ministry of New and Renewable Energy (MNRE), the Confederation of Indian Industry (CII), and recent news reports. Data and figures are accurate as of August 2025. Readers are advised to verify details with official sources for the latest updates.