Most Indian MSMEs still burn coal, biomass, furnace oil or gas to raise process heat. Concentrated Solar Thermal (CST) replaces part of that fuel with heat from the sun — hot water, thermic fluid or steam at up to 200 °C, feeding the boiler and process lines a unit already operates.
This UNIDO project, funded by the Global Environment Facility and executed with the Ministry of MSME, helps enterprises make that switch: a free technical assessment, a detailed project report, and a financial incentive covering 50% of project cost. Close to 10,000 m² of collector area is already operating in silk reeling, pharmaceuticals, dairy, leather and textiles.
Emission Reduction
Non-fossil energy capacity by 2030
Industrial Sectors
Renewable power targets do not reach the boiler. Concentrated Solar Thermal displaces the fuel Indian MSMEs burn to raise process heat, and in doing so contributes to seven Sustainable Development Goals.
Directly advances
Substituting solar heat for coal, biomass, furnace oil and gas in MSME process heating — the segment least reached by renewable energy programmes.
Retrofitting existing MSME plant with clean process-heat technology, and building the domestic supply chain that makes retrofit repeatable.
Direct emission reduction from displaced fossil fuel, and a policy pathway for thermal decarbonisation within India's MSME programmes.
Also contributes to
Less combustion in industrial clusters — cleaner local air, lower worker exposure.
A trained CST installation and maintenance workforce; 45+ operators certified.
25–40% less purchased fuel per unit of output at demonstrated sites.
GEF finance, UNIDO technology transfer, Ministry execution, industry co-investment.
National alignment
Reduction in the emissions intensity of GDP against 2005 levels. Industrial fuel substitution counts directly.
Process heat is among the harder segments to abate, and needs demonstrated options well before 2070.
Around two-thirds of industrial energy demand is heat. National renewable targets are written in gigawatts of electricity and do not reach it.
Delivery to date
Commissioned
Project target
Capital incentive
MSME clusters
Projects in build
Figures as at 31 December 2025 · target revised and approved by the Project Steering Committee
A site visit, solar resource and process-heat assessment, and a detailed project report at no cost to you. Twenty-five feasibility studies completed so far with TERI and IIT Guwahati.
Half your project cost, up to ₹2.5 crore — now covering thermal storage, piping and heat pumps, not just collectors. BOOT arrangements are eligible if you prefer no upfront capital.
Three suppliers empanelled against published criteria on turnover, experience and qualified staff — or use your own supplier against three competitive quotations.
Operator training, O&M manuals and performance monitoring, so the system still delivers in year five. Over 45 operators trained to date.
Supplier empanelment, technical standards and quality infrastructure, so Indian MSMEs can buy CST equipment with confidence from Indian manufacturers.
The national CST Roadmap, plus reviews of boiler regulations, building codes and manufacturing incentives — clearing the regulatory obstacles to industrial solar heat.
Technology packages, DPR templates, application guidelines and case studies, delivered through 32 training and awareness events across four zones in 2026.
Ankleshwar, Gujarat
Medak & Hyderabad, Telangana
Vellore, Tamil Nadu
Dibrugarh & Jorhat, Assam
Surat, Gujarat
