Kerosene to Solar PV Subsidy Swap

The report argues that India can accelerate universal household electrification by redirecting kerosene subsidies toward pico solar PV products. It identifies a surfeit of market-ready, certified solar lanterns that can replace kerosene lamps at a lower or equal cost. Analysis of Uttar Pradesh and Odisha suggests that while Odisha presents a strong market scenario due to high kerosene dependence, challenges include the use of kerosene for cooking and government opposition to quota reductions. In Uttar Pradesh, the report notes that kerosene subsidies are often poorly targeted, with fuel being diverted for transport.

• Government expenditures on kerosene subsidies are significant enough to fund the full capital cost of either 350 million entry-level solar lanterns over 1.5 years or 97 million mid-level solar lanterns over two years.
• There is a wide availability of market-ready pico PV products capable of replacing kerosene lamps; the study identified nearly 200 products, with 15 meeting specific price, quality, and performance criteria to be affordable and reliable replacements.
• In Odisha, the high proportion of unelectrified households and their dependence on kerosene create a favorable market for pico PV products, and the existing Public Distribution System (PDS) could be used to facilitate the transition.
• A subsidy swap in Odisha is complicated by the fact that kerosene is used for both lighting and cooking, and the solar PV solution only addresses lighting. Additionally, the state government opposes reductions in kerosene quotas.
• Consultations in the Bijnor district of western Uttar Pradesh revealed that kerosene subsidies are poorly targeted, as the fuel is frequently used for transport rather than lighting or cooking.

APA

International Institute for Sustainable Development (2018). Kerosene to Solar PV Subsidy Swap. https://www.iisd.org/system/files/publications/kerosene-solar-subsidy-swap-executive-summary.pdf

Chicago

International Institute for Sustainable Development. Kerosene to Solar PV Subsidy Swap. 2018. https://www.iisd.org/system/files/publications/kerosene-solar-subsidy-swap-executive-summary.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Kerosene to Solar PV Subsidy Swap |date=July 2018 |url=https://www.iisd.org/system/files/publications/kerosene-solar-subsidy-swap-executive-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2018kerosene, author = {{International Institute for Sustainable Development}}, title = {{Kerosene to Solar PV Subsidy Swap}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = jul, url = {https://www.iisd.org/system/files/publications/kerosene-solar-subsidy-swap-executive-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }