kerosene-solar-subsidy-swap-executive-summary-432165a926089b3c.pdf

This executive summary proposes a "kerosene to solar subsidy swap" in India, suggesting that government funds currently used for kerosene subsidies be redirected to provide marginalized households with off-grid pico solar PV lighting systems. The document argues that such a transition would reduce indoor air pollution and health risks while leveraging a mature market of affordable, certified solar products.

• The Government of India has an opportunity to reinvest savings from kerosene subsidy reforms into off-grid solar technologies to provide clean lighting for vulnerable households. It is estimated that current kerosene subsidy expenditures could 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 sufficient supply of market-ready pico PV products (systems below 10.999 Wp) capable of replacing kerosene lamps. The study identified nearly 200 products, with 15 meeting specific price, quality, and performance criteria. These shortlisted products are provided by d.light, Greenlight Planet, Omnivoltaic Power Co. Ltd (OV Solar), RAL Consumer Products Ltd., and Barefoot Power, all of whom import integrated products from China.
• Analysis of specific Indian states reveals different dynamics for a subsidy swap. In Uttar Pradesh, particularly in the Bijnor district, kerosene subsidies are often diverted for use as transport fuel, and pico PV products are primarily used as secondary backup devices. In Odisha, there is a strong presence of verified solar products and a high proportion of unelectrified households, making it a good market for pico PV; however, kerosene is used for both lighting and cooking, and the state government opposes reductions in kerosene quotas.
• The solar industry in India co-exists with the electricity grid, as consumers in grid-connected areas purchase solar lighting to mitigate power outages. However, distribution networks remain weaker in rural areas where kerosene use is most prevalent, potentially due to lack of awareness, capital, or market attractiveness.

APA

International Institute for Sustainable Development (n.d.). kerosene-solar-subsidy-swap-executive-summary-432165a926089b3c.pdf. https://www.iisd.org/system/files/publications/kerosene-solar-subsidy-swap-executive-summary.pdf

Chicago

International Institute for Sustainable Development. kerosene-solar-subsidy-swap-executive-summary-432165a926089b3c.pdf. n.d. 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-solar-subsidy-swap-executive-summary-432165a926089b3c.pdf |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{internationalinstituteforsustainabledevelopmentndkerosenesolarsubsidyswapexecutivesummary432165a926089b3cpdf, author = {{International Institute for Sustainable Development}}, title = {{kerosene-solar-subsidy-swap-executive-summary-432165a926089b3c.pdf}}, institution = {International Institute for Sustainable Development}, 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} }