What Are Solar Panels and How Do They Help Rural India?

India is a land of villages, with over 65% of its population living in rural areas. While cities are rapidly adopting modern technologies, many villages still struggle with basic infrastructure like electricity. This is where solar panels and solar systems come into the picture as a sustainable and affordable solution.

In this blog, we'll explain what solar panels are, how solar systems work, and why they are such a game-changer for rural India. We’ll also highlight how companies like CBSL (Capital Business Systems Ltd) are helping transform rural lives through their innovative solar solutions.

What Are Solar Panels?

Solar panels are devices that convert sunlight into electricity. They are made of small units called solar cells, typically made from silicon. When sunlight hits these cells, it creates an electric current — this is known as the photovoltaic effect.

Solar panels can be installed on rooftops, open land, or even on mobile setups like solar-powered vans. They can power anything from a single light bulb to an entire school, clinic, or bank.

A complete solar system includes:

• Solar panels

• Inverter (to convert DC to AC power)

• Battery (for energy storage)

• Mounting structure and wiring

Access to reliable electricity remains a challenge in some parts of India. While reports show that electricity access in India rose from 56% in 2000 to 97% in 2020, around 2.4% of households still remain unelectrified, primarily in rural areas. Solar systems, especially when deployed in off-grid settings, offer a practical and sustainable solution to bridge this energy gap and bring power to remote communities.

Why Are Solar Panels Important for Rural India?

Many rural areas still face issues like:

• Frequent power cuts

• No access to electricity

• High diesel generator costs

• Limited infrastructure for grid connections

In such cases, solar panels and solar systems offer an ideal alternative. They’re eco-friendly, reliable, and require minimal maintenance.

Types of Solar Systems Used in Rural India

There are mainly two types of solar systems used in villages:

1. On-Grid Solar Systems

These are connected to the main electricity grid. When the solar panels produce excess power, it can be sent back to the grid, reducing electricity bills. However, they don’t work during power cuts.

Best suited for: Semi-urban or developed rural areas with grid access.

Note: Rural electrification in India has reached nearly 96.7% household coverage, showcasing significant progress in grid connectivity. However, it's worth noting that only 0.33% of connected households rely on off-grid solutions like standalone solar systems. This highlights the growing importance and potential of grid-connected solar systems in areas with established electricity infrastructure.

2. Off-Grid Solar Systems

These work independently of the power grid. They come with batteries to store electricity for use at night or during cloudy days.

Best suited for: Remote villages without electricity or where power cuts are frequent.

CBSL focuses primarily on off-grid solar systems for rural India, ensuring energy access even in the most disconnected parts.

 

Benefits of Solar Panels and Solar Systems in Rural Areas

Using solar panels and solar systems in rural India offers numerous benefits:

1. Reliable Electricity

No more dependency on grid power or kerosene lamps. Villagers get consistent electricity for homes, schools, banks, and clinics.

2. Cost Savings

Once installed, solar panels drastically cut down electricity costs. There’s no need for diesel, and maintenance is minimal.

3. Environmental Impact

Solar systems reduce the use of polluting fuels like diesel and kerosene. They help lower carbon emissions and support India’s green energy goals. In fact, renewable energy—including solar—accounted for 71.5% of new power capacity added in Q1 2024, signifying a sharp pivot away from coal. This trend underscores India’s commitment to a cleaner, more sustainable energy future.

4. Job Creation

The installation and maintenance of solar systems create employment for local technicians and youth trained in solar technology.

5. Empowering Women and Children

With reliable electricity, women can work longer hours, and children can study at night — increasing productivity and educational outcomes.

Fun Fact:

Did you know? One NGO-backed program in Madhya Pradesh is estimated to have generated around 8 million extra children’s study hours annually. 

CBSL’s Contribution to Solar-Powered Rural Transformation

Capital Business Systems Ltd (CBSL) is playing a vital role in bringing solar systems to underserved areas. With its wide experience in automation and technology solutions, CBSL is now helping rural communities become energy self-reliant.

Here are a few ways CBSL is making a difference:

1. Solar-Powered Banking Services

CBSL installs solar panels at rural banking kiosks, allowing villagers to access banking services even in areas with unstable electricity. These solar systems power everything from computers to biometric scanners and printers.

2. Solar-Powered Education Centers

Many government and low-income private schools in villages suffer due to power issues. CBSL equips such schools with solar systems, helping them run smart classes, fans, lights, and even e-learning modules uninterrupted.

3. Solar Solutions for Rural Healthcare

Power cuts can severely impact health services in rural clinics. CBSL’s solar panels ensure 24/7 electricity for basic medical equipment, refrigeration for vaccines, and lighting for emergencies.

Real-Life Example: CBSL’s Solar Banking Kiosk in Bihar

In Bihar, CBSL set up a solar-powered banking kiosk in a village where grid electricity was available only a few hours a day. With CBSL's solar panels installed, the kiosk now functions all day, offering uninterrupted banking services to over 1,000 people. Elderly pensioners and daily wage workers no longer have to travel 20 km to the nearest bank.

Challenges and the Road Ahead

While the benefits are clear, implementing solar systems in rural India still comes with challenges like:

• High upfront costs

• Lack of awareness

• Limited technical know-how

This is where companies like CBSL are essential. They not only provide the technology but also train local communities on how to use and maintain solar panels, making the solution sustainable in the long run.

For a complete guide to Solar Panels and Solar Systems for Sustainable Infrastructure, check our comprehensive blog here. 

Conclusion

Solar panels and solar systems are revolutionizing the way rural India accesses electricity. They offer a clean, affordable, and long-lasting solution to one of the biggest challenges facing the country’s villages today.

With dedicated efforts from companies like CBSL, solar energy is no longer a dream but a reality lighting up homes, schools, banks, and clinics in the remotest corners of India.

As India moves towards a sustainable future, solar panels will continue to play a vital role not just as a source of electricity but as a tool for empowerment and development.

If you need more info on solar solutions, check out CBSL's solar solutions page today.

Frequently Asked Questions

1. How is solar energy used in rural areas?

Solar energy in rural areas is used to power banks, ATMs, schools, irrigation systems, health centers, and streetlights. CBSL enables rural institutions to operate smoothly by installing solar panels that provide uninterrupted power even during outages. This supports digital banking, education, and essential services where grid supply is weak or inconsistent.

2. How is solar energy changing rural India?

Solar energy is driving real change in rural India by improving energy access, reducing power costs, and enhancing the reliability of critical services. CBSL’s solar installations empower rural banks, educational institutions, and public offices to function without disruptions, enabling greater financial inclusion, better governance, and improved quality of life.

3. What is the solar panel scheme for farmers in India?

The PM-KUSUM scheme offers financial support to farmers to install solar-powered pumps and small solar plants. CBSL helps eligible beneficiaries adopt solar energy through compliant EPC solutions. This reduces diesel usage, cuts electricity bills, and promotes self-sufficient farming powered by clean, renewable energy under a government-backed framework.

4. Why is solar energy becoming popular in rural and remote areas of India?

Solar energy is gaining popularity in rural India due to its affordability, minimal maintenance, and independence from unreliable grid connections. CBSL provides tailored solar systems that ensure 24/7 power for essential rural operations. Government incentives and rising awareness are further accelerating adoption in hard-to-reach areas.