Delhi's New Fossil Fuel Ban and Its Impact on Air Pollution and Solar Energy
Team Finance Saathi
28/Mar/2025

What's covered under the Article:
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Delhi to ban fossil fuel two-wheelers from August 2026 and CNG autos from 2025 to control air pollution.
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Air pollution is reducing solar energy efficiency in India, causing up to 30% power losses.
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IIT Delhi study highlights urgent need for climate change mitigation to safeguard solar power generation.
The rising air pollution in Delhi and the National Capital Region (NCR) has forced authorities to take drastic steps. With Delhi's air quality among the worst in the world, the government is set to ban the registration of new fossil fuel-powered two-wheelers starting August 2026. Additionally, new CNG-powered autorickshaws will be prohibited from August 2025. The Supreme Court had earlier mandated a shift from petrol and diesel autos to CNG to curb pollution. Now, older CNG autos over 10 years old must be scrapped or retrofitted with electric powertrains.
To further control pollution, the Delhi government has introduced a rule that limits fossil fuel-powered vehicle registrations to two per household. From 2025 onwards, any additional four-wheeler registration must be an electric vehicle (EV).
However, while these steps aim to tackle local emissions, they don’t eliminate pollution but shift it elsewhere. Electric vehicles still require power, and in India, a majority of electricity is generated from coal, causing indirect emissions. The ideal solution is a combination of renewable energy sources like solar power, electric vehicles, and an efficient mass transit system.
Pollution's Adverse Impact on Solar Power in India
Ironically, the very air pollution Delhi is trying to curb is now impacting India's solar energy sector. Smog, dust, and high temperatures are reducing the efficiency of solar panels, significantly affecting power generation.
A recent IIT Delhi study predicts that India’s solar power potential could decline by 600-850 GWH between 2041-2050 due to pollution and climate change. The study used historical data from 2008-2014 and global climate models to assess scenarios where pollution control was weak versus when only climate change mitigation was weak. The findings revealed that solar power output will suffer more without strong climate change mitigation policies.
Key Findings of the IIT Delhi Study:
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Suspended particulate matter (SPM) concentrations over 100 micrograms per cubic meter reduce solar panel efficiency by 15-25%.
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During peak winter pollution, solar power installations in North India have seen up to a 30% drop in power generation.
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Atmospheric dust settles on solar panels, further reducing efficiency and increasing cleaning requirements.
With most solar farms located in water-scarce regions, frequent cleaning of panels has created conflicts over water usage with farmers and local residents. Some solar plants are adopting vacuum-based or dry cleaning technologies, but these are still limited.
The Smog Effect: Real-Time Impact on Solar Energy Output
The real impact of pollution on solar energy is already visible. According to Solargis, a solar data provider, Delhi and North India saw persistent smog for over 20 days in January 2024, causing a 30-50% drop in solar irradiance. This led to significant losses in solar power output across the region.
Urgent Need for Holistic Pollution Control and Climate Policies
Experts argue that knee-jerk reactions like banning certain vehicles or fuel types will only offer temporary relief. Instead, India needs a comprehensive climate change mitigation and pollution control strategy. A long-term policy approach should include:
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Expanding renewable energy sources beyond just solar to include wind, hydro, and nuclear power.
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Implementing stricter industrial emissions control and reducing coal dependency in power generation.
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Encouraging mass adoption of electric vehicles while ensuring the power they use comes from clean energy sources.
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Investing in smart grids and better energy storage solutions to optimize solar power usage even in low sunlight conditions.
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Developing better dust and smog management strategies to prevent solar panel efficiency losses.
According to the 2024 World Air Quality Report by IQ Air, 13 of the world's top 20 most polluted cities are in India, with Delhi ranked as the most polluted capital city. Studies show that air pollution reduces life expectancy by an average of 5 years, proving that the cost of inaction is not just economic but also human.
The Way Forward: Strengthening Renewable Energy and Policy Interventions
To truly address the pollution crisis and ensure India's solar power sector remains viable, policymakers must take decisive, long-term action. By focusing on clean energy expansion, pollution control, and sustainable vehicle transition, India can create a future where economic growth does not come at the cost of public health and environmental sustainability.
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