Startups paving the way for an energy future

These emerging companies are reshaping the idea of how energy is generated, stored and consumed. Also, generating employment opportunities across geographies and skill levels.

Startups are accelerating the change in renewable energy. Government initiatives are providing policy clarity and financial nudges, reducing market uncertainty. This has enabled early-stage ventures to invest in research, prototypes and skilled hiring without prohibitive delays. Dushyant Kumar, PV Quality Manager at AXITEC Energy India Pvt Ltd, highlights the rapid progress of the country’s renewable energy transition as a reality that agile startups propel.

Renewable energy transition

The renewable energy transition is no longer a long-term aspiration. It is a fast-moving reality with innovation being boosted by a wave of startups. These emerging companies are reshaping the idea of how energy is generated, stored and consumed. Also, generating employment opportunities across geographies and skill levels.

According to IRENA–ILO data, India’s renewable energy workforce crossed 1.02 million jobs in 2023. This milestone is underpinned by record capacity additions, close to 25 GW. The International Energy Agency (IEA) notes that clean energy now accounts for over 80 per cent of global power-sector investment, with India ranking among the most attractive destinations for such capital.

While large-scale solar parks and wind farms remain the backbone of the sector, the sharpest edges of innovation are emerging from distributed solar solutions along with battery storage systems. The hybrid microgrids, green hydrogen pilots and digital energy platforms are the areas where startups have a natural advantage.

Startups driving the change

Government initiatives from production-linked incentives for manufacturing to national missions on emerging technologies reduce market uncertainty and create fertile ground for small, innovation-driven companies. Venture funds, development finance and infrastructure investors are now more willing to back early-stage renewable energy ventures. Access to this capital enables startups to invest in research, prototypes and skilled hiring without prohibitive delays.

Declining prices of solar modules, batteries, and components have lowered barriers for startups to enter the market. Modular system designs also allow startups to deploy and iterate without the capital intensity once required for large infrastructure projects.

Industrial and commercial consumers, data centres and utilities are seeking tailored clean-energy solutions from microgrids to hybrid storage plants. This demand for customised flexible systems is beneficial for the strengths of startups.

The deep bench of engineers, scientists and returning entrepreneurs, combined with maturing research infrastructure, has allowed startups to tap specialised skills in battery chemistry, power electronics and energy software at competitive costs.

Job creation across the value chain

Startup-led growth creates jobs in multiple segments, including field deployment, manufacturing, research and engineering. Also, in digital and service roles. These roles are emerging in tier-2 and tier-3 cities, industrial clusters and even rural areas where decentralised energy projects are being deployed.

Several states are launching renewable energy skill development programmes tied to local manufacturing hubs and project sites. These initiatives ensure that a trained workforce is available to meet the rapidly evolving demands, further strengthening the ecosystem for startup expansion.

If current trends hold with continued policy support, investment flows and declining technology costs, startups are likely to dominate innovation in distributed renewable systems. Also, in the battery storage, industrial electrification and emerging green fuels sectors.

To conclude, the opportunity is as much about people as it is about technology. By harnessing the energy and agility of startups, India can accelerate its net-zero ambitions while delivering inclusive employment growth from research labs to rural rooftops.