Clean energy financing and forest dependence: A socio-ecological perspective on the clean energy–forest degradation paradox in rural India

The expansion of decentralized solar photovoltaic (PV) systems has become central to India's rural electrification and clean energy transition. However, in forest-fringe rural regions, solar adoption often occurs under conditions of livelihood insecurity, limited formal credit access, delayed subsidy support, and continued dependence on forest-based income. This paper conceptualizes the Clean Energy–Forest Degradation Paradox in the Indian context by examining how clean energy adoption may remain embedded within forest-dependent livelihood systems. Unlike generic accounts of renewable energy transition, the study highlights how the Indian manifestation of this paradox is institutionally and economically mediated through Forest Rights Act (FRA)-linked forest governance, non-timber forest product (NTFP)-based cash economies, and subsidy-driven but credit-constrained solar adoption pathways. Using a conceptual and theory-building approach, the paper synthesizes literature on rural solar PV adoption, sustainable livelihoods, forest dependence, energy stacking, and socio-ecological systems. Building on this synthesis, it proposes the Rural Energy–Environment–Livelihood Integration Model (REELIM–India), which integrates three subsystems: energy access, livelihood financing, and ecological–environmental outcomes. The framework proposes that solar PV adoption may reduce kerosene dependence and improve household welfare without necessarily eliminating biomass use, forest-based income dependence, or extractive livelihood practices. Under conditions of weak financing and livelihood vulnerability, forest-derived income may contribute to the purchase, repayment, maintenance, or replacement of solar systems, while continued forest-resource dependence may contribute to localized ecological degradation. The study contributes to energy justice and sustainability-transition literature by integrating technology adoption, livelihood financing, and socio-ecological feedbacks within an India-specific framework. It highlights the need for forest-sensitive clean-energy financing, livelihood diversification, and integrated energy–forest governance to support rural energy transitions that are both socially inclusive and ecologically sustainable.