The proposed investment forms a part of a £10bn trade deal signed between the UK and India during Indian Prime Minister Narendra Modi’s visit to the UK.
UK Trade and investment Minister Lord Maude said: "The UK and India have a strong, successful trade relationship. Prime Minister Modi’s visit to the UK this week demonstrates our commitment and ambition to collaborate further.
"Both countries have a wealth of talent and expertise to share and I am pleased to see so many UK and Indian companies announcing deals this week. By working in partnership we can deliver real benefits and job creation for both of our economies."
The investment is expected to create over 300 solar jobs in India, as wells as 300 UK jobs. It will also create jobs in related industries, such as construction and steel fabrication to facilitate the installation of the new sites.
Lightsource will set up solar power projects in partnership with reputable Indian companies.
UK Energy and Climate Change Secretary Amber Rudd said: "The UK and India’s partnership on energy is going from strength to strength. We share world-class expertise in research and innovation. The UK’s experience in green finance and technology in particular makes us well – placed to work together to promote secure, affordable and sustainable supplies of energy and address climate change.
"The upcoming talks in Paris will be a crucial moment in the fight against climate change and I am pleased to be able to work closely with India to ensure that the deal we secure helps to keep the below 2 degree limit on global warming within reach."
Additionally, the UK Climate Investments joint venture with the Green Investment Bank will invest up to £200m in renewable energy and energy efficiency in India and Africa.
Lightsource recently closed £284m in refinancing for 101MW of solar projects in the UK.
Image: Lightsource will set up solar power projects in partnership with reputable Indian companies. Photo: courtesy of Lightsource Renewable Energy Ltd.
