The wildfires over the central Indian Himalayan region have attracted the significant attention of environmental scientists. Despite their major and disastrous effects on the environment and air quality, studies on the forest fires’ impacts from a renewable energy point of view are lacking for this region. Therefore, for the first time, we examine the impact of massive forest fires on the reduction in solar energy production over the Indian subcontinent via remote sensing techniques. For this purpose, we used data from the Moderate Resolution Imaging Spectroradiometer (MODIS), the Cloud-Aerosol Lidar with Orthogonal Polarization (CALIPSO), the Satellite Application Facility on support to Nowcasting/Very Short-Range Forecasting Meteosat Second Generation (SAFNWC/MSG) in conjunction with radiative transfer model (RTM) simulation, in addition to 1-day aerosol forecasts from the Copernicus Atmosphere Monitoring Service (CAMS). The energy production during the first quarter of 2021 was found to reach 650 kWh/m2 and the revenue generated was about INR (Indian rupee) 79.5 million. During the study period, the total attenuation due to aerosols and clouds was estimated to be 116 and 63 kWh/m2 for global and beam horizontal irradiance (GHI and BHI), respectively. The financial loss due to the presence of aerosols was found to be INR 8 million, with the corresponding loss due to clouds reaching INR 14 million for the total Indian solar plant’s capacity potential (40 GW). This analysis of daily energy and financial losses can help the grid operators in planning and scheduling power generation and supply during the period of fires. The findings of the present study will drastically increase the awareness among the decision makers in India about the indirect effects of forest fires on renewable energy production, and help promote the reduction in carbon emissions and greenhouse gases in the air, along with the increase in mitigation processes and policies.