The grant is part of a new solar project 'SUNRISE' aimed at developing printed photovoltaic cells and new manufacturing processes which can be used to make solar energy products in India.
These will then be integrated into buildings in at least five villages of India, allowing them to harness solar power to provide their own energy and run off grid.
The programme is part of the Swansea University led SPECIFIC Project, which recently opened the UK's first "energy-positive classroom" and revolves around a "buildings as power stations" concept.
"The Swansea team will be working closely with our partner universities in the UK and India. Our hope is that if we can show this works on five villages in India, then it could be rolled out to other buildings in India and around the world," he said.
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The team's concept of a building as a power station has been working in the form of its first energy-positive classroom on the Swansea University Bay campus.
"Designed and built by the SPECIFIC project, the classroom can run off grid. Electricity is generated by a steel roof with integrated solar cells," the university said in a statement.
Some of the other universities which are part of the consortium include Oxford, Cambridge, Brunel and Imperial College London.
"From healthcare to green energy, the successful projects receiving funding highlight the strength of the UK's research base and our leadership in helping developing countries tackle some of the greatest global issues of our time," said Jo Johnson, UK minister for universities and science.
"At a time when the pace of scientific discovery and innovation is quickening, we are placing science and research at the heart of our Industrial Strategy to build on our strengths and maintain our status as science powerhouse," Johnson said.
The plan is that it will encourage local industries to manufacture affordable prefabricated buildings, adapted for their environment, that can generate, store and release their own power.