The PM Surya Ghar Muft Bijli Yojana is a significant government initiative that was launched in February 2024, specifically designed to promote residential rooftop solar installations across the nation. This scheme aims to assist households in embracing solar energy, ultimately reducing electricity costs while enhancing renewable energy capacity in India.
Since the inception of the scheme, the rooftop solar capacity in India has witnessed a remarkable growth of over 50% within just six months. Approximately 400,000 new installations have contributed an impressive 1.8 gigawatts (GW) to the national grid. As of March 2024, the total rooftop solar capacity in the country stands at around 3.2 GW, which represents 27% of India’s total rooftop solar installations.
To enhance the adoption of solar energy, the PM Surya Ghar scheme provides various financing options for households. These include loans with interest rates as low as 7% and a buyback option for surplus power generated. Increased participation from both private and public sector banks has also improved the availability of financing, making it easier for households to invest in solar systems.
The Indian government has set an ambitious target of installing 30 GW of residential rooftop solar capacity by March 2027. In line with current growth trends, India will need to add between 8 to 10 GW annually to meet this target, which translates to installing rooftop solar systems in over 10 million homes.
The PM Surya Ghar initiative aligns closely with India’s renewable energy objectives and net-zero commitments by amplifying the reliance on clean energy sources. The widespread adoption of rooftop solar can significantly reduce the demand on the national grid, lower greenhouse gas emissions, and make energy more affordable for households.
Despite the initiative's potential, significant challenges hinder the expansion of rooftop solar installations. One of the primary concerns is the limited availability of domestically manufactured solar panels and modules, particularly for residential applications. As a substantial portion of the equipment is imported, the high initial costs remain a barrier for many potential users. Furthermore, the adoption rate among small and medium-scale consumers is slower, partly due to a lack of awareness.
The government is actively supporting the implementation of the PM Surya Ghar scheme by simplifying regulatory processes and introducing various incentives to facilitate solar installations. Most states have adopted net metering policies, allowing homeowners to sell surplus energy back to the grid. This aspect of the scheme makes investing in solar energy more attractive for households.
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