The Pradhan Mantri Surya Ghar Yojana has sparked rapid adoption of rooftop solar across millions of households, with financial incentives and streamlined processes driving the initiative’s success, despite ongoing state-level challenges.
India’s ambitious solar rooftop initiative is gaining significant momentum, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analysis.
The central government’s Pradhan Mantri Surya Ghar Yojana (PMSGY), launched in February 2024, has attracted widespread interest with 13 million registrations and 1.8 million applications in its first six months, resulting in 385,000 installations and 1.8 gigawatts (GW) of new capacity.
The PMSGY aims to install 30 GW of rooftop solar capacity across 10 million households within three years, backed by a scheme outlay of Rs75,021 crore. With this push, India is aiming to contribute to its overall renewable energy target of 500 GW by 2030.
“Decentralised energy, particularly rooftop solar, will play a key role in achieving energy independence and security in India,” said Vibhuti Garg, Director for South Asia at IEEFA. The initiative has been bolstered by increased financing options, with over 25 financial institutions now supporting the market, compared to only a handful in previous years.
Financial incentives and streamlined processes have helped drive this rapid uptake. The report highlights how tie-ups between financiers and project-executing entities are creating integrated solutions for consumers, further accelerating adoption.
However, challenges persist, particularly with policy inconsistencies across states, technical issues with the National Portal for Rooftop Solar (NPRS), and the high costs of domestically produced solar modules. Despite these obstacles, industry experts are optimistic, with falling solar module prices and strong government backing positioning rooftop solar as an attractive investment for households and businesses alike.
Gaurav Upadhyay, Energy Finance Analyst at IEEFA, emphasised that the success of rooftop solar will depend on continued collaboration among regulators, financiers, developers, and consumers to ensure a robust and resilient decentralised energy market.