India Plans To Provide 10 Million Homes With Access To Solar Energy

In February, India implemented a substantial subsidy program aimed at facilitating the installation of rooftop solar panels in different households and apartments. Dubbed PM-Surya Ghar, the initiative is geared towards supplying 30 gigawatt hours of solar power to the nation.

PM-Surya Ghar, as articulated by Prime Minister Surya Ghar, promises to furnish free electricity to an estimated 10 million homes. A key component of the program is the establishment of a national portal, akin to Healthcare.gov, dedicated to streamlining the installation and payment processes.

This program was conceived due to India’s significant lag in rooftop solar installations. Despite the subcontinent’s abundant sunlight, the country only managed to reach 11 gigawatts of rooftop solar power generation by 2022, falling short of the ambitious national target set a decade earlier by 29 gigawatts.

A major hurdle identified by Euronews was the cumbersome approval process, involving up to 21 signatures from various agencies and departments. Additionally, the installation costs often exceeded $5,000, which was more than half of the average yearly income for urban Indians.

Neeraj Kuldeep, from the New Delhi-based think tank Council on Energy, Environment and Water (CEEW), has been monitoring rooftop solar for almost ten years. According to a CEEW report from last year, only about half of Indians are aware of rooftop solar as an energy solution, and many of those who are aware think it’s too expensive. The report, released in November, suggested subsidies for consumers who could benefit from small rooftop solar arrays but can’t afford them.

Kuldeep emphasized that raising consumer awareness is crucial for the growth of rooftop solar. Efficient governance at both federal and state levels, as well as finding the right fit for users’ power needs, are also important factors.

Experts point out that gaining support from state-owned electricity companies, which may view rooftop solar as a threat to their profits, is another challenge. Kuldeep argues that such companies could actually benefit financially by assisting in the installation of rooftop solar, especially in low-consumption homes, as this would reduce their transmission and distribution costs.

Since the launch of a national rooftop solar portal in 2022, which allows consumers to claim government subsidies directly, installations have increased, according to experts and rooftop solar companies.

Mysun, a rooftop solar company in New Delhi, offers a “solar calculator” on its website, allowing potential buyers to estimate their savings based on location and current electricity costs. CEO Gagan Vermani stresses the importance of considering consumer needs and simplifying the process for potential customers rather than just focusing on building solar infrastructure.

Under PM-Surya Ghar, subsidies will cover up to 60% of the installation costs for a 2-kilowatt solar array, reducing to 40% for larger arrays of 3 kilowatts or more. Moreover, low-interest loans at around 7% will assist financially challenged families in embarking on their solar journey. A substantial amount of 750 billion Indian rupees, equivalent to $9 billion, has been allocated for this endeavor.

However, the benefits of PM-Surya Ghar extend beyond cost savings for individual households. Even in places like New Delhi, notorious for cloud cover and smog, solar users have reported substantial reductions in electricity bills during the summer months, with some apartments saving up to $700 monthly.

PM-Surya Ghar is poised to trigger a solar revolution in India. With simplified planning and permitting processes and government subsidies expanding the customer base beyond income constraints, the program is expected to catalyze a boom in the Indian solar market. This initiative not only ensures energy sustainability but also promises economic growth and empowerment for millions of Indian households.

People with rooftop solar panels praise the benefits of cheaper electricity and greater control over their power. Ruchika Chahana, from New Delhi, spent around $5,000 to install solar panels on her home and now saves a significant amount on her electricity bills while feeling good about the environmental impact. Satish Mallya, from Bengaluru, installed solar panels on his apartment complex, reducing electricity costs by $700 a month. Despite bureaucratic challenges, Mallya, along with others, has helped many set up rooftop solar systems, noting the process has become easier. According to Mishra from Solar Square, interest in rooftop solar is growing, and she sees it as a vital part of India’s energy future, believing it’s a significant contribution to nation-building.