India's Solar Push Stalls Amid Loan Woes

Prime Minister Narendra Modi's initiative to expand rooftop solar power in India is experiencing delays, hindering the nation's clean energy ambitions. The PM Surya Ghar scheme, launched in February 2024 with subsidies covering up to 40% of costs, has seen just 2.36 million residential installations, falling short of the 4 million target by March. This shortfall is attributed to multiple factors, including difficulties in obtaining bank financing and reluctance from state-owned utilities.

Banks are reportedly rejecting or delaying loans for rooftop solar installations due to issues such as incomplete documentation and concerns over loan defaults. Vendors report that customers sometimes face rejections based on past electricity payment records or outdated land ownership documents. Furthermore, state utilities are reportedly not actively promoting rooftop solar due to fears of revenue loss as consumers transition away from the grid.

These challenges underscore a broader struggle to meet India's goal of nearly doubling its clean energy capacity to 500 gigawatts by 2030. The delays in rooftop solar adoption may necessitate a continued reliance on coal-fired power plants, impacting the country's climate and energy transition strategies.