Why is India's rooftop solar program falling short of targets?

The program is falling short due to loan delays and reluctance from banks, as well as hesitance from state utilities to promote the scheme.

What are the main obstacles to residential solar panel adoption in India?

Obstacles include banks rejecting or delaying loans due to documentation issues and state utilities' concerns about losing revenue from grid sales.

What is the PM Surya Ghar scheme in India?

The PM Surya Ghar is a subsidy program launched in February 2024 to promote residential solar panel installations, covering up to 40% of costs.

Home / Environment / India's Solar Push Stalls Amid Loan Woes

India's Solar Push Stalls Amid Loan Woes

16 Feb

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Summary

Rooftop solar installations lag behind target despite significant subsidies.
Loan delays and bank reluctance hinder adoption of residential solar panels.
State utilities' concerns over revenue loss slow down rooftop solar promotion.

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 Vendors report that customers sometimes face rejections based on past electricity payment records or outdated land ownership documents.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.