Rooftop solar scheme is still charging up almost 2 years after launch

Gujarat and Kerala shine bright but other states trail in PM Surya Ghar Yojana

A government scheme to provide up to 300 units of free electricity per month to 10 million households by facilitating the installation of rooftop solar systems is still charging up 20 months after its launch. Installations are widespread only in some states, leading to uneven growth.

 

Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGY) was launched in February 2024 to increase rooftop solar capacity and enable residential households to generate their own electricity. The scheme has to complete its targets by FY27, but that seems to be an uphill task considering its pace of progress.

 

Of the 10 million households targeted, 21.23 per cent have rooftop solar systems as of today. As many as 74 per cent of households with systems installed are in Gujarat, Maharashtra, Uttar Pradesh (UP) and Kerala. Furthermore, only 21 per cent of targeted installation capacity (30 Gigawatt) has been completed.

 

Only one out of four applications by households to put up rooftop solar systems resulted in installation at the national aggregate level, according to an analysis of data from the PMSGY portal. The installation-to-application ratio is 26.54 per cent. 

 

Only a handful of states have a ratio of more than 50 per cent: Gujarat (80.22 per cent), Kerala (72.54 per cent), Uttarakhand (58.9 per cent), Madhya Pradesh (53.83 per cent) and Mizoram (51.02 per cent).

 

Andhra Pradesh, Karnataka, Jharkhand and West Bengal have a sub-10 per cent ratio, underscoring the challenges in translating demand into actual rooftop solar capacity. 

 

The average capacity per rooftop solar installation also varies across states: Goa leads with an average installation capacity of 8.66 Kilowatt, followed by Delhi (4.94 Kw) and Punjab (4.59 Kw).

 

Gujarat accounts for more than 27 per cent of all residential rooftop solar installations in the country. Maharashtra and UP follow with shares of 18.53 per cent and 15.08 per cent. Kerala and Rajasthan are other notable players. 

Gujarat and Kerala are leaders due to existing mature solar ecosystems, a strong vendor base and consumer awareness. Moreover, net-metering infrastructure and related policies are major reasons for states’ varying levels of success in rooftop solar adoption.