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PM solar scheme faces hurdles in six states despite national rooftop solar push

PM solar scheme faces hurdles in six states despite national rooftop solar push

Time of India7 days ago

Pradhan Mantri Surya Ghar Yojana (
PMSGY
) beneficiaries are facing biggest hurdles in Andhra Pradesh, Karnataka and West Bengal, with less than 5 per cent applications resulting in installations. The scheme is facing major challenges in Meghalaya, Nagaland and Arunachal Pradesh as well, according to official data.
These six states have performed much below the national conversion rate of 24.4 per cent under the scheme which has led to 1.14 million
rooftop solar installations
across the country till date.
The absence of easy financing, despite directives issued by the Centre, is a major bottleneck hindering PMSGY implementation, said experts. Another key reason, according to them, is the lack of trained technicians, which has resulted in poor application to installation conversion rate in the eastern and north-eastern states.
Gujarat, Maharashtra, Uttar Pradesh, Kerala and Rajasthan account for 78 per cent of rooftop solar installations in India. With a 75.7 per cent conversion rate, Gujarat has the highest efficiency with regard to PMSGY implementation.
"High conversion rates indicate effective policy implementation and consumer awareness," said a study by The Energy and Resources Institute (
TERI
).
The Centre approved a ₹75,021 crore outlay for PMSGY in February 2024. It aims to provide up to 300 units of electricity for free to 10 million Indian households which opt to install rooftop solar generation projects. The scheme offers 60 per cent subsidy on the cost of rooftop solar projects (up to 2 kW capacity) and 40 per cent of additional system cost for those with 2-3 kW capacity.
"Bank loan is one of the major hurdles for marginalised segments seeking benefits under PMSGY as it is taking more time than envisaged," Alekhya Datta, associate director, electricity and renewables division, TERI, told ET.

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