Solar rooftop capacity jumps 50% in 6 months

Nearly 400,000 new residential rooftop solar connections have collectively added 1.8 GW in capacity, taking India’s residential rooftop capacity to 3.2 GW, or 27% of the nation’s total 11.9 GW rooftop capacity as of March 2024. The commercial and industrial sectors account for around 60% of this capacity.

The PM Suryaghar Muft Bijlee Yojana, launched in February, has boosted India’s rooftop solar capacity by over 50% in six months. As per a report by JMK Research and Analytics, nearly 400,000 new residential rooftop solar connections have added 1.8 GW in capacity, taking India’s residential rooftop capacity to 3.2 GW, or 27% of the nation’s total 11.9 GW rooftop capacity as of March 2024. The commercial and industrial sectors account for around 60% of this capacity.

The scheme, introduced in the Union Government’s interim Budget presented on February 1, aims to provide free electricity to 1 crore households through rooftop solar systems. With a total outlay of Rs. 75,021 crore, the scheme aims to tackle high installation costs by increasing subsidies for solar modules from 40% to 60% and offering loans at a 7% minimum interest rate, making rooftop solar more accessible to households. The initiative targets an increase in residential rooftop solar capacity to 30 GW by 2027, requiring an annual addition of 8-10 GW from FY25-FY27.

According to the report, “The surge in consumer interest is supported by improved financing availability and enabling regulatory and implementation support from state regulators. Almost every state in India provides net metering to residential customers installing rooftop solar systems.”

Experts consider the outlook promising, driven by increased government support, declining module costs, and rising consumer awareness.

However, despite the optimism, challenges remain. India’s limited domestic production of photovoltaic (PV) modules may constrain the availability of required components. Adoption may also be hindered by economic factors, as the scheme primarily benefits wealthier, creditworthy households, potentially limiting reach among smaller electricity consumers. High transportation costs for panels in remote areas, such as northeastern states and islands (including Lakshadweep and Andaman & Nicobar), further complicate expansion. Analysts suggest the full impact of the scheme will become evident only after one year.