Prime Minister Narendra Modi’s push to accelerate the rollout of rooftop solar power is falling short of targets despite heavy subsidies due to loan delays and limited support from state utilities, vendors and analysts say.
The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030, and come as the government plans to suspend clean energy tendering targets amid a backlog of awarded projects yet to be built.
India’s Ministry for New and Renewable Energy created its subsidy programme for residential solar panel installations in February 2024, covering up to 40% of the costs.
But residential installations at 2.36 million are well below the ministry’s target of four million by March.
“Banks’ reluctance to lend and states’ hesitance to promote the schemes could derail India’s efforts to transition away from coal,” said Shreya Jai, the lead energy analyst at research firm Climate Trends in New Delhi.
Roughly three in five rooftop solar applications filed on the scheme’s website are yet to be approved while about 7% have been rejected, according to government data on the programme.
State-owned utilities are also not promoting rooftop solar as much, as they are concerned about the loss of revenue as sales move off the electric grid.
“Wealthier households typically have high electricity consumption, tariffs and reliable roof access. When they shift from the grid, it leaves a larger financial burden,” said Niteesh Shanbog, an analyst at Rystad Energy. — Reuters
