India’s Rooftop Solar Initiative Faces Challenges

The PM Surya Ghar Muft Bijli Yojana (PMSGMBY) was launched in February 2024 to promote rooftop solar installations across India. The initiative aims to benefit 1 crore households by providing subsidies of up to 60% of installation costs. As of November 21, 2024, over 25 lakh households applied, but only 23.8% of these requests were approved. This low conversion rate marks important challenges in the implementation process.

Overview of the Scheme

The PMSGMBY is designed to encourage the adoption of solar energy in residential areas. It provides financial support to households looking to install solar panels. The scheme is a part of India’s broader commitment to renewable energy and reducing carbon emissions.

Application and Approval Process

The journey from application to installation involves several steps. Households must complete a full application, which includes site visits, vendor selection, and net metering applications. Each of these steps can introduce delays and complications, affecting the overall conversion rate.

Current Statistics

As of late November 2024, 2,582,535 applications were fully completed. However, only 616,019 installations have occurred. This translates to a conversion rate of just 24%, indicating that many households face hurdles in actualising their solar energy plans.

State-wise Performance

Gujarat leads with a conversion rate of 90.65%, followed by Kerala at 60.13%. Other states like Madhya Pradesh, Telangana, and Punjab also show relatively high rates. Conversely, Uttar Pradesh, despite having the highest number of applications, has a mere 9.6% conversion rate. Assam’s situation is even more concerning with only 1% of applicants successfully installing systems.

Challenges Identified

Experts attribute the low conversion rates to multiple factors. These include complicated administrative processes, lack of consumer awareness, and insufficient infrastructure for net metering. The need for a robust vendor ecosystem is also critical to facilitate installations.

Recommendations for Improvement

To enhance the deployment of solar installations, experts suggest targeted consumer awareness campaigns. They also recommend streamlining net metering processes and ensuring the availability of necessary equipment. Capacity building for distribution companies (discoms) is essential to meet the growing demand for solar installations.

Conclusion

The PMSGMBY has the potential to increase solar energy adoption in India. However, addressing the current challenges is crucial for achieving its goals.

Questions for UPSC:

1. Critically analyse the factors affecting the adoption of renewable energy in India.
2. What is the significance of net metering in the context of solar energy? Explain its challenges.
3. Estimate the impact of consumer awareness on the success of energy subsidy schemes.
4. Point out the role of state governments in promoting renewable energy initiatives in India.

Answer Hints:

1. Critically analyse the factors affecting the adoption of renewable energy in India.

1. High initial costs despite subsidies can deter households from adopting solar energy.
2. Complex application and approval processes lead to delays and lower conversion rates.
3. Lack of consumer awareness regarding the benefits and processes of renewable energy.
4. Insufficient infrastructure for net metering and installation services hampers growth.
5. State-level variations in performance indicate inconsistent policies and support across regions.

2. What is the significance of net metering in the context of solar energy? Explain its challenges.

1. Net metering allows consumers to receive credit for excess energy produced by their solar systems.
2. It incentivizes the installation of solar panels by lowering overall electricity costs for households.
3. Challenges include bureaucratic delays in approvals and installation of net metering systems.
4. Inconsistent policies across states can create confusion and reduce consumer participation.
5. Limited availability of necessary equipment can hinder the effective implementation of net metering.

3. Estimate the impact of consumer awareness on the success of energy subsidy schemes.

1. Higher consumer awareness can lead to increased applications for subsidy schemes.
2. Awareness campaigns can educate households on the financial and environmental benefits of solar energy.
3. Informed consumers are more likely to navigate the application process successfully.
4. Low awareness can result in underutilization of available subsidies and benefits.
5. Targeted outreach can address misconceptions and encourage participation in renewable energy initiatives.

4. Point out the role of state governments in promoting renewable energy initiatives in India.

1. State governments implement and oversee the execution of national renewable energy policies.
2. They can provide additional incentives or subsidies to encourage local adoption of solar energy.
3. Effective consumer awareness campaigns can be launched at the state level to educate residents.
4. States can streamline administrative processes to facilitate quicker approvals for installations.
5. Building capacity in local distribution companies can improve infrastructure for renewable energy deployment.