At least 42% households await subsidy under PM Surya Ghar scheme: MNRE data

In Feb, the government relaunched the new rooftop solar scheme as 'PM Surya Ghar: Muft Bijli Yojana', vowing an investment of over Rs 75,000 crore.

The Union government is grappling with a lag in the disbursal of subsidy for its rooftop solar programme due to issues ranging from lack of standardised digital processing to capacity building, amid a favourable response towards its PM Surya Ghar: Muft Bijli Yojna (PMSG:MBY).

Data from the Ministry of New and Renewable Energy (MNRE) showed that at least 42 percent households, which got rooftop solar installations under the scheme, are yet to receive the subsidy in their bank accounts. So far, there have been 6.34 lakh solar rooftop installations under PMSG:MBY and subsidy has been released to 3.66 lakh applicants.

Besides, the conversion from applications to actual installations is also moving relatively slow, as per MNRE data.

The problem of delayed disbursal of subsidies under the scheme was raised in the Rajya Sabha on December 3, to which Union minister Shripad Naik said in a written reply: “The Ministry is coordinating with all stakeholders involved such as REC Ltd, discoms, vendors, etc to resolve any challenge for successful implementation of PMSG: MBY.”

“As a result, a total of 1.45 crore registrations, 26.38 lakh applications and 6.34 lakh rooftop solar installations have been reported on the National Portal. Subsidy has been released to 3.66 lakh applicants and is regularly getting released within 15 -21 days.”

Reasons

At a conference of renewable energy, “REChintanShivir”, held on November 15, Union minister for new and renewable energy Pralhad Joshi also took up the issue. “After hearing from all states and power utilities, it has been concluded that the entire cycle of implementation of PM Surya Ghar - from application to disbursal of subsidy - should happen within 15 days,” Joshi said after the conference.

But, power utilities continue to struggle to meet the timeline of 15 days. A senior MNRE official who is not authorised to speak to the media said a key problem that has been identified is the absence of a standardised system to process the applications. “Electricity is a state subject, so the implementation on the ground lies with the discoms, most of which are state-owned. Irrespective of state-owned or private, discoms across regions have different IT systems of processing applications and going ahead for installations,” the official said.

A second official added that the MNRE is working on standardising the process of application into a unified system which can be used by all discoms. “It has been suggested that there needs to be a uniform digitsed system with all applications, fee payments and meter agreements. This will accelerate the execution from application to installation, followed up by disbursal of subsidy.”

Another reason is that the vendor base of solar PV modules has not been wide enough. After the launch of the scheme, the vendor base in the country has more than doubled from about 7,000 to 17,500, but it is still not enough, as per MNRE officials.

The ministry said is still working to further increase the same. “We are doing training programmes for technicians and engineers to ensure that there is a skilled workforce capable of supporting the solar energy ecosystem. REC Ltd has been roped in to lead this activity. The ‘vendor management division’ of REC actively supports vendors through weekly interactions, dedicated email support, and capacity-building programmes,” the MNRE said in its latest newsletter.

REC Ltd is a financial company that provides financial assistance to the power sector in India. The MNRE, on its part, took another meeting on December 4 to review the scheme and address the challenges faced in its implementation. The meeting was attended by experts from Center for Study of Science, Technology and Policy (CSTEP), Council on Energy, Environment and Water (CEEW), The Energy and Resources Institute (TERI), National Solar Energy Federation of India (NSEFI), and others.

The MNRE in a statement issued on December 4 said following the conclusion of the Model Code of Conduct in June 2024, disbursements commenced promptly.

“Consumer processes have also been significantly simplified. Previously, applicants had to submit multiple documents and make repeated visits to discoms offices. Now, most discoms have waived technical feasibility approvals for systems under 10kW and digitized their processes, reducing the documentation burden and streamlining applications,” read MNRE’s statement.

On capacity-building, the MNRE said an additional 2 lakh technicians (apart from 40,000 existing ones) will be trained over the next eight months. “Furthermore, more than 50,000 discoms engineers are receiving specialized training to inspect and commission rooftop solar plants and provide net meters.”

By March 2025, installations are projected to surpass 10 lakh, ramping up to 20 lakh by October 2025, 40 lakh by March 2026, and the targeted one crore by March 2027, the Ministry said.

States’ performance

Gujarat alone has 46 percent (2.9 lakh) of the total (6.34 lakh) rooftop solar installations across the country under the scheme as on November 27.

Maharashtra ranks second with 1.3 lakh installations under PMSG:MBY, followed by Uttar Pradesh at 53,423 households availing the scheme.

While Arunachal Pradesh has not started the scheme yet, Andaman and Nicobar Islands and Sikkim have one household each with rooftop solar installation.

The Union Cabinet, led by Prime Minister Narendra Modi, on February 29 approved 'PM Surya Ghar: Muft Bijli Yojana' with an outlay of Rs 75,021 crore and a target to achieve 1 crore rooftop solar installations in residential sector by FY27.

The scheme provides a Central Financial Assistance (CFA) of 60 percent of the system cost for 2 kW systems and 40 percent of additional system cost for systems between 2 to 3 kW capacity. The CFA has been capped at 3 kW and Rs 78,000. At current benchmark prices, this means, consumers can get Rs 30,000 subsidy for a 1 kW rooftop solar system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

Click here to know the steps involved to apply for the scheme

(Copy was updated with MNRE’s response)