Pradhan Mantri Suryodaya Yojana

January 23, 2024

Prime Minister Narendra Modi recently announced the ‘Pradhan Mantri Suryodaya Yojana’, a new government scheme to promote rooftop solar power systems. This scheme aims to boost India’s renewable energy goals and reduce electricity bills for households.

What is the scheme about?

The Pradhan Mantri Suryodaya Yojana aims to rapidly expand rooftop solar capacity by installing solar power systems on one crore houses. It will provide incentives and financial assistance to make it affordable for residential consumers to adopt rooftop solar.

Why is this scheme announced now?

This scheme comes after India missed its initial target of 40 gigawatts of rooftop solar capacity by 2022 under the existing Rooftop Solar Programme. The new scheme signals renewed impetus to achieve the target of 40GW capacity by the extended deadline of 2026. With only around 11GW currently installed, the Pradhan Mantri Suryodaya Yojana intends to accelerate rooftop solar adoption.

What are the benefits?

Installing solar rooftops under this scheme will help reduce monthly electricity bills of households. It will also support India’s ambitious goal of reaching 500GW of renewable energy by 2030, with solar expected to contribute the major share. Widespread rooftop solar adoption will boost energy security and self-reliance while also benefiting the environment.

Current status of India’s solar expansion

As of December 2022, India’s total installed solar capacity stands at around 73GW. However, rooftop solar accounts for only around 11GW out of this. While India has come a long way from under 10MW of solar in 2010, the pace of rooftop solar needs to be significantly stepped up to meet the 40GW target. This is where the Pradhan Mantri Suryodaya Yojana comes in.

Challenges ahead

While the scheme indicates strong government intent, implementation remains key. Regulations, financing frameworks and lack of consumer awareness have been some key challenges. Sustained policy support and innovative business models will be needed to enable widescale adoption of rooftop solar across Indian households under this scheme.

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