Under the government’s flagship programme, PM Suryaghar Muft Bijlee Yojana, the country’s rooftop solar capacity increased by more than 50% in just six months since its launch in February.
Around 400,000 rooftop solar connections totalling to a new residential rooftop solar capacity of 1.8 gigawatts (GW) have been installed in the period. This already amounts to more than half of India’s total residential solar rooftop capacity, as per a report by JMK Research and Analytics.
As of March 2024, residential rooftop solar installed capacity in India was about 3.2 GW, or 27% of the total rooftop solar installations in the country, data from the report showed.
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The cumulative installed capacity of rooftop solar stood at almost 11.9 gigawatts (GW) as of March 2024, with the commercial and industrial segment accounting for about 60%.
With the new scheme, the government aims to address the issues with rooftop solar capacity addition, including the high costs. The increase in subsidy for the modules to 60% from earlier 40% and provision of loan to households at a minimum rate of interest of 7% are expected to boost households’ ability to opt for rooftop solar units.
The industry believes that the scheme is expected to be a game-changer in India’s solar story, enhancing the residential solar capacity to 30 GW by 2027.
“The government is easing the rules in terms of getting approval from discoms (for sale of surplus). It has also improved the financing options and aims to bring about awareness among households,” Vikram V, Vice-President & Co-Group Head – Corporate Ratings, Icra had said.
At a target of 30 GW residential rooftop solar installations by March 2027, the country will need to add about 8-10 GW of annual capacity additions from FY25-FY27.
Analysts believe that with increased capital subsidy under the scheme and other factors such as decreasing solar module costs and improved consumer awareness and understanding of rooftop solar technology,
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