PM Surya Ghar Yojana India's Solar Ambition : The Road Till Now
- TheGreen Bein
- Mar 13
- 3 min read
Launched on February 13, 2024, the Pradhan Mantri Surya Ghar Yojana (PM Surya Ghar Yojana) is an ambitious initiative by the Indian government aimed at promoting solar energy adoption in residential sectors. The primary objective is to equip 10 million homes with solar panels by March 2027, thereby reducing electricity bills and fostering environmental sustainability.
Progress and Achievements
In its inaugural year, the scheme has witnessed significant milestones:
Beneficiary Reach: Approximately 846,000 households have benefited from the installation of rooftop solar systems, averaging 70,000 installations per month.
Financial Support: The government has disbursed ₹4,308.66 crore in subsidies, with each family receiving an average of ₹77,800.
Electricity Bill Reduction: Notably, 45% of the beneficiaries have achieved zero electricity bills, effectively generating their own power.
Environmental Impact: The installed solar panels are projected to produce approximately 1,000 billion units of electricity over the next 25 years, potentially reducing carbon emissions by 720 million tons.
Application and Installation Statistics
The scheme has garnered substantial interest:
Registrations: Over 13 million families have registered for the scheme.
Installations Completed: By September 2024, installations were completed in 375,000 homes.
Economic and Employment Benefits
Beyond environmental advantages, the scheme has bolstered economic growth:
Cost Savings: Families consuming 250 units of electricity monthly and selling excess power back to the grid can save approximately ₹25,000 annually.
Job Creation: The initiative has generated over 1.7 million jobs across various sectors, including solar panel manufacturing, supply chain management, sales, installation, and maintenance.
Challenges and Areas for Improvement
Despite its successes, the scheme has encountered challenges:
Installation Pace: While the first year saw 8.6% of the target achieved, experts anticipate an acceleration in installations over the next two years as governmental processes become more streamlined.
Financial and Planning Issues: The solar energy sector in India faces challenges such as financial struggles, planning inefficiencies, and regulatory weaknesses.
Adani Group Controversy
A significant development impacting the solar sector is the legal troubles faced by the Adani Group:
Allegations: In November 2024, U.S. prosecutors indicted Gautam Adani and two executives on charges of orchestrating a scheme to pay approximately $406.7 million in bribes to Indian officials to secure solar energy contracts.
Financial Implications: Following the indictment, shares in companies associated with the Adani Group experienced significant declines, reflecting investor concerns over corporate governance and potential risks posed by ongoing investigations.
Credit Ratings: Fitch Ratings assigned a negative outlook to Adani Energy Solutions Limited, highlighting concerns over corporate governance and the potential risks posed by ongoing U.S. investigations.
Future Outlook
The PM Surya Ghar Yojana is poised for accelerated growth:
Installation Targets: The government aims to achieve 1 million installations by March 2025, 2 million by October 2025, 4 million by March 2026, and the full target of 10 million by March 2027.
Process Improvements: Simplifying application procedures, ensuring timely subsidy disbursements, and offering affordable loans are expected to enhance participation rates.
Rural Initiatives: The "Model Solar Village" program aims to promote solar energy in rural areas, with a budget allocation of ₹800 crore, providing ₹1 crore in central assistance to each selected village.
Conclusion
The PM Surya Ghar Yojana has made commendable progress in its first year, contributing to India's renewable energy goals and offering economic benefits to citizens. Addressing challenges such as installation pace and sectoral controversies will be crucial for the scheme's sustained success. With continued government support and public participation, the initiative is well-positioned to transform India's energy landscape.
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