States offer rooftop solar subsidies to cut power losses

Several states, including Uttar Pradesh, Andhra Pradesh and Bihar, are providing financial assistance to households that cannot afford rooftop solar installations to reduce revenue losses from subsidising electricity, J.V.N. Subramanyam, Joint Secretary at the Union New and Renewable Ministry, told The Hindu. The ₹75,000 crore Pradhan Mantri, Surya Ghar: Muft Bijli Yojna aims to install rooftop solar in one crore households by March 2027. The scheme offers subsidised installations, bank loans and simplified processes, allotting 300 units of free power monthly. As of August 13, 52 lakh households have installed the system.

Under the Utility-Led Aggregation Model, states like Tamil Nadu are also adding incentives. The Hindu reports that the Tamil Nadu government announced an extra ₹22,000 for domestic consumers, combining with the central subsidy of up to ₹78,000 for a total benefit of ₹1 lakh. However, P. Ashok Kumar of the Tamil Nadu Solar Energy Developers Association has urged the state to instead push energy storage devices like batteries. He argued such a move would reduce losses incurred by the Tamil Nadu Electricity Board by enabling consumers to use solar power during peak hours.

A survey by the Council on Energy, Environment and Water in June found that 73% of households perceiving rooftop solar as expensive were unaware of financing options. Addressing this affordability barrier could unlock a theoretical convertible demand of 22.7 GW, the report stated. To reach the target of one crore installations by March 2027, India needs to solarise 0.6 million households per month between June 2026 and March 2027, it added.