Now Reading: States offer one-time solar subsidy to offset free power costs
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States offer one-time solar subsidy to offset free power costs
Several states, including Uttar Pradesh, Andhra Pradesh and Bihar, are offering one-time capital subsidies to help households install rooftop solar panels under the central government's ₹75,000 crore PM Surya Ghar scheme. The…
The Story in Brief
Several states, including Uttar Pradesh, Andhra Pradesh and Bihar, are offering one-time capital subsidies to help households install rooftop solar panels under the central government's ₹75,000 crore PM Surya Ghar scheme. The move aims to reduce the states' recurring revenue losses from providing subsidised or free electricity to households.
The scheme targets one crore installations by March 2027. As of August 13, 52 lakh households have installed rooftop solar. A CEEW survey found that 73% of households that consider rooftop solar expensive are unaware of available financing options, and unlocking this demand could add 22.7 GW of capacity.
The Indian Opinion
The shift from recurring free electricity to one-time capital subsidies for rooftop solar is sensible fiscally, but the spin that it is a win-win hides a harder truth. Households already getting free power have no reason to install solar unless the state pays nearly the full cost. The CEEW survey shows 73% of households that see rooftop solar as expensive do not even know about financing options. That is a delivery failure, not a consumer preference. The real test will be whether states like Bihar and UP, which have weak financials, can actually scale up the Utility-Led Aggregation model without passing the cost back to consumers through higher tariffs.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
