Ilaria Rosella Pagliaro How the PM-Surya Ghar program transforms solar panel installation in India, offering meaningful subsidies and simplifying bureaucratic processes for millions of families
@Canva
In February 2024, the Indian government unveiled a substantial subsidy plan known as PM-Surya Ghar, aiming to boost the adoption of solar panels in private homes. This initiative seeks to contribute an additional 30 gigawatt-hours to the national energy mix, addressing India’s considerable delay in the deployment of domestic solar systems. Despite the abundant and intense sunshine covering much of the country, solar power production in 2022 stood at a mere 11 gigawatts, falling short of the set targets. PM-Surya Ghar aims to provide free energy to 10 million households through a national portal. This platform, akin to America’s Healthcare.gov but focused on solar panels, simplifies the installation and financial management processes, making them more streamlined and accessible.
Previously, the installation of a solar system could require up to 21 different approvals, posing a significant barrier, especially given costs that could exceed $5,000 — a prohibitive figure for most Indians. PM-Surya Ghar offers to cover up to 60% of the installation costs for systems up to 2 kilowatts and 40% for those with greater capacity. Additionally, it provides access to low-interest loans at 7% for economically challenged families.
Economic and environmental impacts
The rollout of PM-Surya Ghar has the potential to rejuvenate the Indian solar market by cutting through bureaucratic red tape and easing the approval and installation process. This initiative enables industry players to expand their customer base beyond economic barriers, further encouraged by government subsidies making solar technology more attainable.
Even in adverse weather conditions, such as those in New Delhi where clouds and smog often obscure the sun, the adoption of solar panels has demonstrated tangible benefits. Some users have reported significant savings on their electricity bills, with reductions of up to $700 a month during the summer. Thus, PM-Surya Ghar marks a pivotal moment for the sustainability and energy independence of Indian households, significantly contributing to the country’s energy and environmental goals.
Source: PM-Surya Ghar
