Prime Minister Narendra Modi announces a new plan to promote rooftop solar energy

Prime Minister Narendra Modi on Monday announced a new plan to promote rooftop solar energy in the country. The scheme, titled Pradhanmantri Suryodaya Yojana (PSY), aims to install solar power systems on the roofs of 1 crore households.

The Prime Minister took to social media platforms to announce the plan. “Today, on the auspicious occasion of the Ayodhya dedication, my resolve was further strengthened that the people of India should have their own solar roof system on the roof of their houses. The first decision I have taken after returning from Ayodhya is that our government will launch ‘Pradhanmantri Suryodaya Yojana’ with an aim to install rooftop solar on 1 crore houses. This will not only reduce the electricity bills of the poor and middle class but will also make India self-reliant in the energy sector,” his post said.

Rooftop solar energy involves installing photovoltaic (PV) solar panels on the roof of an establishment or home. The systems can be with or without a battery storage system. The system is connected to the main power supply unit. It helps the establishment reduce the consumption of grid-connected electricity, which it receives through a metered connection from the respective electricity distribution company (discom). This saves electricity costs for the consumer. With a solar roof system there is only an upfront capital investment and minimal maintenance costs. Costs vary depending on the size and capacity of the solar PV and battery.

The Center currently has a National Rooftop Scheme that provides central financial support for a total of 40 percent of the capital cost of a solar roof project. The Ministry of New and Renewable Energy (MNRE) will select the projects based on submissions from discoms, with private contractors/vendors selected by the discoms constructing the said project. There have been cases of fraud where some rooftop solar companies/suppliers claimed to be ministry authorized sellers. The ministry recently issued several notices stating that no vendor has been authorized by the ministry.

This article recently reported that the government is shifting its focus to decentralized solar energy to meet green energy targets. At the same time, it is being considered to transfer the scheme to REC Limited, the leading financier of the energy sector, to spread its reach across the country and close the inefficiencies. REC has in the past been the nodal agency for several flagship energy access programs of the Centre, especially rural electrification under the DDUGJY and the PM-SAUBHAGYA programme.

Rooftop solar energy lags behind compared to grid-connected ground-based solar energy projects. Of the total installed solar power generation capacity of 73 gigawatts (GW) in the country, 56.9 GW is ground-mounted (large-scale solar power generation units), while grid-connected rooftop solar is 11 GW and off-grid is 2.75 GW. .

First print: January 22, 2024 | 7:19 PM IST