Solar flare: How simple fixes can turn PMSGMBY into a game changer

Given India’s relatively low solar-power generation and high dependence on thermal, the PM Surya Ghar Muft Bijli Yojana (PMSGMBY), announced in February last year, was seen as a potential game changer. Under the scheme, which aims to supply solar power to 10 million homes by March 2027, residential households are eligible for a subsidy of ₹30,000 for a 1 kilowatt (Kw) system, ₹60,000 for 2 Kw, and ₹78,000 for 3 Kw and beyond. Households benefit from lower electricity bills and can sell excess power back to the grid. All factors for the success of this scheme were in place. It received adequate funding: The ₹6,250 crore provided for in Budget 2024-25 was revised to ₹11,100 crore; the allocation in Budget 2025-26 was ₹20,000 crore. The government has also simplified the application process through a dedicated online portal and streamlined bank financing. With 4.73 million applications, the demand also seems robust. And yet, the actual performance after a year of the launch appears underwhelming.

 

According to government data, just 10 per cent of the target had been achieved as on March 10 this year. The average installation rate, according to some reports, is 70,000 per month. At this pace, only around 30 per cent of the target might be met by the end of 2026. The coverage has been uneven too, with Gujarat and Maharashtra accounting for two-thirds of total installations. Though these states are admittedly the two largest electricity consumers in India, a more even implementation would have offered a better distribution of the scheme’s benefits to a wider section of the Indian population.

 

One of the key reasons for the slow progress — the lack of quality and standardisation of equipment — can be easily addressed. The entry of new installers with limited experience in the rooftop solar market often makes the installation process substandard. A Mercom India research shows that in Kerala, which transitioned from the state programme to PMSGMBY, mandatory quality tests like that of net metering module were apparently ignored by the scheme’s implementing agency. Difference in module sizes and indifferent equipment quality create installation problems, reducing consumer acceptance. The Ministry of New and Renewable Energy could address this issue by publishing standards for various components that go into rooftop solar systems. Old structural problems with some state-owned distribution companies, or discoms, has also impeded the rollout. While some discoms — notably in Gujarat — have been proactive in implementing the scheme, most others fear that absorbing solar power in the grid might affect their already precarious finances. This adds to their reluctance to adjust scheduling for the uptake of solar power, which is available only in daylight hours.

 

If the government adopts the same mission-mode urgency it showed earlier for the Swachh Bharat and Har Ghar Nal Se Jal schemes, the PMSGMBY, which clearly enjoys incipient popularity, could gain better traction. With summers growing hotter, there is an urgent need for India to lower its dependence on thermal power. A high-potential scheme like PMSGMBY should not be allowed to underperform for want of simple fixes.