The Pradhan Mantri Suryodaya Yojana aims to transform the energy landscape in Indian households, yet challenges persist in achieving widespread adoption. With a target of generating 40 GW of solar power annually in the next 5 years, the initiative seeks to reach a 500 GW non-fossil fuel capacity by 2030.
Costs and Subsidies: Installing rooftop solar panels can cost between Rs 2.20 lakh to Rs 3.5 lakh for a 3KW – 5KW installation. The government provides substantial subsidies, with Rs 18,000/kW for systems up to 3kW, Rs 9,000/kW for systems above 3kW and up to 10kW, and a fixed subsidy of Rs 1,17,000 for systems above 10kW.
These incentives aim to make solar power financially viable for households.
Financing and Break-even: To ease the financial burden on consumers, financing options like easy EMIs, ranging from Rs 4,000 – Rs 5,000 per month, equivalent to electricity bills, are available. Credit Fair, a consumer lending fintech start-up, plays a pivotal role by offering personal loans at an interest rate of 8-10%, further promoting solar adoption. The payback period for a solar system is generally 2-3 years, making it an attractive long-term investment.
Environmental Impact and Net Metering: The concept of Net Metering enhances the overall financial soundness of the process. Surplus energy generated by the solar panels is redirected back into the grid, earning users credits to offset future utility bills. This not only contributes to environmental sustainability by curtailing over 13,000 tons of carbon emissions but also results in substantial savings, around Rs. 12 crore, in yearly electricity costs.
Challenges and Future Outlook: Despite the ambitious goals, challenges like lack of awareness and easy financing options hinder the desired momentum. Initiatives by digital lenders, such as Credit Fair, prove successful in facilitating installation processes and contributing to the environmental cause.
In conclusion, the Pradhan Mantri Suryodaya Yojana holds the promise of a greener, more sustainable future for Indian households. With continued government support, increased awareness, and the commitment of fintech players like Credit Fair, the vision of powering 1 million residential rooftop solar systems across the country in the next 5 years seems achievable.
Aastha Kumari 
Dhairya Saraswat