The boost Centre's solar power schemes need, Pg14

Key Highlights:

• India's solar power now constitutes nearly 30% of its total installed electricity capacity, with over 50 gigawatts (GW) added in the last two years.
• The government is implementing two flagship schemes, PM Suryaghar Yojana and PM-KUSUM, with a combined budget of approximately Rs 95,000 crore, to promote decentralized solar energy.
• As of May 31, 2026, about 13 GW of decentralized solar power has been installed, falling short of the 40 GW target for the current financial year.
• PM-KUSUM, launched in 2019, has seen over 10.9 lakh standalone solar water pumps installed against a target of 14 lakh.
• State power subsidies are a significant barrier to adoption, as they reduce the incentive for consumers to invest in solar installations.
• States like Gujarat, Maharashtra, and Kerala show higher adoption rates for PM Suryaghar, while Punjab, Tamil Nadu, and Karnataka lag due to extensive power subsidies.
• The Estimates Committee of Parliament has recommended exploring ways to ease upfront costs and provide additional financial incentives to boost scheme adoption.

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Detailed Insights:

• India has rapidly expanded its renewable energy capacity, becoming the second-largest adder of solar power globally in 2025, only behind China.
• The PM Suryaghar Yojana aims to install rooftop solar units on one crore households, offering free electricity up to 300 units monthly and a cash subsidy for equipment.
• PM-KUSUM supports farmers in setting up small solar plants on unused land or installing grid-connected/standalone solar water pumps, enabling additional income and reduced energy bills.
• Despite substantial budgetary allocation, both schemes have performed below their full potential, with PM-KUSUM targets extended due to the pandemic.
• The uneven progress across states highlights that Gujarat, Maharashtra, Uttar Pradesh, Kerala, and Rajasthan collectively account for nearly 70% of the 33 lakh rooftop installations.
• States offering free or highly subsidized electricity to domestic and agricultural consumers, such as Punjab (spending over Rs 20,000 crore on subsidies last year), face low solar adoption.
• The upfront cost of solar equipment, which can be several lakh rupees, is a deterrent, as recovery through free electricity and excess power sales is a long-term prospect.
• Ironically, some states like Uttar Pradesh and Rajasthan have successfully boosted adoption by offering additional one-time financial incentives, proving more sustainable than recurring power subsidies.
• Decentralized solar power is critical for India's clean energy transition, addressing rising power demand, land constraints for large solar parks, and reducing transmission losses.
• Full implementation of PM Suryaghar is estimated to save the government approximately Rs 75,000 crore annually in electricity costs.
• Solar power is poised to become India's second-largest source of electricity generation, surpassing hydropower, which has seen stagnated capacity.
• Decentralized solar is increasingly vital for meeting peak demands during extreme weather conditions, such as heatwaves and low rainfall, which are becoming more frequent.

Key Concepts Involved:

• Decentralized Solar Power: Electricity generation at or near the point of consumption, reducing transmission losses and enhancing energy access.
• Power Subsidies: Financial assistance provided by the government to consumers to lower electricity costs, often impacting the economic viability of alternative energy investments.
• Renewable Energy: Energy derived from natural sources that replenish faster than they are consumed, such as solar, wind, and hydro.
• Grid-connected Solar: Solar power systems that are linked to the main electricity grid, allowing excess generated power to be fed back into the grid.