PM Modi launches new rooftop solar power scheme: What it is, why it is needed

Subject: Schemes

Section: Environment

Context:

Prime Minister Narendra Modi on January 22, 2024, announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems.

About ‘Pradhan Mantri Suryodaya Yojana’:

The scheme seems to be a new attempt to help reach the target of 40 GW rooftop solar capacity, as envisaged under the Rooftop Solar Programme in 2014.
Target: installing rooftop solar on 1 crore houses.
The scheme would help not only reduce electricity bills of the “poor and middle class”, but also push India’s goal of becoming self-reliant in the energy sector.

About Rooftop Solar Programme:

In 2014, the government launched the Rooftop Solar Programme which aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022.
- However, this target couldn’t be achieved. As a result, the government extended the deadline from 2022 to 2026.
It provides Central Financial Assistance and incentives to distribution companies (DISCOMs) as per the guidelines of the Ministry of New and Renewable Energy (MNRE).
Consumers can benefit from the scheme either through DISCOM-tendered projects or via the National Portal (www.solarrooftop.gov.in).
The portal allows consumers to choose vendors and the brand/efficiency of solar equipment. DISCOMs are responsible for issuing technical feasibility approval, installing net meters, and inspecting systems. After installation and inspection, subsidies are directly transferred to consumers’ bank accounts.
Additionally, consumers can export surplus solar power units generated from their rooftop solar plants to the grid, as per metering provisions issued by State Electricity Regulatory Commissions (SERCs) or Joint Electricity Regulatory Commissions (JERCs). Consumers are monetarily compensated for the surplus power exported according to prevailing regulations.

What is India’s current solar capacity?

As of December 2023, India’s solar power installed capacity is approximately 73.31 gigawatts (GW), with rooftop solar capacity contributing about 11.08 GW.
Rajasthan leads the country in total solar capacity with 18.7 GW, followed by Gujarat with 10.5 GW.
In terms of rooftop solar capacity, Gujarat is the leader with 2.8 GW, with Maharashtra in second place at 1.7 GW. Solar power constitutes a significant portion of India’s renewable energy capacity, which is around 180 GW.

Why is an expansion of solar energy important for India?

Expanding solar energy is crucial for India due to the country’s expected largest energy demand growth over the next 30 years, as projected by the International Energy Agency.
To meet this growing demand, India requires a reliable energy source that isn’t solely dependent on coal.
India aims to achieve 500 GW of renewable energy capacity by 2030.
The significant growth in solar power capacity, from less than 10 MW in 2010 to 70.10 GW in 2023, highlights the country’s commitment to expanding solar energy as a key part of its energy mix.

Source: IE