My recent visit home during the summer break not only surprised me, but also caused deep curiosity. In just four months, several houses in my neighborhood had installed rooftop solar panels to create electricity. I had always thought our community wasn’t very nature friendly, nor very concerned about global warming. So, I wondered how and why this sudden shift toward solar energy occured?
After some digging, I discovered the government initiative: “PM Surya Ghar: Muft Bijli Yojana (PMSGMBY)”, launched by the Government of India on 13th February 2024. This hugely subsidised scheme is the world’s largest domestic rooftop solar project, and it has massive benefits for Indian households.
With 4.73 million pending subsidy applications, this project has installed solar panels in 1 million
homes by 10 March 2025. By March 2027, the government targets to reach 10 million homes.
A few qualities of the scheme are:
● A capital subsidy of Rs. 30,000 per kiloWatt is being offered by the government
● The loan is at a subsidized rate of 6.75% instead of the normal 12-13%
● A swift 15 day subsidy transfer process
● The process is digital and time bound
● Each solar installation offsets 100 trees worth of CO2 emissions which will help India’s
goal of achieving net zero carbon emission by 2070
● Additional state subsidies have helped states like Gujarat, Uttar Pradesh and Madhya
Pradesh reach 15% of their households.
● A total subsidy of almost 9 billion dollars or 75000 crore rupees
● Target of 30 GW installed capacity from this rooftop solar project
This project is a win-win for both the government and the middle class families who are
struggling to make ends meet. The way this project works is: – – – – –
A 3 kW solar panel system generates approximately 600 units per month.
An average family of four consumes about 10 units per day, which is 300 units/month.
That leaves a surplus of 300 units, which can be sold back to the government grid.
This means zero electricity bills, and additional income from the extra power.
In short, families will earn by generating power instead of paying for it.
This idea was made viable by the government through subsidies and affordable loans. The huge
scale at which this project is being executed must also be looked at. For example in my home
state, Uttar Pradesh: – –
0.8 million homes need to be reached by 2027
This means approximately 22000 houses per month need to be consistently targeted
–
For an even coverage of the state, 300 houses per district need to be reached per month
2,500+ vendors have already registered to carry out installations
A few of the government’s key gains include:
● Creation of 1.7 million jobs across sectors such as manufacturing, logistics, supply
chain, installation, operations, and 5-year maintenance contracts.
● Drastic reduction in transmission losses, which are currently among the highest in the
world. Since electricity is generated and consumed at the same location, these losses
are eliminated.
● Reducing electricity theft, which remains a persisting issue in residential zones. By
allowing citizens to legally earn from excess production, the government is incentivizing
responsible power usage.
● Reduced burden on DISCOMs, which often suffer from poor financial health due to
promises of free electricity during elections. This project offers a sustainable, one-time
solution instead of recurring subsidies.
● Massive untapped solar potential: India is one of the sunniest countries in the world,
making solar energy the most logical and scalable solution to its growing energy
demands.
As Elon Musk puts it: “The sun is converting over 4 million tons of mass to energy every second,
and it’s no-maintenance. That thing just works.” I also believe that solar is the best source of
power for this planet.
Most forms of energy , renewable or fossil-based, are directly or indirectly obtained from the
sun:
1. Photovoltaic or Photothermal – direct sunlight
2. Wind/Wave – caused by sun-driven temperature gradients and Earth’s rotation
3. Biomass (wood, peat, plant) – created via recent photosynthesis
4. Coal/Oil – stored ancient photosynthesis
5. Surface Geothermal – heat influenced by solar warming of the Earth’s crust
Solar is the only power source that:
● Requires no fuel cost
● Produces no emissions or exhaust
● Involves no transmission infrastructure loss
● Is delivered freely to every rooftop, every day
Our solar panel efficiency is improving from 20% to 30%, and innovations are underway to
prevent heat-related losses so that we can absorb more solar energy effectively.India added 23
GW of solar power in just one year, a growth greater than 50% year-on-year. Solar now
contributes to roughly 48% of India’s total renewable energy output, totaling nearly 100 GW.
India’s power demand is expected to reach 366 GW by 2030.The goal is for the installed
capacity to rise from 475 GW to 900 GW by 2030 and most of it must come from non-fossil fuel
sources. This shift to solar will help India attain the target of achieving Net Zero Carbon
Emissions by 2070.
As of 2025, the contribution of solar energy looks as follows:
By 2030, the distribution is expected to look like:
This is not that hard to achieve considering India has over 200,000 sq. km of Thar Desert land.
2 sq. km can generate 1 GW of solar power and therefore 1% of the thar desert could generate
100 GW of solar power which is equivalent to all of India’s current solar capacity.
This project cant be forced merely through environmental consciousness, it’s driven by
economics and opportunities to earn a profit.
The average subsidised solar generation costs around ₹3/unit and minimum selling prices at
₹8/unit. Solar panel efficiencies are expected to rise in the future and therefore, even with
reduced government spending, this is projected to be a highly profitable and sustainable
endeavour.
