PM Surya Ghar Scheme: Rooftop Solar Push Slows Due to Loan Delays and Limited Support from State Utilities

India’s Rooftop Solar Scheme for households is reportedly running behind schedule. The PM Surya Ghar Programme, launched in February 2024, provides subsidies covering up to 40% of installation costs. It is part of the government’s wider plan to reach 500 gigawatts of clean energy capacity by 2030. 

As per Reuters report, official data shows about 2.36 million residential installations so far, against a target of 4 million by March. Close to 60% of applications on the scheme portal are still pending, while around 7% have been rejected. 

Loan Approvals Emerge as Key Hurdle 

Under the scheme, households apply through registered vendors. The vendor arranges the bank loan and completes the installation. Once the system is in place, the government subsidy is credited to the loan account. 

Banks have delayed or rejected many applications, often citing incomplete documents or credit concerns. Some lenders say stricter checks are needed because repossessed solar panels have limited resale value if loans turn bad. 

In states such as Odisha, vendors say applications are sometimes rejected due to missed electricity payments or land titles that remain in the names of deceased relatives. Authorities have since allowed co-applicants and simplified some documentation rules. 

Collateral Demands in Some States 

As per the report, Industry groups say some banks are asking for collateral even for loans below ₹200,000, though the scheme guidelines do not require it. This has slowed approvals in states such as Rajasthan. 

Officials have said loan rejection rates vary across states. The renewable energy ministry has also stated that installations are increasing and the scheme has benefited more than 3 million households. 

Utilities Wary of Revenue Impact 

State-run distribution companies have not actively promoted rooftop solar in several regions.  

Higher-income households, which typically consume more electricity, are the main adopters. When these consumers shift to rooftop systems, utilities face a loss of regular revenue from grid sales. 

Read More: Budget 2026: Renewable Energy Gets Allocation of ₹32,914.7 Crore and PM Surya Ghar Receives ₹22,000 Crore! 

Conclusion 

Pending loan approvals, documentation issues and uneven support from states and utilities have slowed rooftop solar adoption. Installations remain below the programme’s targets. 

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