India’s big push for clean energy is hitting some bumps. Modi’s rooftop solar push falls short of targets even with hefty subsidies, and that’s making people worry about how fast India can move away from coal. The government aims to nearly double its clean energy capacity to 500 gigawatts by 2030, essentially the backbone of its climate commitments. In February 2024, Prime Minister Modi launched the PM Surya Ghar program to accelerate rooftop solar adoption, offering up to 40% off the system cost through subsidies, and still, things haven’t really taken off. Progress is slow, largely due to complex financing and inconsistent follow-through across states.

Subsidies Generous, Installations Lagging

According to the Ministry of New and Renewable Energy, residential rooftop solar systems have been installed on about 2.36 million homes, which is nowhere near the target of 4 million by March. The ministry claims that over 3 million households have benefited, but many applications remain in limbo awaiting approval.

Right now, about three out of five applications on the PM Surya Ghar portal are still pending approval, and around 7% have already been rejected. Analysts are sounding the alarm: if approvals don’t speed up, India could miss key solar milestones, which means the country’s shift away from coal and its long-term renewable energy goals are both at risk.

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Loan Delays and Banking Issues

Financing has been identified as a major hurdle. As per the plan, consumers select suppliers that facilitate bank loans for rooftop solar panels, with subsidies paid after installation is complete. But banks have reportedly been holding back or denying loans due to insufficient documentation, ownership disputes, and concerns about non-recovery of bad loans.

According to government bank officials, proper documentation is required to protect public money. But suppliers claim that loans are frequently denied due to unpaid electricity bills or outdated land records. Banks have also reportedly been demanding collateral for loans under ₹200,000, contrary to the rules.

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State Utilities Reluctant to Promote Solar

State-owned utilities haven’t exactly rushed to promote rooftop solar. In fact, analysts note that it’s mostly well-off families, those with higher electricity bills, who jump on the solar first. That’s a problem for utilities, since when these customers start generating their own power, utility revenues decline as their demand drops.

Energy experts warn that all the paperwork and slow-moving state support are holding India back from hitting its clean-energy goals. Right now, the government is even thinking about pausing new clean-energy projects because so many older ones are still stuck on the drawing board. Modi’s rooftop solar push falls short of targets, and India clearly needs real, coordinated reforms if rooftop solar is going to take off and power the country’s shift to cleaner energy.

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