In a significant move towards fostering a greener economy, Finance Minister Nirmala Sitharaman unveiled pivotal initiatives in the Interim Budget for 2024-25. With an allocation exceeding Rs 11,500 crore, the budget aims to bolster various segments of the renewable energy sector, including solar rooftop system, the National Green Hydrogen Mission, and Wind Power projects, for the year ending March 2025.
The budget for the government’s solar power project has increased significantly to Rs 10,000 crore in 2024-25, up from around Rs 4,757 crore compare to the previous year 2023-24.
Central to the budget’s green initiatives is the ambitious rooftop solarisation program, poised to illuminate the lives of 1 crore (10 million) Indian households. This program, part of the visionary Pradhan Mantri Suryoday Yojana, would enable the beneficiaries to obtain up to 300 units of free electricity every month through rooftop solarisation. This translates to benefits of Rs. 15,000 to Rs. 18,000 annually from free solar electricity and selling the surplus to the distribution companies. This bold move not only underscores the government’s dedication to renewable energy but also aligns with Prime Minister Narendra Modi’s vision of a sustainable future, a vision that found resonance on the historic day of the Ram Mandir’s consecration in Ayodhya 22 Jan on 2024.
This scheme announced in the budget brings additional benefits. It creates new business opportunities for vendors in the solar system market. This would also add to job creation especially for the youth in the country with technical skills in making, installing, and maintaining these systems.
India’s rooftop solar capacity has increased to 2.7 GW since 2016. The solar rooftop Programme Phase-II, launched in 2019, aims to boost this capacity to 40 GW. The Pradhan Mantri Suryoday Yojana (PMSY) is expected to further accelerate solar energy adoption. Slow growth in rooftop solar is attributed to lack of public awareness and limited financing options.
Vikas Agarwal, Co-Founder of Credit Fair, highlights the need for government support to enhance rooftop solar demand and usage. Credit Fair provides loans for rooftop solar installations at 8-10% interest rates and offers no-cost EMIs.
The government’s goal is to produce 40 GW of solar power annually over the next 5 years, aiming for a total of 500 GW of non-fossil fuel power by 2030. Mallikarjun Kharge, President of the Indian National Congress, notes that only 2.2 GW of the 40 GW annual targets has been installed in homes, leaving about 70% of the goal unachieved.
Solar Power Boost:
Wind Power:
Coal Transition:
Green Hydrogen Initiative:
Freyr Energy, a company dedicated to simplifying the transition to solar power for homes and businesses. Our expertise in providing efficient, cost-effective solar installations aligns perfectly with the government’s vision of empowering millions of households with solar energy.
We offer complete project management from design and procurement to installation and post-sales support. We also assist with the subsidy application process for seamless funding. Make a sustainable choice and switch to solar with Freyr Energy today—join us in powering a brighter tomorrow.
PM Narendra Modi on 22 Jan 2024, introduced the Pradhan Mantri Suryoday Yojana, an initiative aimed at promoting the adoption of solar energy across the nation. This scheme is not just a step towards sustainable energy but also a leap towards a greener future.
Pradhan Mantri Suryoday Yojana is designed to transform the energy industry by deploying solar panels on the rooftops of homes belonging to middle-class and low-income citizens nationwide. With a vision to light up 1 crore homes using solar power, this scheme is pivotal in India’s journey towards energy self-sufficiency and meeting the ambitious net zero target.
Objective and Schedule: The initiative ambitiously aims to achieve its target of solarizing 1 crore households with rooftop solar installations within the span of a year, aligning with the broader objective to attain 40 GW of rooftop solar capacity by the year 2026.
Nodal Agency Role: REC has been designated by the Ministry of New and Renewable Energy (MNRE) as the overall program implementation agency for the rooftop solar scheme.
Involvement of Key Public Enterprises: Eight major government-owned companies, such as NTPC, NHPC, and PowerGrid, are set to play a significant role in setting up rooftop solar systems. They will work under the RESCO model and get financial support from REC.
Financial Growth: REC plans to grow their renewable energy loans to a staggering Rs 300,000 crore by 2030, with a current sanctioned amount of about Rs 125,000 crore.
The eligibility for this solar rooftop yojana are given below
Anyone eligible for the scheme can easily apply online by following these steps:
When submitting an application for the Pradhan Mantri Suryoday Yojana, please ensure you have the following documents ready for verification:
The Pradhan Mantri Suryoday Yojana brings a lot of benefits to the people of India, making life easier and more sustainable. Here’s how:
Freyr Energy is making it hassle-free for homeowners to get transition to solar power. We handle the entire project from start to finish, including design, procurement, installation, and providing service after the sale. We also guide you through the application process for smooth disbursal of subsidy. Take your first step towards solar and call us for a free consultation today.
The Solar Panel Subsidy in India is a pivotal initiative by the government, aimed at making solar energy more accessible and affordable, especially for homeowners. This subsidy is not just a financial incentive; it’s a strategic move towards a sustainable and energy-secure future.
Solar panel subsidies are financial incentives or support mechanisms provided by the government to encourage the installation and use of solar panels for generating electricity. These subsidies aim to make solar energy more affordable for homeowners, thereby accelerating the adoption of renewable energy sources.
The Indian government, through the Ministry of New and Renewable Energy (MNRE), often offers various schemes for promoting solar energy. Gather all necessary documents required for the subsidy application. This typically includes identification proof, address proof, and proof of property ownership.
Step 1: Download Sandes App from the National subsidy portal
Step 2: Register on the national subsidy portal and submit the application.
Step 3: You will receive feasibility approval from DISCOM via registered email ID.
Step 4: Once the solar panel installation is completed, a work completion report and the net meter installation request needs to be submitted
Step 5: After installation of the net meter and inspection by DISCOM, DISCOM will generate a commissioning certificate from the portal.
Step 6: Upon receipt of the commissioning report, submit bank account details and a canceled cheque through the portal.
Step 7: Subsidy is disbursed to the bank account submitted by you.
Freyr energy will guide you through the entire process. Our liaisoning team will be in touch with you at every step to make the entire process hassle-free.
To be eligible for the National Rooftop Solar Scheme in 2024, applicants must meet the following criteria:
To install solar panels for homes and businesses, consumers can pay a down payment of 20%–30%. They will need to provide income proof, such as:
In a significant move to boost solar energy adoption among residential consumers, the Indian government has announced a 23% increase in the Central Financial Assistance (CFA) subsidy as of January 2024. This enhanced solar panel subsidy is designed to make solar installations more accessible and affordable for homeowners across the country.
The government has extended its initiative of solar subsidy until March 31, 2026. Under this scheme, homeowners who install solar panels on their rooftops before this deadline are eligible for financial incentives. This initiative is a critical component of a broader strategy aimed at increasing the adoption of solar energy. The continuation of this support is contingent upon the fulfillment of the scheme’s primary objectives.
The solar panel subsidy in India is a forward-thinking initiative that not only addresses immediate economic and environmental concerns but also sets the stage for a sustainable future. As we move towards 2024, understanding and leveraging these subsidies will be key to accelerating India’s transition to renewable energy.
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