1. PM Surya Ghar Capacity Development
The PM Surya Ghar scheme aims to target aims to achieve 40,000 MW of installed rooftop solar capacity by 2026. As of 31st Mar 2025, a total of 17017 MW has been achieved. Launched in February 15, 2024, scheme successfully added 1,890 MW of rooftop solar capacity by the end of the 2024 (Jan-Dec), based on 6.3 lakh installations with an average capacity of 3 kW per installation. The capacity addition reflecting the adoption trends throughout the year.
2. Government Announcements & Achievements
Central Government
The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW. At current benchmark prices, this will mean Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher. Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW.
State Government
Surya Urja Rooftop Yojana- Gujarat Residential Consumers: RTS systems up to 3 kW: 40% subsidy. RTS systems above 3 kW up to 10 kW: 40% subsidy for the first 3 kW, and 20% for the capacity above 3 kW up to 10 kW. Beyond 10 kW: No subsidy.
Common Facilities (RWA/GHS):20% subsidy for installation of RTS for common facilities. Capacity limit: Up to 10 kWp per house, and not more than 500 kWp in total, including existing RTS installations at the time of installation for common activities.
Status of Total Applications Received & Installations done under PM Surya Ghar Solar Rooftop Yojana – Leading SRT States (Status as of Dec 2024)
Rooftop Solar System Price in Gujarat with Subsidy
| Solar System Size | Estimated Price Range | Subsidy Applicable | Prices After Subsidy |
|---|---|---|---|
| 1kW | Rs. 75,000 – Rs. 85,000 | Rs. 30,000 | Rs. 45,000 – Rs. 55,000 |
| 2kW | Rs. 1,50,000 – Rs. 1,70,000 | Rs. 60,000 | Rs. 90,000 – Rs. 1,10,000 |
| 3kW | Rs. 1,89,000 – Rs. 2,15,000 | Rs. 78,000 | Rs. 1,11,000 – Rs. 1,37,000 |
| 4kW | Rs. 2,52,000 – Rs. 2,85,600 | Rs. 78,000 | Rs. 1,74,000 – Rs. 2,07,600 |
| 5kW | Rs. 3,15,000 – Rs. 3,57,000 | Rs. 78,000 | Rs. 2,37,000 – Rs. 2,79,000 |
| 10kW | Rs. 5,31,000 – Rs. 6,07,000 | Rs. 78,000 | Rs. 4,53,000 – Rs. 5,29,000 |
3. Market Insight
-
i. Player wise capacity buildup updates
- IB Solar, based in Greater Noida, Uttar Pradesh, manufactures 500 MW of Solar Modules and plans to expand to 1.4 GW by January. They produce mono-PERC, bifacial, and soon, TOPCon modules. The UP Electronics Policy supports their growth. Demand has increased due to the PM Surya Ghar scheme.
-
ii. Merger & Acquisition
-
Indian solar manufacturer Waaree Energies Ltd has signed a definitive agreement to acquire 100% of Enel Green Power India (EGP India) from Enel Green Power Development S.R.L. The consideration of the acquisition currently stands at INR 792 crore, subject to customary closing adjustments.
For more updates on solar industry, visit Einfews.
-
-
iii. Player wise key investment updates
- Tata Power has achieved over 100,000 Rooftop Solar installations in India, with 33,000 in Kerala. CEO Praveer Sinha announced the company's “GharGhar Solar” initiative to boost Solar adoption.
-
iv. Funding Updates
-
TPREL has partnered with Canara Bank to promote Rooftop Solar installations under the PM Surya Ghar Scheme. The collaboration offers affordable financing options for households, with loans of up to ₹6 lakh and interest rates as low as 7%.
-
-
v. Auction updates
-
NHPC has issued a tender for the design, supply, installation, testing, and commissioning of a 1.098 kW solar rooftop project. Bids must be submitted by January 15, 2025, and will be opened on January 21. Bidders are required to submit an earnest money deposit of ₹1.14 million (approximately $13,740). This initiative aims to enhance solar energy capacity and promote renewable energy adoption.
-
Financial Outlay of PM Surya Ghar Yojana Scheme
| S.No. | Scheme Component | Outlay |
|---|---|---|
| 1 | Component A: Central Financial Assistance (CFA) for Residential Rooftop Solar | Rs. 6,000 Crore |
| 2 | Component B: Incentives to DISCOMs | Rs. 4,950 Crore |
| 3 | Component C: Incentives to Residential Sector | Rs. 1,000 Crore |
| 4 | Component D: Support for IEC and PMU | Rs. 50 Crore |
Source: Eninrac Research, OGD (INDIA)
4. Capacity Outlook
Government of India targets to achieve 40,000 MW of SRT capacity by March’2026, which means nearly 22983 MW of capacity addition from Apr’2025 till Mar’2026. During FY’2024-25, approximately 5147 MW of SRT capacity was added in India. Breaking it in quarters – it indicates an average capacity addition of 1286.7 MW, and it assumed the base value in this simple analysis illustrated
- BAU Case – Assumed that each quarter will add 1286.7 MW capacity
- 5% Growth in BAU – Capacity addition of 1351 MW every quarter
- 10% Growth in BAU- Capacity addition of 1415 MW every quarter
- 20% Growth in BAU – Capacity addition of 1544 MW every quarter
- 35% Growth in BAU- Capacity addition of 1737 MW every quarter
- 40% Growth in BAU – Capacity addition of 1801.3 MW every quarter
